Third-party liability insurance covers legal liabilities arising out of causing: Since the accident is caused by the insured car, paying for the damages is the responsibility of the insured car’s owner. Third-party liabilities result from any damages or injuries caused by the insured car to a third party during an accident. Mentioned below are the inclusions of third party car insurance 1. There is no exact limit for death claim as it is based on the verdict by the Motor Tribunal Court. The policy compensates for the Third-party liabilities which can be up to Rs 7.5 lakh in case of property damage. Third-party car insurance covers the liabilities arising due to third-party accidental damage, injury or death. What is Covered Under Third-Party Insurance? This is possible because he/she doesn’t have to worry about arranging the finances in case of an accident as the policy ensures monetary protection from any unforeseen third-party liabilities. Third-party liability insurance helps a vehicle owner to drive in peace and without any worries. However, at the time of calculating the compensation amount, the vehicle owner’s annual income is considered. Even if it has to be used as either an essential or an add-on part of the main policy, it benefits the vehicle owner fully. The coverage offered under third-party liability insurance appears exceptionally cost-effective and rewarding in terms of its cost and premium rate. Not only does it pay for the damages caused to someone else’s car or property, but also provides compensation to the third party person in case of injury or death.Īs per the Motor Vehicles Act of India, 1988, it is legally mandatory for all vehicle owners in India to at least own a third-party insurance cover to be able to use their vehicles on public roads. This is where third-party insurance comes into the picture as it provides the policyholder with the required financial assistance and helps him/her to pay off the third-party liabilities without exhausting all the savings.Īs the name suggests, third-party insurance covers all third-party legal liabilities of the policyholder if he/ she causes accidental damages or injuries to a third party person. Legal liabilities can be financially draining and can lead to bankruptcy if the vehicle owner is unable to pay for the losses or damages caused to a third-party person.
Key Benefits & Importance of Third-Party Insurance It entirely depends on the time and convenience of the car owner. With an option to renew or buy third-party car insurance online, the process has become easy, quick, and seamless.Third-party car insurance involves lawyers’ help in deciding the amount of compensation to be given under death or disability of third person.In these plans, third-party car insurance premiums do not consider the insured vehicle’s value as it is a 'legal liability and it is impossible to know beforehand what that liability would be.It covers the injuries caused by the insured car to the rest of the world. Injuries to the car owner are not covered under third-party car insurance unless the personal accident cover for the owner-driver has been opted.
In practice, the money is directly paid to the third party or his solicitor by the insurance company. The policyholder and the injured third party are the beneficiaries of the third-party liability insurance.The following salient features are a part and parcel of a third party liability insurance plan: