Is there a need for third-party car insurance policy?


If you recently purchased a car in India, one of the first things you need to do is to get your vehicle insure. There are two main types of car insurance that you can purchase today. The first is comprehensive car insurance which is preferable, especially if you own a brand new, luxurious car. The second type of vehicle insurance is third-party car insurance coverage. 

It may interest you that many car owners in India are third-party car insurance policyholders. There are several reasons motorists prefer third party car insurance online, one of which is that it is cheaper. And when your insurance policy expires, you can seamlessly complete your car insurance renewal online. 

However, the online purchase and renewal of your third-party car insurance are not the only reasons you need a third-party car insurance policy. But before we get into the other reasons, it is essential to explain third-party insurance coverage.

What is a third-party car insurance policy?

A third-party car insurance policy is a coverage protecting you from all third-party liabilities, such as death, personal injury and damage to third-party-owned property. Suppose your third-party insured car is responsible for bodily harm and damage to third-party property. In that case, your third-party car insurance will provide cover usually up to the sum of Rs. 7.5 lakh according to IRDAI. 

The insurance company compensates the third party on your behalf once a claim is filed, provide you pay the premium regularly and the accident has been verify. Your third-party car insurance is secure by a premium renewable every year. You can conveniently get car insurance renewal online, saving time and money.

Third-party car insurance is a legal requirement under the Motor Vehicles Act 

Of all the reasons why you need third-party car insurance coverage, this is perhaps the most important one. The Motor Vehicle Act of 1988 requires all car owners to own at least a third-party car insurance cover. You are, therefore, legally obligated to purchase a third-party car insurance policy according to Indian law. You cannot and should not drive your car without a minimum of third-party car insurance, or you could be penalise.

Why do you need third-party car insurance coverage?

Other than it is mandatory to have third-party car insurance in India, you should consider buying third-party car insurance for the following reasons:

  • Consider the age of your car: If your car is 5 years and over, it would be advisable to purchase third-party car insurance instead of comprehensive car insurance.
  • Avoid traffic penalties: Traffic police in India are always on the lookout for traffic offenders, including motorists that drive their vehicles without a valid car insurance policy. Having third-party car insurance will help you to avoid paying penalties imposed by traffic cops.
  • Peace of mind: Accidents often occur without warning, but with third-party car insurance, you can rest easy knowing that your insurer will pay a third party for any mishap involving your insured car.

Benefits of third-party car insurance 

Third-party car insurance offers policyholders a variety of benefits, including the following;

1. Speedy purchase: The purchase of third party car insurance online is often quick. You simply need to log in to your insurer’s website and request a quote. You will be require to provide both your car and personal details, followe by the payment of the premium amount for your car insurance coverage.

2. Lesser premium payment: The premium requirement under third-party insurance is less than that of comprehensive car insurance. It is, therefore, more affordable car insurance to have.

3. Quick renewal online: Car insurance renewal online after the expiration of the cover is fast and convenient with minimal fuss. 

4. Protection from third-party liability: A third-party car insurance protects you from third-party liabilities. Your insurer will compensate a third party affected by accident involving your insured car in the event of death, bodily injury and property damage. 

5. Quick claim process: As a third-party car insurance policyholder, you must formally report the incident to your insurance company. You would also need to file an FIR at the nearest police station. Your insurer will then conduct the necessary assessment procedure. Including sending a surveyor to check and assess the damage to the third party’s health and property caused by your insured car. Ultimately, the claim process is relatively quick, with all things being equal. 

In conclusion 

In filing a claim for your third-party benefits. If note that the third party also has to prove that the damage was caused by the first party (policyholder) before your insurer can make any compensation. 

Third-party car insurance is the minimum legal vehicle insurance. If requirement for all motorists in India according to the Motor Vehicles Act of 1988. This insurance coverage is affordable, easy and quick to purchase with speedy claim settlement.

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