Third Party Insurance

Third Party Insurance

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What is Third Party Car Insurance?

Third Party car insurance, also known as liability-only policy, is a mandatory car insurance policy as per the Indian motor laws. This type of insurance policy provides financial and legal coverage against third party death, injury and property damage arising due to the insured car.

The compensation offered in case of third-party death is unlimited, while for property damage, it’s limited to Rs. 7.5 lakh. This policy does not cover any damage sustained by the insured car.

Third-Party Insurance Premium Rates

As per the recent guidelines from IRDA, all general insurers are instructed to offer long-term third party insurance to the car owners. As a result, there is a slight impact on the premiums to be paid.

 

Key Features & Benefits of Third Party Car Insurance?

Legal Requirement

It is compulsory by law in many countries for all vehicle owners to have at least third-party liability insurance.

Driving without this insurance can result in penalties, fines, or even legal action

Coverage

Covers damages caused by the insured vehicle to another person’s property, such as their vehicle, building, or other belongings.

 Covers medical expenses, compensation claims, and legal costs if the insured vehicle causes injury or death to another person

Exclusions

Does not cover damages to the insured vehicle.

Does not cover injuries sustained by the policyholder or the passengers in the insured vehicle.

Excludes damages arising from driving under the influence of alcohol or drugs, driving without a valid license, and intentional damage

Legal Compliance

Ensures that the vehicle owner complies with legal requirements, avoiding fines and penalties for driving without insurance

Financial Protection

Provides financial protection against the costs associated with damages or injuries caused to third parties.

Covers legal liabilities, which can be substantial in case of serious accidents

Affordable Premiums

Generally, third-party insurance premiums are lower compared to comprehensive insurance policies.

Suitable for vehicle owners looking for basic and cost-effective insurance coverage