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Understanding The Basics Of Third-Party Car Insurance Policy

Friday November 2, 2018 11:42 PM, Numair M Hesham,

Third Party Car Insurance

Insuring your car is not only a mandatory requirement but also a way to cushion yourself in case of financial losses arising due to an unfortunate event such as a car accident. There are two types of car insurance policies, Third-party insurance and Comprehensive Car insurance. As per The Motor Vehicles Act, 1988, it is compulsory to insure your car with at least a Third-party insurance cover. Read ahead to know more about Third-party Car Insurance policy.

Meaning of Third-party Car Insurance

In car insurance, the insured person is termed as a first party, the insurance company providing the policy is termed as the second party and others affected by the insured car are termed as third party.

A Third-party Car Insurance policy insures you against damages caused by your car to third parties. These third parties can include pedestrians, other car, or someone’s property, etc. It is mandatory to purchase Third-party Car Insurance as it protects the insured person from legal liabilities arising due to damages caused to the third parties.

Role of IRDAI

Third-party insurance is regulated by Insurance Regulatory and Development Authority of India (IRDAI). It is the apex body when it comes to insurance in India. IRDAI decides the third-party insurance rates and revises it from time-to-time. Thus, the cost and coverage of a Third-party insurance policy is similar across insurers.

Coverage of a Third-party Car Insurance Policy

  • Injury to third parties:
    Your insurance company will cover the expenses to treat bodily injuries to any third party affected by your car.
  • Death of a third party:
    In some cases, an accident caused by your car can lead to a third party’s death as well. In such cases, the court decides the compensation. Such a compensation is arrived at keeping in mind the deceased person’s age and income. Your insurance company pays the amount to the deceased person’s family.
  • Damage to property:
    Just as an accident can cause damage to a person, it can also damage third person’s property. A Third-party Car Insurance cover insures you against such damages.
  • Injury to self:
    You can also be injured in a car accident. Third-party insurance provides a minimal cover for treating injuries to self as well. However, it is suggested to go for a Comprehensive cover if you want to cover injuries to self along with damages to your car.

Role of Claims

Claim settlement is the most important aspect of a car insurance policy. One should decide a car insurance company based on how good they are at settling claims. You can check out a company’s Claim Settlement Ratio and user reviews before finalizing a car insurance company.

Advantages of purchasing Third-party Car Insurance

  • Complying with the law
  • Peace of mind
  • Affordable coverage

Third-party Car Insurance Online

Purchasing Third-party Car Insurance online is extremely easy, it can be done in just a few clicks. Here’s a standard online policy purchase process:

Step 1 – Visit your preferred car insurance provider’s website
Step 2 – Enter car-related details
Step 3 – Select plan
Step 4 – Make payment
Step 5 – Receive car insurance policy in your inbox

Buying a car insurance policy is not a tedious process at all. Insurance company’s websites have a lot of information that simplifies insurance. However, make sure to purchase a car insurance policy from a certified insurance company. IRDAI certifies insurance companies to sell insurance policies in India. You can check whether an insurer is a registered insurance company or not by searching their website for an IRDAI registration number. If you have any doubts regarding a policy’s coverage, you can simply dial the insurance company’s customer care number and get your queries answered in no time.

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