Motor third party liability insurance is a legal requirement as per the Motor Vehicle Act, 1988. If you own or drive a motor vehicle, you will need it to stay on road. The coverage protects you from the liabilities resulting from lawsuits, accidents, financial loss or damage to property. The protection also extends to medical expenses and covers the loss because of injury to or death of a third party. Most of the insurance providers offer it as part of the primary car insurance.
If you go for standalone third party liability insurance, your insurer may even add a comprehensive car insurance policy to it. Certain companies may include a personal accident cover along with their third party liability insurance. Some may go further; may add collision cover. In this policy, the insurer compensates for the loss incurred due to collisions that most of the time is accidents.
Why a third party liability car insurance?
Given below are some of the benefits your third party liability car insurance coverage has in store for you.
- Offers you legal protection and eases your financial burden: Your coverage here eases your financial burden in the instance of injury or disability to a third party. You don’t even have to worry about property damage to the third party. Your insurer will take care of it. Remember, the beneficiary here is neither you nor the insurance company, but a third party. But it is a must-have for peace of mind as a driver.
- Fast and simple process: Getting third party car liability insurance is a breeze. You can get it at your own convenience. Buy it online or from your insurance provider.
- It is cost-effective:You may add third-party car liability insurance into your main coverage. Or it can be bought separately. Whatever is your choice, it is the cost-effective option that ensures peace of mind. You don’t have to worry about anything that may happen to a third party from your vehicle.
Points to remember
Remember, having only third party liability only insurance may do more harm than good. Certain companies charge extra in such instances. This happens because repairing a car is a costly affair. Besides, it is of no use if your car gets stolen. The same is the situation if you are the one who caused the accident. If you are responsible for the mishap, you alone would have to bear the expense of repairing the vehicle.
The premium
Premium for third party car insurance is determined by the Insurance Regulatory Development Authority of India. And it remains the same for all companies. But it may vary based on your car’s engine capacity.
Filing a claim
Filing a claim for a third party liability car insurance is not as simple as it may appear. Approaching the police and getting an FIR is a daunting task. Afterwards, you will have to approach a motor insurance lawyer. The attorney files a case in a special court. The court hears the two sides, inspects the claim and decides the amount.