Third-party car insurance is mandatory for every motor vehicle in India. But what is third-party insurance? Read this post to find out.
As a car owner, you must follow the rules and regulations of the Motor Vehicles Act 1988. One of the most important of them is always having a 3rd party car insurance. Driving your vehicle without valid third-party insurance is punishable by a penalty of Rs. 2,000 and/or imprisonment of up to 3 months.
But what does third-party insurance mean? Let’s take a closer look at what this car insurance policy is, what it covers, and more-
What is Third-Party Car Insurance?
Third-party car insurance offers coverage against the financial and legal liabilities of the third party when the insured vehicle is involved in a road accident. The third party could be an individual, vehicle, or property injured/damaged in a road accident.
Your third-party insurance policy will cover third-party liabilities like-
- Bodily injuries
- Disability
- Third-party death
- Vehicle damages
- Property damages
How Does a Third-Party Car Insurance Policy Work?
Here’s a quick overview of how third-party insurance works-
- Vehicle owners can purchase third-party car insurance from their preferred insurer by paying policy premiums.
- Once purchased, the policy is valid for a specific duration. You should consider third-party car insurance renewalbefore the policy’s expiry to remain protected at all times.
- When you purchase a third-party policy, you get into an agreement with the insurer, who agrees to offer financial assistance if the insured vehicle is involved in a road accident leading to the liabilities mentioned above.
- In case of an accident, the policyholder should immediately inform the insurer and raise a claim.
- Once the insurer receives your claim, an appointed surveyor will examine the damage.
- After verifying the estimated repair cost, the surveyor will submit a report to the insurer, who will then pay the claim amount.
- If the accident has resulted in bodily injuries, disability, or death of a third party, then the applicable claim amount is paid as medical expenses or compensation as per the terms and conditions of the policy.
What is the Premium for a Third-Party Car Insurance?
As third-party insurance is mandatory by law, the Insurance Regulatory and Development Authority of India (IRDAI) fixes the base insurance premium, which is generally revised for every financial year. The premium is based on the cubic capacity of the vehicle.
How to Purchase and Renew Third-Party Car Insurance?
Leading insurers now allow vehicle owners to purchase third-party car insurance online conveniently. You can visit the official website of your preferred insurer and purchase the desired third-party policy by providing some basic details and paying the premium online. On successful payment, the insurer will send you the policy documents through email and/or post.
Alternatively, you can also visit the nearest office of your preferred insurer to purchase the policy offline. Just like the policy purchase, you can also renew your car insurance policy online and offline.
Stay Safe and Stay Protected with a Third-Party Car Insurance
If you’re planning to purchase a new car soon, then ensure that you also purchase a third-party car insurance policy, as it is mandatory by law. Ensure that you also complete the renewal of car insurance before the current policy is about to expire, as an expired policy is similar to not having a policy at all.
Choose a reputed insurance company to purchase your third-party car insurance policy, and don’t forget to go through the policy wording before paying the premiums.