What is Third Party Insurance and Why Do You Need It?

All the vehicles running on the Indian road must compulsorily have vehicle insurance, mainly a third-party cover. Without an appropriate insurance policy, you may have to face severe penalties as per the Motor laws of the country. Among several benefits, the key one is it helps you stay financially covered during accidents or mishaps.

But why is a third party insurance policy so important and mandatory for a vehicle owner? Well, to get a detailed answer, keep reading the below sections of the blog. Here we will discuss its benefits, premiums, steps to purchase one and more.

What is Third-Party Insurance?

If you end up hurting a third person while driving a vehicle, or damage the other person’s vehicle or property while driving, the third party can seek reparations from you. In such a scenario, third-party insurance helps you financially by meeting the demands made by the third party.

Premium Rates for Third-Party Car Insurance

India’s insurance regulator, the IRDAI (Insurance Regulatory and Development Authority of India), has stipulated the third-party car insurance rates as follows:

The following are the third-party insurance rates for electric vehicles:

Is Third-Party Insurance Compulsory?

Yes, as per the Motor Vehicle Act of 1988, a vehicle owner must have third-party insurance. A vehicle owner can face financial penalties and imprisonment for not having third-party insurance.

Will Third-Party Insurance Cover Damages to My Vehicle?

No, third-party insurance does not cover the damages suffered by the policyholder’s car. If you want coverage for your car, you can instead buy a comprehensive insurance plan. It will give you third-party coverage and at the same time cover your vehicle as well.

Benefits of Third-Party Insurance

You can enjoy the following benefits with third-party insurance:

• Financial Security

Third-party insurance gives you financial security against claims made by a third party. The damage suffered by a third party in an accident can be quite significant. If you foot the bill on your own, it can cost you a lot. But with third-party insurance, you can be immune from such dangers.

• Legal Compliance

It is compulsory to have third-party insurance as per law. So buying third-party insurance ensures you are complying with the laws.

• Simplicity

The structure and terms and conditions of third-party insurance are much simpler compared to a comprehensive insurance plan. It is easy to buy third-party insurance: all you need to do is visit the website of an insurer like ACKO or download their app and opt for the plan you want. It hardly takes a couple of minutes.

• Lower Premium

Third-party insurance has a much lower premium compared to a comprehensive insurance plan. This is because third-party insurance excludes damages suffered by a policyholder whereas comprehensive insurance covers it.  This results in a lower premium for third-party insurance.

Steps to Buy Third-Party Insurance

You can follow the following steps to purchase third-party insurance:

Step 1: Visit the website or download the mobile app of the insurer from whom you want to buy the third-party insurance.

Step 2: Input all important information about your vehicle and opt for the insurance you want.

Step 3: Enter personal details and information about any previous insurance policies that you had bought.

Step 4: Pay the premium via net banking,

Step 5: You should receive a copy of the insurance document via email.

Please note that the steps we have provided above are generic and can vary across insurers.

Steps for Raising Claims for Third-Party Insurance

Raising claims under third-party insurance is time-consuming and complex. Overall, the steps can be summarised as follows:

Step 1: Filing of FIR. In most cases, the FIR is filed by a third party.

Step 2: Inform your insurer and present the FIR to it.

Step 3: Hearing of the case in the Motor Accident Claims Tribunal.

Step 4: Once the Motor Accident Claims Tribunal announces its judgement, you can settle the claim with your insurer.

Bottom Line

In today’s time, road accidents are a major cause of concern throughout the country. Many lives are lost, and many vehicles are damaged due to mishaps on the road. The wise thing to do is to be prepared for the worst.

Buying insurance with third-party coverage is a step in that direction. It is very easy to buy third-party car insurance. Companies like ACKO provide a completely hassle-free method for buying third-party insurance. Your insurer must be available 24 x 7 so that you can raise a claim whenever you need it.

Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.