Third-Party Car Insurance Policy – Know Benefits and Coverage

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Rajan recently bought and went to buy an insurance policy for his vehicle from a popular insurance provider. The insurer recommended that he opt for third-party insurance, which protected him from troubles and would save him money. To start with he did not know much about car insurance, but he got details from industry experts that made him confident about the policy he was buying.

While buying a new car insurance plan, one should be aware of the features properly, which will help invest money wisely. Moreover, knowledge of the features and benefits of a plan helps one analyse the requirements and budget.

Why is car insurance necessary?

Not just because it is made mandatory by law, car owners should buy an insurance policy because it plays a key role in safeguarding them from unforeseen events and unplanned liabilities. It is a known fact that accidents may happen while driving a car. This will result in injuries, disabilities, and even death. Having a car insurance plan helps the insured to protect oneself from financial burden arising due to unwanted issues. It even allows a car owner to get coverage for man-made mistakes, damages due to natural calamities, expensive engine repairs, etc. In addition, most insurers offer comprehensive and third-party coverage for customers helping reduce stress related to financial obligations in case of any mishappening while driving a car.

What is third-party insurance?

Anyone who owns a car should understand third-party car insurance and its features and limitations. It is compulsory in India and provides coverage against any property damages or damages to a third-party caused by a car owner. Buying third-party insurance provides protection from liabilities caused by accidents and other mis happenings.

Also Read: What is Comprehensive Car Insurance Policy

What are the benefits of third-party insurance?

  1. Legal cover and financial assistance 

Legal liabilities can affect the first party in many ways when he/she is not able to pay the amounts to a third-party person. Purchasing third-party insurance for a car aid in getting the required financial assistance that will help pay off the liabilities with ease.

  1. Covers all third-party liabilities 

The primary advantage of this insurance is that it covers all third-party liabilities when a first party causes damages to a third-party person. It provides compensation to the third party in case of injury or death apart from vehicle damages.

  1. Satisfies legal mandate

A car owner should have insurance for a third party as per the motor vehicles act 1988, and buying car insurance will help him/her to satisfy the legal mandate.

  1. Easily affordable 

The premiums of third-party car insurance coverage plans are affordable, allowing a person to pay them with ease. It is a cost-effective policy that will help overcome complications arising due to damage done by you to a third party vehicle.

  1. Reduces financial crisis 

The primary advantage of buying car insurance with third-party coverage is that it allows insured persons to reduce financial crises caused by third-party liabilities and other problems.

Things covered under third-party insurance 

Before buying car insurance with third-party coverage, customers should know the things covered in it that will help make the right decision.

  • Third-party liabilities: Third-party liabilities may result due to injuries and other factors that can lead to legal issues when it comes to compensation. They include property damages, car damages, accidental bodily injuries, and accidental death. Buying an insurance plan with third-party coverage allows a policyholder to overcome threats caused by liabilities.
  • Personal accident coverage: Some insurance companies offer a personal accident cover to the insured persons or drivers under third-party coverage. It provides compensation for disability or death benefit to an owner/ driver due to a car accident. Not only that, the policy plays a key role in enhancing maximum protection to a policyholder by addressing the essential needs.

How to choose the best third-party insurance plans in India?

Those who want to choose the best car insurance should compare the prices from different sources. They should read reviews of third-party car insurance online before buying a policy. Doing a thorough research helps in selecting a company that caters to the requirements of policy buyers. One can even buy the cheapest third-party car insurance online, which will help reduce expenses. However, it is necessary to read the terms and conditions while buying a policy online.

Things to consider while buying a car insurance plan 

One should consider certain things while buying a car insurance plan. Some of them include insured declared value, location, cubic capacity, coverage, premium amount, no-claim bonus, reputation, etc. An insured person should know how to claim the amounts from an insurance company with ease.

Car owners should also know the exclusions when purchasing an insurance plan. For example, no add-ons are available under 3rd party car insurance, and customers should evaluate the details of a plan before buying it from an insurer.

Also Read: Endorsement in Car Insurance

The bottom line

Car insurance with third-party coverage allows the insured person to manage liabilities and other things. PayBima enables customers to compare the premiums from leading companies and gives you a more comprehensive outlook about the products. A person can also select a plan from the wide options available that satisfies his/her needs. It guides customers to pick a policy wisely based on their choices and preferences.

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Gayatri Prabhu, Head-Digital Business at Mahindra Insurance Brokers Limited (MIBL) is one those few digital leaders who has the width and depth that is required to execute an ROI driven holistic digital strategy. She cuts through the noise, identifies the critical levers and leads her team to successful execution of the defined strategy. Her core mantra to win new and retain existing customers is: understand the consumer behavior and craft experiences around it.

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