Knowledge Centre

Importance of Third Party Car Insurance

While driving there is a real risk of being involved in an accident. It may lead to bodily injury or even death in some instances. There is also a possibility that there may be damages to the property of a third party.

All these liabilities may be easily covered with a third party car insurance policy.

What is third party insurance?

It protects you against any legal liability, accidental liability, or property damage in case of an unfortunate event. This policy also covers medical expenses in case a third party is injured in an accident or dies.

How does the third party car insurance work?

Firstly, you will have to intimate the insurance company about any damage. This may be done by calling the customer care number. In most instances, the insurance company arranges for the vehicle to be towed to the nearest garage. While making a claim, you will have to submit the following documents:

  • Duly signed claim form

  • Copy of the driving license

  • First information report (FIR) copy

  • Copy of the registration certificate (RC)

  • Policy document

Many car owners want to know, “Is third party car insurance compulsory?”” As per the Motor Vehicles Act, 1988 anybody who owns buys or drives a vehicle must purchase such type of insurance coverage. Furthermore, such coverage is often a component within the primary motor insurance policy.

Benefits of third party motor insurance

1. Legal coverage and financial assistance

This type of car insurance covers your legal liability in case of disability or death to any third party. In addition, it protects you against loss or damages occurring to the property of third parties. The beneficiary under this policy is the injured third party. Nonetheless, you are protected against legal and financial liability that may result to any third party.

2. Peace of mind

These types of motor insurance policies offer peace of mind during difficult situations that are primarily financial in nature. You are prevented from undergoing any financial stress and may focus on coping with the incident and prevent being stressed.

3. Quick and easy process

You may wonder on how to get third party car insurance. The entire procedure is quick and simple and completed in a very short period of time. You may purchase the policy online as per your convenience.

4. Affordable coverage

Some individuals may wonder, “Is third party car insurance worth it?”” This coverage has to be a mandatory policy. The premium paid for this cover is not high and must be availed of.

The premium and coverage may vary from one insurer to another. It depends on the model, variant, and make of the car. It is recommended you compare different options before making your choice.

If you are still wondering, “Do I need third party car insurance?” then remember that it is the best way to procure coverage against any loss or damage to third parties.

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