What Are the Benefits of Third Party Car Insurance?

Third Party Car Insurance

Third Party Car Insurance

Third-party four-wheeler insurance is compulsory, as per the Motor Vehicles Act of 1988, for anyone driving, buying or owning a motor vehicle. Apart from meeting the legal requirements, a third-party car insurance policy has several other benefits. Third-party insurance, also referred to as “act-only cover,” is a type of liability insurance that shields vehicle owners from claims made by third parties.

This blog will discuss these benefits and determine if it is worth buying.

What is Third-Party Car Insurance Online?

Third-party car insurance is a type of car insurance policy that offers protection against any third-party liabilities that might arise while driving an insured car. Third-party fire and theft car insurance offers insurance coverage for losses or damages incurred by property or a third-party person.

For instance, if your insured four-wheeler causes bodily harm to another individual in an accident, third-party car insurance online can help you pay for that individual’s hospitalisation expenses.

Similarly, this policy covers the expenses of repairing the third-party property damage caused by your four-wheeler. Additionally, third-party car insurance covers the legal expenses that you might incur because of an accident.

According to the Indian Motor Vehicles Act (1988), you must have valid third-party insurance coverage to legally drive a four-wheeler on Indian roads, ensuring financial security for third parties.

Benefits of Third-Party Car Insurance:

1. Significantly Cost-Effective

One of the most essential third-party insurance for car benefits is that it is extremely cost-effective. Insurance companies charge lower premiums for a third-party car insurance policy compared to other insurance policies. Also, the third-party car insurance price is determined by the IRDAI, and they revise it from time to time.

2. Protection From Third-Party Liabilities

Accidents can occur regardless of your best efforts to drive safely. In case you are found responsible for causing damage or injuries to a property or third-party person, you will be liable for the associated expenses.

With third-party car insurance coverage, your insurance company will bear these expenses on your behalf, ensuring protection from unwarranted financial losses.

3. Ensures Legal Compliance

By law, it is compulsory to insure your four-wheeler with at least a third-party insurance. In case you get caught by the authorities for driving a vehicle without valid insurance coverage, you will have to pay a hefty fine and may also face imprisonment for up to three months. One of the best third-party insurance for car benefits is that it offers you peace of mind that you are following the motor laws and will not face any fines.

4. Offers Coverage For Third-Party Injuries

In case your four-wheeler causes injuries to a third party, you will be liable to pay for their medical bills. These might include doctor’s fees, hospitalisation, medications, tests and more.

According to the terms of the third-party car insurance policy, the insurance company bears the expenses associated with third-party medical expenses and hospitalisation.

To Wrap It Up

Several factors must be considered when purchasing a third-party car insurance policy to ensure you get the best policy at an affordable rate. These factors include the make and model of your car, your age and driving experience, coverage limitations, deductible amount, and insurance claim history.

Additionally, make sure you purchase third-party car insurance online from a credible insurance company. To verify their credibility, you can check their reviews and ratings.

About Sashi 593 Articles
Sashi Singh is content contributor and editor at IP. She has an amazing experience in content marketing from last many years. Read her contribution and leave comment.

Be the first to comment

Leave a Reply

Your email address will not be published.


*