28 Oct 2020
77 Views

In India, third party car insurance is mandatory by law under the Motor Vehicles Act, 1988. The policy is the most basic and cheapest car insurance plan available in the market. It covers you against damage to any third-party property and person. The insurer will settle the claim for damage expenses or injuries caused to the driver due to your insured vehicle.

In this section, we have discussed third party car insurance in detail. Let us begin by understanding why a third party car insurance plan is necessary.

Why Do You Need Third Party Car Insurance?

Besides the legal obligation of having third party car insurance, the policy plays a vital role in case your insured vehicle hits another during a mishap. It is ideally impossible to determine the level of damage any accident would cause. In extreme cases, it may lead to the death of a third person involved as well.

During such scenarios, the victim (third-party person) can claim on your third party car insurance plan for compensation. The policy will provide coverage for any liability claim raised against bodily injuries, property damage, or death of the victim.

According to the Insurance Regulatory and Development Authority of India (IRDAI), there is no cap limit for compensation in the event of the death of a person. However, property damage coverage is up to Rs. 7.5 Lakhs.

How Does Third Party Car Insurance Work?

As mentioned earlier, third party car insurance is meant to take care of your legal liabilities in case your car causes damage to the third party. The third party is someone who files for liability claims against you (the insured). The insurer will verify the incident and pay the necessary compensation for the incurred loss.

In third party car insurance, the policy covers for bodily injuries and damage to the property. In the first case - that is bodily injury liability - the claim is raised against you in the event your car injures another person. Here, the insurer will pay for the hospitalisation expenses, loss of income, permanent disability, and death that may arise due to the mishap.

In the second case - that is damage to property liability - the claim is raised against you if your car causes damage to third-party property. The insurer will compensate for the loss incurred and replacement of the damaged structures.

Benefits of Third Party Car Insurance

Following are the advantages of third party car insurance that you can avail after purchasing the policy.

  • Legal Liability:

Since third party car insurance is mandatory by law under the Motor Vehicles Act, having this policy ensures that you are driving on the Indian roads legally. Moreover, it saves you from paying hefty penalties.

  • Affordable:

Buying a third party car insurance plan online is affordable and simple, which is why it can be purchased at any time, anywhere. The online buying process is very straight forward so you save a lot of time. You can also avail discounts online which also allows you to save more money. As stated earlier, the third party car insurance will take care of the bodily injuries or death (in extreme cases) caused to another person due to your vehicle.

  • Coverage:

It covers the damage caused to third-party property. Most insurers in India offer personal accidental cover on third party car insurance plans. That way, the person driving the vehicle is protected in the event of death or permanent disability caused in an accident.

Disadvantages of Third Party Car Insurance

Every insurance policy has certain limitations. Even third party car insurance has several disadvantages. Some of these are as follows -

  • The policy offers limited coverage. It does not protect your vehicle against damages/losses incurred in any mishap.

  • The policy does not cover loss caused to your car due to natural or man-made disasters.

  • Insurers in India do not allow you to enhance the scope of the policy with add-on benefits.

Inclusions of Third Party Car Insurance

Third party car insurance covers the following things -

  • Damage to the third party:

At times, unforeseen events such as an accident can lead to bodily injuries or death (in extreme situations) of the third party. A third party car insurance ensures that such cases are covered. The insurer will compensate for the hospitalisation expenses and other losses that may arise because of it.

  • Damage to third-party property:

Sometimes, accidents can lead to third-party property damage. Hence, the policy covers the insured against damage/loss caused to other people’s vehicle, house, or property. The compensation for the same is up to Rs. 7.5 Lakhs.

  • Personal accidental cover:

Most insurers in India offer personal accidental cover on third party car insurance plans. With this cover, the insurer will financially compensate for the loss incurred by the insured in an accident.

Exclusions of Third Party Car Insurance

Third party car insurance does not cover the following things -

  • Damage to own vehicle:

The policy does not cover for the damages incurred by the insured vehicle in case of accidents, theft, or loss due to man-made and natural disasters.

  • Drunk driving or overspeeding:

The policy will not cover the damage to third-party property or person due to a drunk driving situation.

  • Driving without a valid driver’s licence:

Insured individuals cannot claim on the third party car insurance plan if they do not have a valid driving licence.

Now that you have a good understanding of third party car insurance, you can proceed to buy the policy at Finserv MARKETS online. Keep reading to know why you should choose us.

Why Choose Finserv MARKETS For Third Party Car Insurance?

The reason you should buy third party car insurance at Finserv MARKETS is as follows -

  • Trusted companion: 

We have served 100 million+ happy customers across India. Time and again, they have chosen Finserv MARKETS as their trusted financial partner. So, it's your time now!

  • Hassle-free renewals:

Just as easy it is to buy car insurance with us, so is the renewal process. So, you can renew your third party insurance coverage in no time.

  • Quick online process:

Buying/renewing car insurance at Finserv MARKETS involves no tedious paperwork. Search the plan of your choice and buy online in just a few minutes.

  • Calculate your car insurance premiums:

Before buying the policy, you can use our car insurance premium calculator to determine how much the policy will cost you. Based on it, you can choose a plan that best suits your needs.

Conclusion

Besides being mandatory by law, third party car insurance ensures that you are covered against all the third-party liabilities. It is the most affordable car insurance plan available in the market. However, if you prefer extensive coverage, you can invest in a comprehensive car insurance plan. You can read more about comprehensive car insurance policy by visiting Finserv MARKETS online.

 

"Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”

FAQs on Third Party Car Insurance

  • ✔️How can I buy third party car insurance at Finserv MARKETS?

    Buying third party car insurance at Finserv MARKETS is a simple process. Just follow the steps below -

    1. Visit Finserv MARKETS and go to the ‘car insurance’ section.

    2. Choose the type of coverage you need - third party car insurance in this case.

    3. Fill the application form with personal details.

    4. Upload the necessary documents.

    5. Pay the premium amount online.

    6. The policy will be issued in no time.

  • ✔️How can I claim my third party car insurance policy at Finserv MARKETS?

    Follow the steps below to claim on your third party car insurance at Finserv MARKETS.

    1. Register your claim request at Finserv MARKETS.

    2. Fill the claim application form with personal and policy details.

    3. Upload the supporting documents.

    4. Submit the application and wait for the insurer to verify the details provided.

    5. Upon verification, the insurer will approve/reject your claim request.

  • ✔️What’s better - third party car insurance or comprehensive car insurance?

    Third party car insurance only covers third-party liabilities. For extensive coverage, you should invest in a comprehensive car insurance plan. Both these policies are available on Finserv MARKETS online. So, go ahead and buy a plan that is affordable and fulfils your needs.

  • ✔️What is NCB in third party car insurance?

    The No Claim Bonus (NCB) in third party car insurance is a reward awarded to the policyholder for each claim-free year. The accumulated NCB benefit can be used to avail discounts on car insurance premiums at the time of renewal.