Third-party car insurance protects you from legal liabilities arising from injuries or damages caused to a third party by your insured vehicle. It covers losses and injuries to a third-party person or property caused by your insured car.
What is Third Party Car Insurance & benefits? Vehicle insurance is crucial. It offers numerous advantages. Auto industry experts particularly recommend third-party car insurance. What exactly is third-party car insurance? What are its benefits?
Third-party insurance is mandatory motor vehicle insurance under the Motor Vehicles Act, 1988. It provides financial protection against damage or injury to another person (third party) on the road. This insurance primarily covers damages caused by third parties. While it doesn't directly cover damage to your own car or yourself, it does indirectly offer significant protection.
What does third-party insurance cover?
If your car damages another vehicle, this insurance covers the expenses. If a person is injured or dies in an accident, this insurance provides them with financial assistance. In a way, it financially supports the compensation for damages caused by your vehicle, relieving you of the burden.
If your vehicle damages someone's property, compensation is paid. However, note that there are value limits, often up to Rs 7.5 lakhs, which may vary depending on the plan.
What are the benefits of third-party insurance?
It fulfills legal requirements. This insurance is mandatory by law, helping you avoid penalties. In major accidents, the cost of damages to third parties can be very high. This insurance saves you from that financial burden. The easy claim process makes it simple to compensate the third party after an accident, as the insurance company takes responsibility.
What is not covered by third-party insurance?
Damage costs to your car, coverage for your injuries or death, and maintenance or repair costs for your car during the accident.
How to purchase third-party insurance?
You can buy it online via insurance company websites or through an insurance agent. Dealers can also assist when buying a new car.
Is third-party insurance sufficient?
If you want coverage for yourself and your car, comprehensive insurance is the best option. But if you just want to comply with the law and protect third parties, third-party insurance is enough. However, purchasing comprehensive car insurance is a wise decision as it provides all necessary benefits under a single policy. It not only allows you to comply with the law by providing third-party insurance coverage but also helps cover damages to your car and yourself.
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