Third Party Car Insurance

Third-party insurance is car insurance coverage which insures you against all the 3rd party legal liabilities which may arise due to any mishap such as a road accident involving your car. It provides coverage for bodily injury/death of a third party (as decided by a court of law) as well as third-party property damage up to Rs. 7.5 lakh.

How Does Third Party Insurance Work?

If a policyholder holding third party car insurance gets involved in an accident, then the insurance company is liable to provide him with financial assistance for his liabilities towards a third party for their injuries, death and property damage. This insurance cover lessens the financial burden of the policyholder for any damage sustained by a third party with the insured car.

In case of an accident, the insured person should intimate the insurer immediately about the mishap before raising a claim. After the claim is raised, the insurance company appoints a surveyor to examine the extent of damages and verify the estimated repair cost. After the verification process, the insurance company pays off the amount of the claim.

Importance of Third Party Car Insurance Policy

Why do you need third party insurance for a car? As per the Motors Tariff Act 2002, it is mandatory for every vehicle owner in India to have at least a 3rd party car insurance. A third party car insurance policy provides the most basic coverage and is more affordable as compared to a comprehensive plan. Thus, besides being a mandatory requirement it is also essential to have your vehicle/car insured by at least a 3rd party only cover so that you have a minimum of basic insurance coverage for your car.

Although the third party car insurance cover holds a limited coverage, still it is crucial cover for the below mentioned coverage:

• Third Party Property Damage: All third party property damage are covered under the third party only cover up to Rs.7.5 lakh.

• Third Party Death/Bodily Injury: Under a third-party plan, the insurer provides 100% compensation in case of death of a third party and 50% indemnification in case of partial blindness or loss of a limb. The compensation amount for third party liabilities is decided by a court of law.

What Is Not Covered Under Third Party Car Insurance?

A third-party car insurance policy does not provide coverage for own-damage sustained by a vehicle or its driver/owner. To get insurance for the own-damage of your car, you can purchase a comprehensive car insurance policy or a standalone own-damage car insurance policy. Also, to insure yourself or the driver of your car you need to opt for a personal accident cover or paid driver cover, as the case may be.

Key Features of Third Party Car Insurance

The following are the features of a third party insurance policy:

Compare: Third-Party Insurance Vs Comprehensive Insurance

Here are some difference between third party car insurance policy and comprehensive car insurance policy:

What are the Benefits of Buy/Renew Third Party Four Wheeler Insurance?

The following are the benefits of purchasing third party four wheeler insurance:

• It is Compulsory: Third-party 4 wheeler insurance is compulsory and if caught without one you can be punished, hence, having one ensures you abide by the law. With the help of this car insurance policy, you can drive your car legally without violating any traffic rule and save yourself from any type of fine or imprisonment.
• Peace of Mind: In case of a mishap there can be immense financial pressure on people. If a third party is involved it becomes even more cumbersome. With third party insurance, you can be assured these liabilities will be covered which ultimately boosts your morale and lets you drive more freely.
• Low Premium Amount: The third party insurance is available at very low and affordable prices and proves to be extremely useful in times of crisis. Its reasonable rate is also an advantage of this car insurance policy which lets you find a good amount of coverage by investing a low amount.
• Cost Effective Insurance Plan: The coverage provided to a policyholder under a third party liability insurance is cost-effective in regards to the cost and payable premium amount. Irrespective of the fact whether it has to be used as an important or as an add-on part of the basic insurance cover, it completely benefits the car owner. However, when calculating the compensation amount, the annual income of the car owner is considered.
• Simple, Seamless and Quick Insurance Buying Process: The buying procedure of a third party insurance is a very simple and swift process. Any person can easily purchase the third party insurance cover online from the comfort of their home or any other place. Moreover, the policyholder can also choose to get their insurance plan renewed online easily by following the simple instructions laid by the insurance company or web insurance aggregator.
• Offers Financial Assistance against Legal Liabilities: Legal liabilities arising towards a third party property or person can be extremely financially draining and at times can even result in bankruptcy in case the vehicle owner is unable to pay for the damage or loss to third party. This is when a third party insurance plan comes to the aid as it offers the policyholder with the much needed financial assistance and helps them in paying off the third party liability without robbing them of their savings.

How to Buy Third Party Car Insurance Online?

The following steps will guide you to purchase third party car insurance online:

Step 1: Visit our Website InsuranceBox.

Step 2: In the ‘Get Your Quote' section provide your car registration number. In case you do not have it you can also provide your car's model, make and car's registration year.

Step 3: Enter your personal details such as name and mobile number. All the quotes in your category will be visible on your screen.

Step 4: Select the policy that suits your needs and price point.

Step 5: Make the payment for the selected policy and the policy document will be sent to your email ID.

How to Claim Third Party Car Insurance?

To get compensation for the mishap from the insurance provider the policyholder must follow the following steps:

• The policyholder must inform the insurance company about the incident and before the stipulated time mentioned. If claims are made after this time the insurance company can reject it.
• An FIR must be filed by the insurance holder reporting the incident at the closest police station and a copy of the same must be submitted to the insurance company at the time of filing the claim or during the process.
• The insurance holder must follow the due process and submit the required documents for completing the claim process.
• The insurance company will send a surveyor to check and assess the damage. After this, a report will be filed.
• The claim will be completed based on this report.

Points to Keep In Mind While Raising A Third Party Car Insurance Claim

Here are a few things which you should consider while making a third party claim:

1. The FIR should be lodged in the case of an accident, after which the insurance company should also be intimated about the event.Without these actions, the claim process may not release the required compensation.

2. The third-party should present the relevant evidence in order to prove the mistake of the other party.

3. It is always recommended to settle the minor damage and loss cases out of court since the procedure of registering an FIR as well as the court proceedings are time-consuming.

4. No limit is set on coverage of personal damages sustained by the third-party, while for the property damage, the maximum liability is limited up to Rs 7.5 lakhs.