What Is Covered Under Third Party Car Insurance Policy?

If you drive a car in India you may be aware that you also need to have a car insurance policy. The Motor Vehicle Act, 1988 makes it mandatory for all car owners to have a car insurance policy.

There are two types of car insurance policies that a car owner can avail which are third party car insurance and the comprehensive car insurance.

Of the two, you need to at least have the third party insurance policy and if you can’t opt for the comprehensive plan.

What is a third party insurance?

A third party insurance coverage is a type of insurance coverage that offers you coverage against any injury, harm or damage or legal liability cause to a third party. These may happen due to the fault of the car owners.

The third party insurance coverage offers cover for any legal liability that may arise out of the vehicle’s use such as:

  • Injury or accidental death to a third party website
  • Any damage occurring to any property owned by a third party

The third party does not cover any damages or other liabilities caused to own self.

On the other hand, a comprehensive car insurance offers coverage to a third party as well as the insured car owner.

Anyone who has a registered vehicle with the Regional Transport Office/Authority (RTO) can avail third party insurance cover.

What are all covered in a third party car insurance?

Here are some aspects that are covered in a general third party car insurance and if you are set to opt for such a policy in the near future.

  • Claims for the injuries

The third part car insurance policy provides coverage for all injuries occurring out of an accident. It works as a protection to the insured individual as it relieves one from paying for injuries. Right from minor injuries to fractures and beyond, there are multiple types of injuries that are covered in the third party insurance policy.

  • Permanent or total frailty

The third party insurance car insurance policy also provides handling of expenses arising due to the permanent or total disability of the third party. As a result, any loss or paralysis of limbs, body parts in an accident to a third party is rightly covered. The insurance service provider is liable to pay to the injured person. Hence, they help the car owner to save lots of money that he/she would have paid to the third party out of their own pockets.

  • Property’s damage

If your vehicle damages any kind of the property belonging to a third party, your insurance service provider is liable to pay compensation to the third party for the damages. Like this, the owner need not worry about paying from his/her own pockets and hit loss. The highest amount that can be paid to a third party as the property damage compensation is Rs.75,000.

  • Death of the third party

Unfortunately, if a third party dies after meeting with an accident concerning the insured’s member car, the third party insurance company offers compensation even for that. The coverage for the death of the third party is unlimited and depends on the earning capacity of the deceased and what impact his/her family will have on his/her absence.

The Bottom Line

It is worth noticing is that that accident is unpredictable and can come and strike anyone without intimation. Thus, the best thing is to keep yourself and your car/vehicle insured to help you stay financially protected. In the same direction, availing a third party coverage should be a good move!      

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