Benefits, coverage, and an online claim process!
Third-party insurance for cars/bikes often covers the third person’s liabilities that arise from damaging a third party’s property, person, or vehicle. According to the Motor Insurance Act of 1988, every vehicle operating on Indian roads must carry third-party insurance. Regardless of whether it is a personal car, a two-wheeler, or a commercial vehicle, each should have its own third-party liability insurance.
You are aware that there are typically two parties involved when insurance is purchased: the insurance provider and you. And, it goes without saying that you get insurance for your family or yourself. Since the third person is the beneficiary in the case of third-party insurance, you are not protected. However, you are insured for both under comprehensive car insurance, which we’ll discuss later in this article.
With a third-party policy, the insurance company will handle your liability to any third person who may be injured as a result of an accident involving your vehicle.
Is third-party insurance mandatory? If Yes, Then why?
Setting the legal clause aside, no one can anticipate an unpredictable event, especially when the vehicle is on the road. There will always be a risk associated, not just for you but also for pedestrians and drivers. This is where third-party insurance comes into play.
If your insured car is involved in an accident, there is a chance that someone could die or suffer physical harm that could leave them permanently or partially disabled. In such a situation, the victim is entitled to compensation for which he can file an FIR.
Here, third-party insurance will take over and fulfill your obligation to the victim by providing compensation; the amount depends on the victim’s age, profession, income, and status of the third party.
How do I make a third-party insurance claim?
The first step in a third-party insurance claim is to file a complaint or record an FIR at the local police station. Following the completion of this step, the court records the case, and the process of determining who is at fault among the parties proceeds. There is a special court that hears cases involving traffic accidents because civil courts do not have the authority to render judgments in these cases.
When the victim files a claim for an injury, such as physical hurt, a permanent or partial disability, death, property damage, etc., he is allowed to request any amount as compensation for physical harm or death. However When property damage is caused, the limit is raised up to 7.5 Lacs.
Your responsibility to the victim may exceed any limit; the company will offer coverage in accordance with the contract. You are in charge of the remaining balance.
The insurance provider won’t settle a claim if it’s determined that your car is at fault. Third-party insurance includes and excludes a few things. Make sure to read them once.
“ Still intend to pursue legal action? ”
The following documents are needed in order to request a third-party insurance claim.
– Signed and filed FIR
– Copy of Police FIR
– Driving license copy
– Policy documents
– Vehicle registration certificate
The court’s decision will determine whether or not you receive compensation. You must demonstrate the opposing party’s negligence in order to settle the claim. You may receive the claim settlement if the judge finds that the other party was a mistake. You cannot collect compensation twice for the same incident, even if the amount you expected to receive is less than what you actually did. Your insurance company is not obligated to make up the difference.
What are the advantages of having third-party insurance for cars/bikes?
Third-party insurance is required by law, as you are aware; nevertheless, it also has its own set of benefits, which are discussed here:
Legal protection: You are only allowed to operate a car/bike on public roads if you have third-party insurance, if not a comprehensive plan. According to the Motor Vehicle Act of 1988, a vehicle owner must have third-party insurance for a car or bike in order to avoid legal repercussions.
Third-party coverage: This type of insurance covers your legal responsibility for any damage to a third party’s car. It also provides compensation in the event that an accident results in a person’s death, disability, or bodily harm.
Cost-effective policy: This insurance, whether acquired alone or as an add-on benefit to a plan, has full benefits for you. This seems to be cost-effective if we take the premium rates and the cost of the policy into account. However, your yearly income is considered before approving the claim and providing the compensation.
Financial support: Whenever you have a liability, it can be financially draining and lead to a major loss, making it impossible for you to endure the loss of damaged property belonging to a third party. However, with third-party insurance, you are fully supported financially.
Peace of mind: Because the insurance company has everything covered financially, you are free to carry on with your daily routines without worrying about raising the money you need to cover the cost of the incident’s compensation.
Third-party insurance vs comprehensive
The distinction between comprehensive car insurance and third-party insurance is that comprehensive vehicle insurance covers both the insured’s own vehicle and third-party liabilities, whereas third-party insurance solely protects the third party.
A comprehensive plan can be strengthened even further by adding extra protections like zero depreciation, engine protector, accessories cover, medical expense, etc. The majority of car owners prefer comprehensive insurance because it provides complete protection and relieves their stress.
Comprehensive vehicle insurance is a type of motor insurance for private car owners that provides total financial protection against car damage, personal accidents, third-party responsibility, theft, natural disasters, and other calamities. Comprehensive car insurance is essentially a broad policy that covers both personal vehicles and third-party liabilities.
Inclusion and Exclusion of third party insurance for car/ bike
When purchasing a plan, it’s critical to understand what is covered and what isn’t:
Drunk and Drive
Bodily Injury caused by accident
Exceed geographical limit