With road accidents increasing day by day, it is a respite that third party vehicle insurance has now been made mandatory by the Government of India. It protects the third party from any damages or losses that your vehicle causes inadvertently. It is legally mandatory for every car owner to buy a third party car insurance policy. The aim of this is to protect the policyholder against unnecessary expenses that may arise if your vehicle is involved in an accident and it injures a third person or causes damage to their property. Let’s understand the meaning of third party car insurance and what is covered under third party car insurance.
What is third party car insurance?
In simple words, a third party insurance policy protects you from legal liabilities, which may arise in case of an accident or mishap. Suppose you are involved in an accident which causes damage to someone’s car; in this case, your insurance provider will pay the compensation in case the person who has suffered damages (third party) makes the claim. The policy covers legal liability for injury, death and/or property damage caused to a third party.
What does third party insurance cover?
Having explained what is 3rd party car insurance, let’ understand the type of coverage you can get under this insurance plan.
Many people buy only legally mandatory third party insurance instead of comprehensive coverage because it is comparatively cheaper. With low price comes limited coverage. Following are the expenses covered by a third party car insurance policy:
- Damages caused to a third party vehicle
- Damage caused to a third party property
- Injuries caused to other people in an accident
What does third party insurance not cover?
Though a car insurance policy offering only third party insurance is cheaper, you must be aware that there are several benefits that you are missing out on as compared to comprehensive cover. Take a look at what a third party only car insurance policy does not cover:
- Cost of any damage caused to the vehicle of the policyholder in case of an accident
- Compensation in case your car or personal belongings are stolen or destroyed
- Medical expenses arising out of any injuries to you will not be borne by the insurance provider
Third-party insurance vs comprehensive insurance
By now you know what is covered under third party car insurance and what is not. While third party insurance protects only third party, comprehensive insurance provides end-to-end protection to you and your vehicle. Besides offering the legally compulsory third party cover, a comprehensive 4-wheeler insurance policy covers any damages caused to your vehicle. It offers compensation in case your car is damaged in an accident or mishap or due to natural calamities. It also offers personal accident cover for the policyholder.
Renew four-wheeler vehicle insurance hassle-free with SBI General Insurance
You must renew your car insurance policy before the existing one expires otherwise you will have to pay a heavy penalty or face imprisonment. Even if you are planning to change your insurance provider, it is best to buy a new policy before your existing policy expires. This is to ensure that your car is always covered under an insurance policy. To buy and renew 4 wheeler insurance or to generate a quote for SBI General’s Private Motor Car Insurance Policy, visit https://www.sbigeneral.in/motor-insurance/private-car-insurance.
SBI General Insurance Company Limited I Corporate & Registered Office: 'Natraj', 301, Junction of Western Express Highway & Andheri - Kurla Road, Andheri (East), Mumbai - 400 069. | The information in the advertisement is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale. 'For SBI General Insurance Company Limited IRDAI Reg. No. 144 dated 15/12/2009 | CIN: U66000MH2009PLC190546 | SBI Logo displayed belongs to State Bank of India and used by SBI General Insurance Co. Ltd. under license. | Website : www.sbigeneral.in,Tollfree 18001021111 | Private Car Insurance Policy-Package UIN: IRDAN144RP0005V03201112 | ADDIG/20-21/AUG/645