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Car Insurance Third Party
Third-Party car insurance has been mandatorily imposed for all car owners as per the Motor Vehicles Act of 1988. We can be assured that owning third-party car insurance we are legally covered from liabilities that may arise from the third party.
In any given circumstances you happen to meet with an accident or you are at fault while driving the car, the Third-Party Insurance will protect you against all or any legalities to the third person or property. Thus, making you safe of all hassles.
The third-party insurance covers damages caused to others when you are considered at fault, in turn, the vehicle sets on fire or the vehicle have been stolen.
We can always look forward to an alternative policy which is Comprehensive Car Insurance. This policy provides the car owner with the highest protection for your motor vehicles wherein the case of Third-Party car insurance, the protection is limited and does not cover damages to your car.
Third-Party does not carry much value as it is just a basic coverage in the case of damage made to the third party.
Why Third-Party Car Insurance
Let’s understand what Third Party Insurance is all about. When we say Third Party, it’s the third person involved in the accident. Under this policy, one can claim or file compensation for damage in property, death or any sort of injury caused by the car. For any such claims, the case will be filed against the car owner and insurer.
As explained earlier, Third Party Insurance covers oneself against any legalities caused to the third party due to the car. As a mandatory measure, any car that’s out of the showroom or is driven on the road needs a Third-Party Insurance. Thus, protecting the vehicle owner from legal hassles.
No doubt one might own a Third-Party Car Insurance as required by the law, besides, one must also carry insurance for self-protection as accidents do not cover in this policy.
The third-party that may be involved in the accident are compensated by the insurance company. However, such compensations are restricted to bodily injuries or death only. The compensation amount is not specifically set; hence the limit may vary from case to case.
As we have understood above that Third-party car insurance only covers damages to the third party and is not enough to cover all the damages that may incur during an accident, one should think to go for comprehensive car insurance, as this will help to cover the cost of damages caused to the insurance or car owner.
One will ask how to I know how the premium is calculated on car Insurance. Insured Declared Value also is known as IDV is carefully calculated on the current value of the car in the market less than the depreciation cost. Thus this does not include the cost of vehicle registration. The IDV is calculated separately to any additional accessories which are not factory fitted.
The value of car insurance will differ when we speak about owning a new car or an old car. The cost of the premium will be high in an old car if you insist on IDV to be high. The same way the make of the car, manufacturing year and model will play a vital role in the calculation of IDV.
Hence any customer who is passionate about driving and is looking to own a car needs to know that it is mandatory to own Insurance policy and one should think beyond Third-party to safeguard.
Let’s make the driving safe to oneself as well as others.
Benefits of Third Party Car Insurance
When we speak about Third Party Car Insurance you must know that it provides coverage against legal liabilities that might arise from third party damage to person or property.
The benefit of having third-party car insurance is that it covers the vehicle owner from legal liabilities that may arise due to any accidents or mishaps, which may lead to death or injuries to oneself, damage to third party or property. As per the mandatory law, the Third Party Insurance gives a level of relief to the car driver.
Any damages that may be caused due to your car mishaps or any of the belonging that is a part of the vehicle will not be covered in the policy. In simpler words, Third-party car insurance does not provide coverage to your car or your belongings.
The key role of motor insurance is to safeguard the ownership rights of the vehicle against expenses, damage due to accident, fire, explosion, riots, unforeseen calamities, own damage or theft of the insured vehicle.
When we say Third Party Car Insurance, it provides basic coverage against legal liabilities that might arise from third party damage to person or property.
How to Claim Third-party Car Insurance
If we come across an accident, we foresee huge bills and at this time the car Insurance policy comes handy. However, the person who benefits from Third-party insurance is the third party only.
The process of claiming third party insurance can be lengthy. One can file claims for hospitalization expenses in the event of accidental injuries and permanent or partial disability.
You will be required to file a copy of FIR or the report from inspections officers, with original bills and report from the surveyor estimating the cost of repair.
Only once you are confirmed that you are not guilty of the accident you can claim for Insurance. So, the court has to announce the decision in your favor.
Such third-party claims move on a snail pace hence to avoid all the hassle and await many opt to carry on the repair and bear the cost.