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3rd Party Insurance

In India, there are two types of vehicle insurance which is applicable to both the vehicle for personal use and commercial vehicle usage. The two policies are:

  1. Third-party insurance
  2. Comprehensive insurance

As per the motor vehicle Act 1988, the IRDAI ( Insurance Regulatory and Development Authority), calculates the third-party damage cost and based on it, it provides coverage.

What is third-party insurance?

Third-party insurance provides coverage to the damage incurred to a third party by the insured vehicle. An additional point to note about the third-party insurance coverage is that, in case of bodily injuries for injury to the person, they will get the benefits as the first party.

The comprehensive insurance policy is a wider term and entails a lot of details. As per the Motor Vehicle Act 1988, third-party vehicle insurance is a must in India. Failing to do so can put the vehicle owner under the legal gauge. Hence, it's always good to choose a third-party insurance policy as soon as one purchases the vehicle.

Key Benefits of Buying a Third-party Car Insurance

  1. Covers the liability for the third parties- This insurance policy provides you coverage against the damages caused to third-party. Hence, it becomes important that one must choose third-party insurance to save themselves from unnecessary wastage of money in case one bumps into an untoward situation.
  2. Drive hassle-free-If you have purchased a vehicle, you would not want to get into the legal hassles. Since the insurance policy for the vehicle owner is mandatory, it is always good to invest in a third-party insurance plan. Since it is cheaper than a comprehensive plan, you can easily invest in this plan.
  3. Save on traffic fines- The next benefit of investing in a third-party insurance policy is that it saves you from traffic fines. Since driving the vehicle without a license and insurance is considered a punishable offense in India, it is important to invest in this policy.

Things not covered under the Third-party Insurance Plan

It is equally important to know what all is not covered under the third-party insurance policy as much as it is important to know what all is included in third-party insurance plans. Here are some of the exclusions of the third-party insurance plan:

  1. Own Damages- This insurance policy provides coverage for the loss or damage to the third-party but will not cover the vehicle damage unless you have invested in a comprehensive plan.
  2. Drunken Driving- This has become very common nowadays. If you drink and drive and the damage is incurred at this time, then the cost will not be covered in this policy.
  3. Driving without Driving License- If you are driving without a driving license, then you will be subjected to a penalty, and in case there is damage to the vehicle because of drink and driving, then the insurance company will not cover the cost of damage.

This is the basic information about the third-party insurance policy. You must start looking for third-party insurance in case you do not want to pay a substantial premium amount. You should shortlist a few names based on their reviews and ratings, and most importantly, you must look for the insurance provider that offers faster and quick claim settlements. You can easily get all the information on Policy Player and get assistance in making an informed decision.

An important point to note here is that you must renew the insurance policy before it expires. Since there are legal implications if one is found driving without a license, it is always good to invest at least in a third-party insurance plan. At the same time, you can also upgrade your vehicle insurance policy to comprehensive insurance. It will give you better coverage, but the premium will be more.

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