What is third party auto insurance coverage and how does it work?


If you own a car or plan to buy one, you cannot take it on the roads without purchasing valid insurance for the same. Although there are two types of auto insurance, liability insurance is considered the most basic insurance that no vehicle owner can do without. If you ever get caught driving an uninsured car, you will be heavily penalized by the authorities.

Automobile liability insurance is relatively affordable compared to other auto insurance, but it also offers limited coverage. If you are considering purchasing third party auto insurance from a well-known insurer, but want to gather the necessary information before making any purchase, this article is here to guide you.

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Third-party auto insurance: what you need to know

India’s Motor Vehicle Act requires car owners to carry at least one liability insurance for their registered vehicle if they do not wish to opt for comprehensive insurance. Third party insurance mainly covers the vehicle owner against loss / damage caused to a third party in an accident. Like other insurance policies on the market, even auto liability insurance has specific inclusions and exclusions that you should be aware of.

● Inclusions in third party auto insurance

Whatever your driving skills, driving on chaotic Indian roads can be difficult at times. And with so many crowds and traffic, the chances of unfortunate events, like traffic accidents, increase dramatically. In such a situation, if you end up injuring / damaging a third party or their property, you will be required to pay the cost of the damage to the other person. It is in such cases that liability insurance comes to the rescue. They cover car owners for:

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1. Personal damage to third parties

If someone is injured in an accident because of your car, you will have to pay for their medical bills and other related expenses. If you have purchased liability insurance, you can claim the finance charges involved from your insurance provider, who will take care of the rest.

2. Material damage to third parties

As with personal damage, you are also required to pay the cost of property damage to the third party. Whether you accidentally hit another vehicle or a street light, you will be liable for damage caused to your car. Fortunately, it is also covered by liability insurance, so policyholders do not have to bear the brunt of such unforeseen expenses.

● Exclusions from third party automobile insurance

While third party auto insurance covers the vehicle owner for personal and property damage caused to a third party, it does not cover damage caused to the policyholder. But that negative can be turned into a positive by adding individual accident coverage to your basic third party auto insurance. You will have to pay for the individual accident coverage separately, but the additional payment will be worth it as it will bring peace of mind.

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● Difference between comprehensive auto insurance and liability insurance

The fundamental difference between casco insurance and liability insurance is the coverage. While liability insurance protects the owner of the car against material damage and third parties caused by his vehicle, multi-risk insurance covers policyholders for both third party damage and personal damage. You should buy comprehensive auto insurance if you want maximum coverage. The insurance premium varies proportionally to the inclusions / coverages offered by a policy, so don’t worry if you have to pay more for fully comprehensive insurance.

But before purchasing insurance for your vehicle, always remember that no claims will be taken into account if the policyholder has been found driving drunk or if the driver did not have a driver’s license. valid. In addition, if a minor was found driving the car at the time of the accident, no claim will be processed. So always be responsible behind the wheel to avoid any unpleasant surprises when settling claims.

How does third party auto insurance work?

If a person is injured after taking out third party auto insurance, the policyholder can assert a claim for damage caused to a third party or to their property. For claims settlement, the policyholder must inform the insurance company of the accident within the stipulated time period mentioned in the policy document and also provide an FIR so that the insurance company can move things forward. An expert will then be sent to the insurer’s side to assess the pecuniary damage caused and verify the same before sharing a detailed report with the insurance company. Based on the final report, the amount of the claim will be processed.

You can either call the representative you have been in contact with on the insurer’s side or just email them on their official email id with the necessary details. Having a good insurance company on your side is important if you want faster claims settlement and great customer support. So take your time and do your due diligence before purchasing liability insurance from any insurer.

Purchasing third party car insurance from a trustworthy insurance provider will allow you to drive legally on Indian roads without worrying about traffic penalties or fines and will save you unexpected and unavoidable expenses in the event of an accident. of the road. With so many benefits on the table, you shouldn’t hesitate before insuring your vehicle.

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