As a vehicle owner, you should have a car insurance for your vehicle according to the government of India. Along with self-coverages, Motor vehicle Act 1988 also mandates car owners to have third party insurance coverages. If there is an accident where your car is at fault, you are liable to pay for the damages of the third-party vehicle and for the damages caused to the third party insurer.
If you do not have the third-party insurance plan in place, you have to pay for the damages from your pocket and you will have to pay for the penalties for not having a vehicle insurance for the vehicle you are riding. Additionally, not having a car insurance for your vehicle will have more consequences. You might have to surrender your driving license and the authorities might suspend your vehicle’s registration.
If you are buying a vehicle, get your third party car insurance now, you will not only be saving yourself from getting penalized but will also be insured against third party legal liabilities arising out of an accident
What Is Covered By Third Party Car Insurance
As per the reports from the road and transport authority of India, There are 55 road accidents and 17 consequential deaths every hour. In this scenario, if you have insured with a third party insurance coverage plan, the plan will pay for the liabilities claimed by the third party, when your vehicle is at fault.
When you think about taking a car insurance plan, which includes third party coverages, you should know the inclusions and exclusions for the policy you have enrolled.
Inclusions – The insurance plans cover Death, bodily injury, or disability of the third party and the Damage to the property of the third party.
Most of the insurance providers have a coverage for the damages to the third party. Although there is no limit on the liability covered for injury or death, Insurance Regulatory and Development Authority of India (IRDA) has mandated the insurance providers to have a coverage up to INR 7.5 lakhs. The policyholder or third party will cover any damages exceeding 7.5 lakhs.
Exclusions – When you know about the inclusions, you must know about the exclusions as well. The third party car insurance does not cover the insured or the damage to his/her car.
Things You Cannot Miss About Third Party Car Insurance
A third party cover is a base insurance policy, which covers only damage caused to the third party by the vehicle. Whereas, comprehensive car insurance is a complete protection insurance policy. The generic cover includes damage to vehicle, loss, and theft of vehicle as well as third party cover. There are a few important points to consider before enrolling in an insurance plan,
Coverages – The coverages each insurance plan offers you. Generally, the third party insurance plans cover the damages to the third party and accidents and related death of the third party. If you want to opt for other add-ons to the plan, you can always do that paying for more premiums.
Non-coverages – Along with the inclusions, you should also know what is not covered through the third party insurance plans. The car insurance generally does not cover the damages related to the insurer and also any damages to the car for the insurer.
Factors influencing premiums – There are several factors, which influence the insurance premiums. The more coverages you choose to cover for your insurance plan, the more premium you will pay for the plan. The driving record of the insurer and the age of the insurer will also affect the premium.
Claim reimbursements – You should not wait for the accident to know about the claim reimbursement process. You should opt for a plan, which offers you a hassle-free claim reimbursement process for yourself and for the third party. You can take up the insurance plan from an insurance agent or through online. Either way, it is easy to know about the claim reimbursement process. Know the process before enrolling in the insurance.
Getting a car insurance is important for any individual who owns a car. Think about a situation, where your new car is involved in the accident and you have to pay for the same amount of money that you have paid for purchasing the insurance. The third party covers all damages to the third car insurance party’s vehicle and to the third self. If you are thinking about buying a car, think about choosing a correct plan first by comparing it on Coverfox.com.