Car Insurance – Third Party Car Insurance

Car Insurance policy offers protection against the loss or damage caused due to any unforeseen accident or incident and gives you financial support.  It secures the policyholder from any damage, theft or third party liability. As per the law, it is mandatory to get the Car Insurance.

Insurance companies provide two types of Car or Motor Insurance:

1.       Comprehensive Insurance: This insurance provides wider insurance coverage which includes protection against any loss or damage caused to the policyholder’s vehicle as well as covers third party liability.

2.       Third Party Insurance: Third Party Motor Insurance or Car Insurance, also known as liability-only plan, covers any loss or bodily damage caused to the third party / third party’s property, by the policyholder. It also covers any legal liabilities caused by the third party following the accident.

What is the significance of Third Party Insurance?

As per Motor Vehicles Act, 1988, Third Party Motor Insurance is mandatory for all vehicles in India. It is also termed as “act only” insurance, which reduces the worries of the policyholder about the car hitting or damaging another being’s property and facing any legal liabilities. If third party files a complaint or a case against the policyholder and he is held legally liable for the damage or loss, the insurance company protects and indemnifies the insured.  It is the cheapest plan you can buy.

Key Benefits of Third Party Car Insurance:

·         Cost Effective: This policy is exceptionally cost effective which provides great benefits at extremely affordable premium rates which can be modified according to the requirement of the policyholder. The premium of this plan is a fixed nominal value which is updated annually by the IRDA.

·          Legal Cover and Financial Assistance: This Insurance plans takes care of any financial and legal burden on the policyholder due to the loss or damage caused to the third party. It provides coverage in case of any damage to the property of third party and disability or death of the third party.

·         Hassle free purchase: This policy can be easily bought from the branch office of the insurance company as well as online. You can also easily renew the policy only without any complication.

What is covered?

·         Death or bodily injury to the third party.

·         Damage to the property of third party.

·         Permanent total disability to the third party.

·         Accidental death of the third party.

What is not covered?

·         Driving under influence of alcohol or drugs.

·         Accident during any illegal act.

·         If the Car was being used for commercial purpose at the time of accident.

·         Deliberate or staged accident.

·         Own damage, theft.

Third Party Premium Calculator:

The premium of Car Insurance is calculated on the basis of the capacity of its engine. Refer the table given below:

Engine Capacity	Premium
Upto 1000cc	Rs 2,065
Between 1000cc – 1500cc	Rs 2,863
More than 1500cc	Rs 7,890

Although the premiums of Third Party Insurance are comparatively low, it does not give you full benefits. Your loss or damage is not covered. Therefore, it is recommended to go for the Comprehensive Plan, which covers both the aspects.

Always remember to compare and weigh the inclusions and exclusions of the insurance before buying it and choose what fulfills your requirement.