Many people drive cars with extreme caution. However, in some situations, mere caution is not sufficient. In the event of any road accidents, natural disasters, or theft can all cause damage to you, your vehicle, or a third party. Thus, car insurance comes into play to give protection from these liabilities to car owners. In India, there are mainly three types of insurance: third-party, standalone own-damage cover and comprehensive car insurance.
Comprehensive four-wheeler insurance provides extensive coverage to your vehicle and third party, and third-party car insurance gives coverage only for third-party liability. However, this article will explore the benefits and coverage of a third-party car insurance policy.
What Is Third-Party Car Insurance?
Third-party car insurance is a must-have and legally required insurance in India, which gives you coverage against third-party liabilities, such as the loss of life, injury or damages to the property of the third party. Of course, the third party doesn’t cover the losses or damages caused to the car or the car owner. However, it gives you the financial support to compensate the third party in monetary terms in the event of an accident or collision with your car.
Who Requires Third-Party Car Insurance?
Generally, every vehicle owner needs to get third-party insurance coverage to ensure sufficient protection. However, most new vehicle owners prefer to have comprehensive four-wheeler insurance, which gives extensive coverage and can be enhanced by other add-on coverages as per the requirement of the vehicle owner.
But in cases where you have an old vehicle and don’t want to put your hard-earned money into the premium of vehicle insurance, then you should go with the third-party four-wheeler insurance, which will prove to be cost-effective for your pocket and saves you from legal hassles, fines and penalties as well.
Benefits of Third-Party Car Insurance
Third-party car insurance is beneficial along with the legal mandate. Though it does not provide the whole coverage but helps you avoid a financial burden arising from a third party in case of an accident and is usually more affordable than comprehensive car insurance policies. So let’s understand some of the third-party insurance benefits :
- Legal Compliance
According to the Motor Vehicle Act 1988, it is mandatory to have at least third-party car insurance for all car owners in India. Thus, third-party insurance will help you to complete your legal compliances Otherwise, you have to pay the penalty, or you can get into prison. So third-party car insurance helps to protect you from legal hassles.
- Affordable Premium
The premium for third-party car insurance comes with easy affordability as third-party car insurance only provides coverage against third-party liabilities, not for the damages to your vehicle. And buying car insurance online from the website of companies like Tata AIG will also save you money and effort.
- Financial Support
Third-party car insurance coverage provides financial support or protection in case there is any damage or injury caused to the third party’s property or life by your insured car. In such a scenario, the policyholder can take the coverage from the insurance company to compensate the third party in monetary terms for their loss.
Coverage of Third-Party Car Insurance
Here are the inclusion of third-party insurance are
- Third-Party Liability
Third-party car insurance provides coverage against liability arising from third parties in the event of an accident or collision involving your car. Third-party insurance covers the following such as:
- Any damage caused to the property of a third party, such as their car or house
- Any injury caused to a person due to the use of your car
- Personal Accident Cover for Owner-Driver
Third-party car insurance policy provides the weather against a personal accident for the owner-driver of the car; this cover also provides compensation if an accident or collision of a car results in the disability for the death of the owner-driver of the insured car. However, the amount of insurance depends on your insurance policy’s terms and conditions.
Car insurance is a financial and legal blanket of protection in case of road accidents that involve your car. But before you invest in a car insurance policy, consider your specific requirement. For instance, companies like Tata AIG offer a range of third-party and comprehensive car insurance. These policies can be tailored to some extent to ensure you have the best suitable policy for your vehicle at a very affordable premium. And also, remember to read the insurance policy carefully and renew it timely.