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What does third party car insurance cover?

What does third party car insurance cover_ (1)

Every car owner should purchase motor vehicle liability insurance to provide reasonable protection against unnecessary costs arising from medical treatment, property damage or financial loss, accidental or legal liability on the part of a third party. Several reputable insurers in the country have offered effective liability insurance to protect people from such incidents.

What is Third-Party Car insurance?

Simply put, this is an insurance policy that protects you from any legal obligations that might arise in the event of an accident. Suppose you hit someone’s car and cause them serious damage. In this case, your insurer will bear the costs and/or liabilities arising from such eventualities.

Third-party car insurance is mandatory in India

Yes, it is true that third party car insurance is mandatory in India. If you are going to buy a new car, you should also get car insurance. Under the Motor Vehicles Act 1988, serious legal problems can arise when you drive a car on the roads of India without a valid insurance plan. The best thing to do is to get at least liability insurance for your car.

What does third party auto insurance include?

Now you need to think about the inclusions in third party auto insurance. In the context of liability insurance, the insurer is liable in the event that the insured is liable for damage or loss to third parties.

The insured person is called the first party, the insurer or insurer is called the second party and the injured party is considered the third party.

When shopping for car insurance, be sure to compare multiple plans online. To understand liability insurance coverage in detail, let’s take a detailed look at the coverage this policy offers:

  • Property Damage: If you’ve seriously damaged someone else’s property in an unfortunate accident, you don’t need to worry about the cost of the accident. Liability insurance guarantees that the insurer pays the damage to the third party. In this way, the insured can safely get out of complicated accident situations.
  • Death: If you are involved in an accident that results in the death of a third party, you are solely responsible for the unfortunate loss that nothing can compensate for. In such cases, you don’t have to worry, as your insurer will help you. In the event of death, the courts decide the claims. The court determines compensation according to the consequences of the regrettable loss and the employability of the third party.
  • Partial and permanent disability: accidents sometimes cause a disability. If the third party is exposed to a partial disability such as fractures and other disabilities that can be resolved over time, the insurer will provide the affected person (s) with the necessary coverage in relation to medical expenses. However, if the third party is permanently disabled, the insurer offers the third party a pre-insured amount.
  • Bodily injury: Regardless of the severity of a third party injury, medical care is available for all types of bodily injury. Reputable insurance companies know that unfortunately accidents do happen and these events cannot be controlled. This is how insurers effectively reduce stress for policyholders by offering financial support.

These are the benefits that are included in third party car insurance. The above coverage offers the insured great advantages in the event of an accident or other inconvenience.


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