What Is Third Party Car Insurance?

Being a proud owner of your car, you might take it for granted that it will always remain safe if you drive carefully.  Having said that, it needs a cover that protects it from several risks, including dents or accidents;. Know how you can protect your four-wheeler with car insurance.

After you have purchased a new four-wheeler, the next thing you need to do is buying a car insurance policy. If you’re a beginner, then insurance can be a complicated thing to deal with. However, you will still need to buy one to secure your vehicle from any damage, to safeguard your life and to ensure third-party liability cover. You can avail two types of car insurance policies in India:

1. Third-Party Car Insurance
2. Comprehensive Car Insurance

 

Third-Party Car Insurance:

The Motor Vehicles Act mandates that you have at least third-party car insurance. This type of insurance aims to protect you from claims arising from a third-party. These can be legal liabilities that may occur if damages are caused to the third-party – such as death, disability or bodily injury – due to collision. It also covers damages done to the third-party’s vehicle.

Inclusions under the policy:

1. You can claim for the medical needs of a third party if the third-party driver gets injured in an accident
2. The insurance provides liability coverage in case of death or disability of a third-party
3. This insurance policy provides coverage to the third-party vehicle damage caused by the policyholder during a collision

Exclusions under the plan:

1. The insurance company will not offer any coverage in case of war or nuclear risks or terrorist attack
2. Loss of damage to the vehicle in case of fraudulent accident
3. Damage to the vehicle’s engine due to oil leakage
4. Damages caused to the car by an underage driver
5. Loss or damage to the car if you were under the influence of alcohol or drugs while driving
6. Damage to the vehicle at the time of expiration of your policy
7. If the owner has done damages to the car purposely without any intention

 

Comprehensive Car Insurance:

As the name suggests, comprehensive car insurance protects you against accidents, as well as offers third-party liability cover. Under this policy, you can enhance the insurance coverage through rider options like zero depreciation, engine protection, key replacement, loss of personal belongings, roadside assistance, among others. Note that all the add-on covers vary from company to company.

Inclusions under Comprehensive Car policy:

• Collisions or accidents can cause severe damage to your vehicle; car insurance provides the required cover
• Loss of damage to the car due to incidents of fire and explosion
• Damage to the car due to theft
• Loss of damage to the vehicle due to natural calamities like earthquakes, floods, landslides, etc.
• Coverage of medical treatments and hospitalization expenses because of personal accident
• Third-party liability cover includes injuries and damages to the properties of the third-party
• Coverage in case of third-party death or bodily injuries

Exclusions under the Comprehensive Car Policy

• Does not cover depreciation
• Any electrical or mechanical breakdowns
• Loss or damage to the vehicle if you do not possess a valid driving license

 

What is the difference between third-party and comprehensive car insurance?

While purchasing an insurance policy, people opt for a cheaper option without considering the benefits and coverage amount. Here are a few pointers where the two insurance policies differ:

1. Premium:

One of the main reasons why people buy third party insurance is its affordability. The premium rates are low as compared to comprehensive car insurance. If your car’s value is low and it is not much in good condition, you can think of buying third-party insurance. On the contrary, comprehensive car insurance is expensive in terms of premium rates.

2. Coverage:

As mentioned above, third-party car insurance includes damage and liability coverage for a third-party. Unlike comprehensive insurance, it does not offer overall insurance cover for your vehicle’s damage or loss,.

Benefits of Third-party Car insurance:

1. Cost-effective: Car owners widely prefer third-party car insurance as it has a low premium rate.
2. Reduces financial stress: Third-party motor insurance reduces your financial burden. If there’s an accident, wherein the third-party gets injured, the insurance company will provide liability coverage. Right from the cost of treatment to vehicle damage, everything gets covered in the claim.
3. Legal liability: This type of insurance gives you liability cover if there is death or disability of a third-party or loss or damage to the third-party’s vehicle. The insurance company takes care of all the legal implications that may arise due to the collision.
4. Easy to activate & renew: You can easily buy third-party car insurance online. When you buy this policy online, it will get activated quickly. You can also renew the plan online without any hassle.  
5. Easy accessibility: You can anytime avail of third-party insurance round the clock.

 

Buy Third-party Car Insurance Online: 

Saves time & money:

Online buying of third-party insurance policy saves your time as you do not have to visit the office insurance company office.. This way it saves your time and traveling cost. Go paperless: When in offline mode, you have to fill in multiple forms and submit all the photocopies of your documents. The online process allows you to fill forms and upload documents in digital format. This is easy and less stress-free.

 

The claim process for Third-party car insurance

Step 1: An application asking for third-party liability compensation needs to be made by the victim or the legal envoy of the departed

Step 2: File for an FIR and keep a copy of the FIR with you. Retain the original copies of the medical costs incurred by the victim at the hospital

Step 3: Approach the Motor Accidents Claims Tribunal to register the case

Step 4: The insurer needs to compensate for a specific portion of the amount to the third party once the court gives a verdict

There are many brands the offer third-party car insurance policies. If you’re looking for the best car insurance cover, checkout IFFCO Tokio that offers security against all types of risks. You will also find third-party insurance cover that fits your budget.