Is the presence of third-party car insurance really necessary?
Third-party car insurance is the simplest type of coverage that every driver must receive while on the road.
Table of contents
What does a third-party car insurance policy require?
Coverage provided by third-party car insurance
Third-party death/disability coverage
Third-party treatment costs
Legal responsibilities of the owner of the car
Accident insurance for individuals
The importance of car insurance against third parties
Take away
Purchasing a basic car insurance plan, such as third-party liability coverage, ensures that you follow the law. It is also less expensive and helps you avoid paying fines. However, is it enough to choose a plan that provides only limited coverage? Do you have to buy comprehensive insurance coverage on cars, even if they are expensive? The purpose of the following article is to provide answers to this Queries. Is buying a third-party car insurance policy, especially the most vital, really useful? Let us examine the options and find a specific solution. First, let’s review what you receive if you only choose third-party policy.
What does a third-party car insurance policy require?
The third party is anyone else (the first party is the owner of the car) and your car insurance company (the second party). For example, cyclists, pedestrians, other motorists, street vendors, etc. It can inadvertently bring harm to such people. You can also cause damage to their property (vehicles, houses, farms, etc.). If this happens, and you are wrong, you must pay for the treatment or compensate them for their loss. The amount of compensation will be determined by the Motor Accident Claims Tribunal and may be in millions of rupees. This is where a third-party car insurance policy comes in. Your car insurance provider will cover expenses on your behalf under this coverage.
Coverage provided by third-party car insurance
Here’s a list of coverages provided by a third-party car insurance policy:
Third-party death/disability coverage
When a family member dies as a result of an accident, this is a tragic event. While nothing will be able to make up for the loss, as the owner of the car, you can at least provide reasonable compensation. This plan includes coverage of the death or disability of a third party.
Third-party treatment costs
Accidents can lead to serious injuries that require medical attention and expensive treatments. The third-party car insurance policy will cover these expenses on your behalf.
Legal responsibilities of the owner of the car
Accidents can lead to legal wrangling. Dealing with these differences will require the assistance of a legal specialist. If expenses are mentioned in the policy terms, your insurance provider will cover them.
Accident insurance for individuals
With standard third-party insurance, you must purchase separate personal accident coverage. This is an accident insurance policy for the owner of the car, which is you. It provides up to Rs. 15 in death and disability compensation.
The importance of car insurance against third parties
Why do you need third-party car insurance? According to the Auto Tariff Act 2002, every car owner in India must obtain car insurance from at least a third party. When you oppose a complete plan, a third-party car insurance policy provides basic coverage and is less expensive. Thus, in addition to being a legal necessity, securing your car/car through at least a third-party policy ensures that you receive minimum basic insurance coverage for your vehicle.
Take away
According to the legal requirements for owning a car, a third-party car insurance policy is a must. However, it is also true that relying solely on this basic plan will not protect you in the event of a car accident. As a result, a comprehensive plan called comprehensive policy is presented, which includes third-party coverage and special damage (damage to your vehicle). You can also customize a comprehensive plan and take advantage of special offers and premium discounts. If you’re looking for comprehensive coverage, go to a comprehensive car insurance plan.
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Disclaimer: This article is published in the public interest and is intended solely for the purposes of public information. Readers are advised not to rely on the contents of the article as crucial in nature and should conduct further research or consult an expert in this regard.
