Is It Really Necessary To Get Third-Party Auto Insurance?
Published On May 17, 2022 10:00 AM By InsuranceDekho
What is the best way to get a third-party vehicle insurance policy? What you should know about it is as follows.
Table of Contents
- What is a Third-Party Car Insurance Policy?
- The Importance of Automobile Third-Party Insurance
- Third-Party Automobile Insurance's Benefits
- Take Away
Buying the most basic vehicle insurance policy, such as Third-Party Liability, assures that you are obeying the law. It's also less costly because it prevents you from having to pay fines. Is it, on the other hand, sufficient to select a plan with restricted coverage? Should you buy comprehensive vehicle insurance, regardless of how much it costs? The following article's goal is to offer solutions to such questions. Is it really useful to get a third-party vehicle insurance policy, especially the most important one? Let's look at the options and come up with a firm decision. Let's have a look at what you get if you only pick the Third-party policy.
What is a Third-Party Car Insurance Policy?
A third party is someone who is not you (the first party is the owner of the vehicle) or your auto insurance company (the second party). For instance, a cyclist, a pedestrian, other drivers, hawkers, and so on. It's possible that you'll cause harm to such people by accident. You can also wind up causing damage to their belongings (vehicles, homes, farms, etc.). If this happens and you're to blame, you'll have to pay for their rehabilitation or recompense them for their loss. The Motor Accident Claim Tribunal will assess the compensation amount, which may be in the millions of rupees. Your Third-Party Automobile Insurance Policy comes into play here.
The Importance of Automobile Third-Party Insurance
Why do you require third-party car insurance? Every vehicle owner in India is required under the Motors Tariff Act of 2002 to have at least third-party auto insurance. A third-party vehicle insurance policy, as opposed to a comprehensive plan, provides the most basic coverage and is less expensive. Having your vehicle/car insured by at least a third-party-only policy guarantees that you have a minimum level of basic insurance coverage for your vehicle, in addition to being a legal requirement.
Third-Party Automobile Insurance's Benefits
A list of the coverages given by a Third-Party Car Insurance policy is as follows:
Coverage from a Third Party in the event of Death or Disability
It is a devastating event when a family member dies as a consequence of an accident. While nothing will fully replace the loss, as a car owner, you may at least pay fair compensation. This plan covers coverage for a third-party death or incapacity.
Third-Party Treatment Costs
Accidents can cause major injuries that need medical attention and expensive remedies. These costs will be covered by your Third-Party Car Insurance policy.
Legal Responsibilities of the Automobile Owner
Accidents can result in legal issues. Dealing with such conflicts will demand the aid of a legal professional. Your insurance company will cover the expense if it is specified in the policy terms.
Individual Accident Insurance
You must acquire Personal Accident Coverage in addition to your basic Third-Party insurance. This is accident insurance coverage for the person who owns the vehicle, which is you. It offers death and disability benefits of up to Rs. 15 lakhs.
A third-party vehicle insurance coverage is required by law for everybody who owns a car. However, it's also true that relying entirely on this basic plan would leave you vulnerable in the case of a car accident. As a result, the Comprehensive Policy plan is launched, which covers both third-party and own-damage coverage (damage to your car). You may also customize a complete plan and take advantage of unique discounts and price reductions. Choose a Complete Car Insurance Plan if you want comprehensive coverage.
Do read - Car Insurance Coverage for Drivers and Passengers