Third Party Insurance

Third-party insurance is also known as third party liability cover. It is a legal mandatory requirement for every vehicle under the “Motor Vehicles Act”.  It provides financial coverage to the insured and the loss or damage of third party property.

Why There Is Need Of Third-Party Insurance?

While driving on the road occurring of road fatalities is common. Undoubtedly it is an unfortunate event but in order to secure you from the level of damage getting a claim against the accident is quite relaxing. Third-party insurance covers the insured vehicle in case any damage occurs to the vehicle, bodily injury, or death of the third party. According to the guidelines of IRDA

  • In case Of Death- No Limit
  • Car Insurance – Rs.7.5 Lakh
  • Two-Wheeler Insurance- Rs.1 Lakh

Benefits Of Third-Party Insurance

Financial Assistance under Third-party Insurance

The third party-insurance is not directly beneficial for the insurance company or the insurer but it ensures the owner of the vehicle or the driver of the vehicle. The legal liability of the insured in case of damage or loss of the vehicle of the third party covered under Third-party Insurance.

Peace of Mind

It provides peace of mind to the individual from getting financial stress in case the vehicle is prone to any accident.

Easy and Fast process

Buying third party insurance is an easy and quickly accessible process. The policy renewal process is also very easy after the completion of the previous limit.

Economic Policy Plans

Extremely cost-effective and economical plans are offered to the person that proves to be beneficial for him/her in all terms.

Features of Third-Party Insurance

The following attributes are covered under Third Party Insurance in case accident caused by your vehicle-

  • Third-Party Death or any bodily Injury
  • Damage occurred to the third party property
  • Insured person injuries are not covered under this insurance but covers for the injuries occurred by the insured to the third-person.
  • Personal accidental cover only in case a Personal accident component is included in the policy.

Types Of Third-Party Insurance

Broadly Third-Party Insurance is categorized into two types-

Third-Party Car Insurance

Under this insurance policy, the insurer compensates legal liabilities where the insured is faultily claimed by the third party. Plying of a vehicle without insurance is a legal offense under the Motor Vehicle Act 1988, this is why it is also known as Act Only plan.  It doesn’t include the loss or damage of the insured vehicle.

Third-Party Two-Wheeler Insurance

Insurance of third-party bike insurance is mandatory for two-wheelers as well. Otherwise, the owner of the vehicle may enforce heavy fines as per norms of road safety under the Moto Vehicles Act. So having third-party bike insurance for two-wheeler vehicles is a way better decision to reduce the stress at a minimal level.

Third Party Insurance for Private Vehicles

  • Third-Party damage of the property
  • Injury or death of the third party
  • Death of the driver or the owner of the insured vehicle

Third Party Insurance for Commercial Vehicles

  • Death or Bodily injury of third-party
  • Legal Liability for the damage and injury caused by insured to the third party.

What Is Excluded In Third-Party Insurance?

  • Damage, loss, or accident of the vehicle outside geographical boundaries.
  • Loss or Damage due to war or warlike operations.
  • Liability by a nuclear weapons or radioactive contamination.
  • Individual, other than the owner or driver was driving the vehicle.
  • Claim arising out of contractual liability.