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How Does Third Party Car Insurance Work?

Despite India signing the Brasilia Declaration on Road Safety in 2015 to ensure better road safety and reduce the number of car accidents, only a minor dip of 3.27% in car accidents was observed over the next couple of years. With increasing population and scanty respect for traffic rules, India is one of the world leaders in road accidents and fatalities, contributing to around 10% of such incidents worldwide. Interestingly, the blame for these accidents can almost be equally distributed between drivers and pedestrians with lack of proper traffic regulations being the root cause.

Why does one need third party insurance policy?

With high risk of getting entangled in any sudden accident even when one strictly abides by traffic rules, it is essential drivers and car-owners are protected if an accident occurs. Medical and car insurance policies protect

Car Insurance

the health of individuals and the car involved in an accident. Additionally, having a third party car insurance cover for the person(s) involved in an accident financially protects individuals from any liability costs that might come up.

Additionally, under the Motor Vehicles Act 1988, every car owner must also have a third party car insurance policy in place. NBFCs like Bajaj Finserv provide such insurance policies at competitive premiums.

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How does third party insurance affect and benefit policy-holders?

Third-party motor insurance policies have specific features which safeguard individuals from liability costs in case they are involved in an accident. These policies do not just cover the third party who gets involved in an accident but also provides their property-related liability costs.

The underneath lists the essential features which direct the working of a third party cover policy

Complete coverage: In case of an accident, there can be numerous types of damages to the third party involved. While there can be simple injuries, there also remains the probability of death. Further, there can also be instances of property damage. Under third party cover policies, individuals are protected financially against every sort of liability.

Easy settlement of claims: When an accident occurs, an FIR is lodged with the local police station. Along with a copy of this FIR, accident details and surveyor reports are all that is necessary to make the claim.

Easy online application: A point of convenience, online third party insurance allows customers to easily access and buy this financial protection policy from anywhere they want.

Economical premium packages: The premiums offered on these types of insurance policies are affordable and do not vary over the years with fixed premium rates.

Additional upgrades: Numerous additional cover plans can be bought as add-ons to upgrade the existing policy and ensuring more protection while driving on the road. A vital mention is that of motor insurance policy which protects the car in case of damage.

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What are the eligibility criteria?

The eligibility criteria for a third party car insurance policy are extremely simple and short.

  • Applicants must have a valid Indian driving license.
  • The subject vehicle should be registered with the regional transport and motor vehicles department. Vehicle retailers ensure this registration before delivery of the car to its buyer.

What other policies provide added protection?

Car owners and drivers can opt for multiple policies which safeguard them and their family from any sort of risks that might trouble them on the road. Car insurance in India is highly advised to protect the car on congested Indian roads.

Additionally, personal accident insurance covers protect individuals with all necessary medical requirements if they get injured in an accident. Any owner can ensure the complete financial safety of their family with these types of cover plans. This insurance pays compensation to the third party for the injuries, death, or property damage caused during an accident due to your fault

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