All You Should Know About Third Party Car Insurance

By December 14, 2018

The Motor Vehicles Act of 1988 mandates a valid third party insurance for all the vehicles plying on Indian roads. Apart from covering you against the legal and financial liabilities, it also provides a personal accidental cover of a prescribed limit depending upon the policy. You can either visit the insurer or buy a third party car insurance online to save money and get your vehicle insured without any delay.

What is a third-party car insurance?

The third party car insurance, also known as the third party liability cover is a risk protection plan, whereby in case of an unfortunate event, your insurer will compensate you for the legal and financial liabilities against the damages caused to a third party by your vehicle.

For example, if you are involved in an accident with another car and it turns out to be your fault, then your liability to the driver or owner of the other car will be covered by your third party insurance, and the insurance company will pay the claimant on your behalf.

What does a third-party insurance policy cover?

Under a third party car insurance policy, the insured vehicle is covered against the legal liabilities arising due to the negligence of the driver, which can cause death, bodily injury or property damage to an unknown third party. While there is no specific limit for death or injuries to the victim, the liability coverage for property damage is capped at Rs.7.5 lakh.

The victim can file a claim with The Motor Accident Claims Tribunal and if ruled in favour, the insurance company will bear the full claim amount on your behalf. Additionally, the 3rd party car insurance also provides financial security against the death or permanent disability of the driver or owner of insured vehicle in the event of a mishap.

What is not covered by the policy?

Unfortunately, a third party insurance plan does not cover the damages caused to the insured vehicle in case of an unfortunate event. It means that if you are involved in an accident, you’ll not be able to make any claim for repair or replacement of your own vehicle and you need to pay for it out of your pocket. A comprehensive car insurance plan is something that will protect your car financially against such perils.

Cost of buying a third-party insurance

The main advantage of buying a standalone motor insurance is its affordability. Since it covers only the third party liabilities, it is generally the cheapest form of car insurance available. The third party insurance premiums for all types of vehicles are fixed by the Insurance Regulatory and Development Authority of India (IRDAI) based on the engine capacity of a car. Here are the premium rates for the financial year 2018-19:

Engine capacity of car3rd party liability premium
Less than 1000 ccRs.1,850
Between 1000 cc and 1500 ccRs.2,863
Above 1500 ccRs.7,890

You can easily buy third party car insurance online at these standard rates and ensure a peaceful drive by staying protected against any legal troubles. In case you need funds to purchase a new car, you can avail quick finances with pre-approved offers on a gamut of loans and financial services by Bajaj Finserv. All you need to do is share a few basic details to know your exclusive offer.

Summary: A third party insurance, which covers you against the legal liabilities towards an unknown person, is mandatory for all vehicles running on roads. Since, the premium rates are fixed by the IRDAI, you can easily buy a third party car insurance online and ensure a hassle-free drive.