Buying a car is a dream for many but some don’t realize the importance of getting a car insurance policy. You can be confident about your driving skills or unaware of the benefits of having a car insurance plan. However, do remember that accidents can always happen even if there is no fault of yours. Also, subscribing to third-party car insurance is mandatory in India.
Third-party motor insurance is liability coverage that protects you from third-party claims. These claims can be due to the damages to the health or property/vehicle of a third party caused by your car. If you have third-party 4-wheeler insurance, these claims will be settled by the insurance company on your behalf.
How does a third-party liability cover work?
In a third party liability cover, you i.e. the policyholder are the first party. The insurer is the second party and the third party is the person who has claimed the damages caused by you. Therefore, if an accident is caused due to your fault, you must immediately inform the insurer and provide the details. In case you were not at fault, you can gather witnesses and lodge an FIR before claiming third-party liabilities.
Also, keep these key points in mind while purchasing third-party car insurance online:
Having a third-party car insurance policy is a legal requirement in India. Therefore, most insurers offer them at lower prices and also include them in their full car insurance policies.
A full car insurance policy offers protection from damages and injuries caused to the self. It also enables you to subscribe to add-on covers for getting additional insurance coverage and features. However, it is much more expensive than a regular third-party liability cover. Therefore, you have to be careful while determining the type of car insurance you need.
Consequences for not having liability cover
If found without a third party 4-wheeler insurance while driving, a heavy fine will be imposed according to the Motor Vehicle Act. The consequences can be much more brutal if you cause an accident without a third-party liability cover. It is because two cases will be raised against you in such a case. The first one would be to get compensation for the third party and the second one would be a criminal case for driving recklessly. The compensation would be much higher if the person faces severe injury or sustains fatal injuries or permanent disability.
You will have to manage the financial burden caused by the fine/compensation all by yourself. Moreover, the time required to deal with these issues would be mentally draining for any individual. To avoid financial loss and mental stress, get a third-party liability cover as soon as possible.
Damages caused to your car will not be covered under third-party car insurance. The hospitalization and medical charges caused due to the injuries sustained during an accident will not be covered by this plan.
Also, damages caused due to natural and non-natural incidents will not be covered by the third-party liability cover. It means that you won’t have protection against damages caused due to theft, strikes, fire, explosion, riots, and other man-made disasters. Similarly, you won’t have coverage against natural incidents like earthquakes, floods, lightning, etc.
As it does not include damage caused to your car, the services like cashless claims, roadside assistance, etc. get automatically ruled out. Therefore, you should buy third-party car insurance online only if you are ok with all these exclusions.
To determine the best car insurance plans for your car, you should check the portal of Bajaj Finserv. You can go through the motor insurance policies of the most reputable insurers on this site. Also, you can also subscribe to a car insurance policy that suits your requirements through easy steps via this portal.