A third-party car insurance policy provides coverage against any damage or injury caused to a third party due to your fault. According to the Motor Vehicles Act, 1988, having third-party car insurance is mandatory while driving the car.
A Third Party car insurance provides cover for any legal liability arising out of the use of the vehicle for:
- Accidental death/injury to any third party
- Any damage to property owned by the third party
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Who should Buy Third Party Car Insurance?
Any vehicle owner requires to get third-party insurance coverage. It’s a legal binding to carry Third Party Car Insurance while driving. It is an ‘Act Only’ insurance, as it acts only upon the action of a third party.
Coverage Available under Third Party Insurance
Bodily Injury: Various kinds of injuries from minor injuries to major fractures are covered under third-party insurance.
Permanent or Total Disability: The insurance company provides compensation to the injured person and helps the insured to pay the third-party claims. This includes coverage for paralysis of limbs, loss of body parts due to an accident, etc.
Death: The insurer provides compensation for the accidental death of a third party. This coverage depends on factors like earning capacity of the deceased person and the impact of death on the affected family.
Property Damage: A third-party car insurance covers any kind of property damage for a third party. The maximum amount of such third-party property damage is Rs 7.5 lakh.
Concluding Words
It is important to remember that accidents can happen to anyone and at any time. Keeping yourself and your vehicle covered will help you stay protected against any accidental mishap. Having third-party insurance will only cover you against the third-party liabilities. To ensure financial cover for your bodily injury/car damage, you are thus advised to consider buying comprehensive car insurance.