New India Third Party Car Insurance

A third-party car insurance covers a vehicle owner against any legal liability due to damages caused to third-party. Having a third-party liability cover is mandatory as per the Motor Vehicles Act, 1988 and needs to be renewed periodically. New India Assurance company offers a ‘Liability only policy’ that covers injury/death of third-party and property damage.

However, this plan does not insure your own vehicle. The limited coverage also makes this policy inexpensive compared to a comprehensive plan. In case of third party damages, claim amount is directly paid to third-party without involving the policyholder.

New India Third Party Car Insurance vs Comprehensive Car Insurance

What All Is Covered Under New India Third Party Car Insurance Policy?

The New India third party car insurance policy gives coverage for the following:

• Financial liabilities of third party property damage: This policy gives coverage for any property damage of the third party occurred with the involvement of the insured’s car. The insurer offers coverage for the third party property damage up to Rs. 1 Lakh.
• Bodily injuries or loss of life of the third party: The insurance company gives compensation for bodily injuries, disability or death of the third party caused in any accident with the insured’s car. The compensation, however, is decided by a court of law.

What All Is Not Covered Under New India Third Party Car Insurance Plan?

A third party insurance plan is compulsory to be carried by every car owner. It is beneficial to cover the third party expenses, but holds a limited coverage. Below are some important points which are not covered under the third party insurance policy:

• No coverage is given for injuries suffered by customers.
• No coverage is offered for damages caused to the insured car.
• Optional personal accident plans for policyholders is not provided.