This gives you peace of mind knowing that in unforeseen circumstances, you have sufficient financial protection against third-party claims. Further, you cannot claim compensation more than once for the accident. If the compensation awarded by the court is lower than the cost of repairs, the victim cannot file a claim with their own insurer. Any compensation above this figure need to be borne by the vehicle owner.
When you’re buying third-party auto insurance, you’ll need to choose the amount of coverage you want. Your policy will either be a split limit or a combined single limit. A Third-party Liability policy offers a Personal Accident cover for the owner/driver up to Rs. 2 lakhs. This is subject to the terms and conditions mentioned in the car insurance policy. Considering today’s hospitalization and medical treatment charges, such a cover might not be sufficient.
To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners. The claim would be taken to the Motor Accidents Claim Tribunal .
What is not covered?
If you are found driving without a valid insurance policy, you will have to pay a hefty fine or, in some cases, face imprisonment. Moreover, you would have to cover all the financial and legal liabilities arising out of the incident. Then, compare quotes from multiple companies to find the best rates and coverage for your needs.
Your medical expenses might be much higher than the claim amount received in case you suffer a personal injury while driving the car. If you drive a car without any valid insurance cover plan, you may attract severe penalties under the prevailing laws. Before understanding the importance of a third-party car insurance cover, let’s understand what it actually is. Third-party car insurance provides coverage against any property damages, physical injuries or death of third parties if the car owner is at fault. For example, bumping the insured car with another car on the road. The Comprehensive Insurance Plan for cars offers wide-ranging benefits.
- If you seek coverage for the same, a comprehensive car insurance policy is recommended.
- It is an essential benefit that a third-party insurance policy secures for the driver or owner of the vehicle involved in an accident.
- Those who opted for this policy last year or have bought the policy this year, don’t have to renew the policy for the next two years.
- These aspects of the third party insurance have been explained with the help of various case laws.
- In such a scenario, a third-party insurance plan covers for you.
It is for the purpose of indemnifying the insured for damage caused due to accident by the vehicle , to a third party. Third party includes owner of the goods or his authorized representative carried in the vehicle and any passenger of a public service vehicle. The long-term Third-Party Package, which includes Own Damage cover as well for three and five years, has been withdrawn by the IRDAI.
Under Section 149 the insurer have been statutorily liable to satisfy the judgment and award against the person insured in respect of third party risk. As the name suggests, a third-party policy focuses on another individual involved in an incident that happened with your car. In such a situation, you are liable to pay compensation for any physical harm or property damage that this individual may face. Depending on the damage, this compensation can be too much for you to pay out of your own pocket. Moreover, there can be a legal issue if the third-party chooses to take the matter to the police or the court.
Section 147 has to be given wider, effective and practical meaning so that it may benefit various categories of persons entitling them to claim compensation from the insurer or the insured or both. Insurer’s liability commences as soon as the contract of insurance comes into force. The liability remains in existence during the operation of the policy. If the existing policy is renewed the risk is covered from the moment the renewal of the policy comes into force. If the accident occurs before the renewal comes into existence, the insurer cannot be made liable.
How to get the cheapest Third-party car insurance?
What this means is that the policy will have both OD and third-party covers. Earlier, only a third-party insurance policy was available separately, not an OD policy. The OD policy could only be bought in combination with a third-party cover. As per the rules and regulations of the IRDAI, it is up to the Motor Accident Claims Tribunal to decide on the claim amount. While there’s no upper limit on personal damages to a third-party, there is a limited liability of up to Rs 7.5 lakhs in case of damages and losses caused to a third-party vehicle or property.
Thus, there is no way to get the cheapest Third party insurance policy as all insurers offer these policies in exchange of the same premium amount. Also known as third-party liability insurance, third-party car insurance is a type of coverage plan that assists you in covering any legal or financial liabilities that arise out of an accident. This type of car insurance applies to damage or loss you may have inflicted upon a third-party individual, vehicle, or any other property. The insurance cover includes coverage against death of or bodily injury to a third party anddamage to any property of a third party. However, it is important to note that a third-party car insurance cover does not offer protection to the policyholder’s vehicle. Third-party insurance is also called liability insurance and is the part of your car insurance coverage that pays for the injuries or damage you cause in an accident.
