In India, it is a legal requirement for all new car owners to have long-term third-party insurance coverage. The coverage safeguards the financial interests of third parties in the event they incur losses due to the insured car.
Let’s delve into the details of third-party car insurance policies.
Understanding Third-Party Car Insurance Meaning
The third-party car insurance definition is quite simple: It is a type of four-wheeler insurance that protects policyholders against any third-party liabilities that might arise while driving an insured car. It covers third-party death or bodily injury and damages to third-party vehicles or property.
The term “third-party” refers to an individual other than the two parties involved in the car insurance contract, i.e., the policyholder and insurance provider.
Key Features of Third-Party Insurance Coverage
Affordable Premiums
The IRDAI determines third-party car insurance premium rates. Compared to other policies, third-party insurance has slightly lower premiums. Therefore, if you are looking for affordable policies, you can choose among the cheapest third-party car insurance plans.
Cashless Claims
Your insurance company has tie-ups with numerous garages. In case of an accident, a third party can get their four-wheeler repaired at any of the garages. You will not be required to pay for car repairs from your pocket. Your insurance provider will settle the bills directly with the garage.
High Coverage for Car or Property Damage
For any damage caused to a third party’s property or car due to your insured four-wheeler, third parties can receive up to ₹7.5 lakhs in insurance claims per the IRDAI mandate.
Unlimited Liability for Personal Damage
In a third-party car insurance coverage, you get unlimited liability for personal damage to third-party individuals in the form of injuries. The insurance company covers all medical bills, regardless of the cost.
What Does Third-Party Insurance Cover?
- Bodily injury or death of a third party.
- Damage to a third party’s vehicle due to the insured vehicle.
- Damage to a third-party’s property (extent limit of 7.5 lakhs)
What Does Third-Party Insurance Not Cover?
- Cost of damages to a four-wheeler or the belongings in the event of an accident.
- Cover for losses incurred if your four-wheeler or belongings are destroyed or stolen.
- Coverage against damages to your own four-wheeler.
Things To Consider While Getting Third-Party Car Insurance Coverage Does Not Cover Your Own Damages
Your third-party car insurance will not cover losses and damages to your own four-wheeler. To financially protect your four-wheeler, purchase a separate comprehensive car insurance policy from a reputable company.
Does Not Cover Damages Arising from Natural Calamities
Natural calamities, including earthquakes, tsunamis, and floods, can cause severe damage to your four-wheeler’s engine and other vital components. However, a third-party policy does not cover damages caused due to natural calamities.
You Cannot Opt For Add-Ons
Various add-ons, such as Nil Dep cover, Consumables cover, Engine Protector, etc., can boost your policy’s coverage. However, you can only opt for them if you purchase comprehensive car insurance and not with third-party insurance.
To Wrap It Up
We hope this article clarifies “third-party policy meaning,” “what does 3rd party insurance cover?” and associated questions. Contact a trusted insurance provider to determine the appropriate extent of coverage for your requirements.
Comments are closed.