With effect from September 1, 2018, those buying new vehicles had the option of buying a bundled cover for three years for the third-party cover and a 1-year term for the own damage cover for cars. Similarly, a bundled cover with 5-year term for the third-party cover and a 1-year term for OD cover is available for two-wheelers. With the new guidelines issued by IRDAI, one will now get the flexibility to buy these two insurance covers separately, either from the same insurer or from different insurers. The insurance company covers any legal or financial liability towards the third party. If you are caught driving without a valid third-party liability insurance, you will be liable to pay a fine of Rs 2,000. Additionally, your license may also be disqualified, and/or there may be imprisonment charged for up to 3-months.
Third-party insurance is a basic insurance cover that protects you against financial liability in case of third-party loss, damage of property, or any third-party death is third party insurance enough for car or bodily injury. Owning and driving a car in India comes with various responsibilities. Apart from following traffic rules, you must have third-party car insurance.
Avoid paying for others’ damages
Yes, as per the Motor Vehicles Act of 1988, third-party insurance is mandatory for all vehicles driving in India. This is a cumbersome process that is only recommended in case of death or severe bodily harm. In case of vehicle-damage only, it’s recommended to go for out-of-court settlements as it’s quicker and easier. Third-party insurance offers a basic level of protection to all policyholders.
This type of coverage pays for the damage you do to someone else’s property. The earlier example of the fender bender and consequent bumper damage provides an example of a scenario in which this type of coverage kicks in. Still, the property can refer to any structure the at-fault driver’s car hits, from lamp posts to buildings.
Corporate & SME Insurance
Thank you for the excellent service and clarification provided in even the minute details. Helped me a lot and I got a clear insight of the ICICI Lombard car insurance services. It’s true—as your car ages, its value reduces due to depreciation. But it also means that your premium for own-damage will be lower.
To cover damage to a vehicle or driver, the owner needs comprehensive insurance along with personal accident cover. ‘Third party’ and the ‘own damage’ cover, taken together, is referred to as comprehensive coverage. Ideally, one should opt for the comprehensive insurance policy for complete coverage. He explained clearly the ins and outs of your car insurance plan including benefits such as inbuilt personal accident coverage. The polite way in which he answered each and every of my questions convinced me to purchase the policy.
Several insurance companies also provide a personal accident cover along with theirthird-party car insurance policies. If the third party affected by your insured vehicle wants to file a claim, they will have to submit an FIR charge sheet to request compensation for their losses. In case there are injuries caused to a third-party person, then a copy of the medical bills will also be needed. The third-party car insurance policy covers the policyholder against injury, disablement or accidental death of a third-party person, including treatment costs and legal fees, if any.
However there is no bar for the insurer undertaking a higher liability i.e. liability for a greater amount than that mentioned in the Act. Thus the insured and the insurer can contract and can provide for a higher liability. Since the coverage is limited in Third-party Car Insurance Plan, the premium is lower as compared to the Comprehensive Insurance Plan. There is no paperwork involved in buying Third-party Car Insurance online from ACKO.
It allows you to buy insurance from anywhere you want and at any time. A no claim bonus benefit applies only to making claims for damages to your own car. Since, a third-party policy does not cover own damages, you cannot have a no claim bonus. Moreover, no claim bonus is an add-on benefit that can only be availed with a comprehensive policy. Thanks to your salesperson, I was able to buy car insurance from ICICI Lombard without any complications. She was polite and respectful, and gave some valuable assistance to help me out with the purchase.
Third party premium rates are decided by IRDA and are subject to change each year depending on the previous year’s premium collected, claims settled, and many other factors. Car insurance rates would increase if your car is fitted with the Bi-fuel system and other electrical and nonelectrical accessories. Both the own damage and third party premiums would be increased in this case.
You can avail of quick roadside assistance in case of an accident, helping you stay calm and stress-free in the face of a crisis. Animesh Das, Head of Product Strategy, ACKO General Insurance said that new cars or two-wheeler owners need to take long-term third-party cover for 3-years for car and 5-years for bike mandatorily. “You can now buy standalone Own Damage policy from the same or other insurer over and above third-party cover,” he said. Therefore, those who have a long term third-party only cover can now buy and add the OD cover in the second or third year as well. A comprehensive insurance policy, on the other hand, covers the following things.
According to IRDAI guidelines, insurers are not permitted to offer long-term stand-alone own damage policy, i.e., 3-year stand-alone OD plan for cars and 5-year stand-alone OD policy for two-wheelers. Therefore, you can renew the standalone own damage policy with the existing insurer or different insurer only on an annual basis. In standard comprehensive insurance, you get a protection cover for the owner and your vehicle. You can get a protection cover for your driver and passengers by giving an extra premium.