What does Third Party Insurance Include?

Quick Car Insurance

     A third party insurance provides the below coverage and includes:

  • Third Party Liability
    The Liability covers in case of injury or death to the Third Party and it is unlimited. In case if the third party has lost his/her life, then the insurance provider will bear the compensation. Based on the FIR and case registered with Motor Accidents Claims Tribunal, the compensation amount is determined by Car insurance Dubai. This doesn’t depend on the deceased’s income but more on how much it has affected his/her family because of the loss. In the case of a private car, the insurance cover for legal liability of the paid driver depends on the Workmen’s Compensation Act 1923. Similarly, coverage for unnamed passengers can also be taken with a nominal additional premium of Rs. 50/person for a sum insured of Rs. 1 lakh up to a maximum of Rs. 2 lakhs.
  • Property loss
    During an accident whatever property damage occurs, the compensation can be claimed for property damage through the third party insurance cover. According to IRDA norms, the damage covers up to Rs 7.5 lakhs. The lower the coverage, the lesser the premium.
  • Personal Accident support for Owner
    In an accident, in case of death or injury to the owner-driver of the vehicle, then the third party insurance can compensate for this death/injury up to maximum of Rs. 2 lakhs. The compensation limit is given below:

    • If the nature of injury is death, then the compensation is 100%.
    • If the nature of injury is loss of eyesight or two limbs, then the compensation is 100%.
    • If the injury is loss of 1 limb or 1 eye, then the compensation is 50%.
    • If the injury makes the person completely disabled in other parts of the body, then the compensation is 100%.

     This coverage is subject to the below conditions being met:

  • The driver-owner is the actual registered owner of the vehicle.
  • The policy is named for the driver-owner of the vehicle.
  • The driver of the vehicle has an effective license according to the provisions of rule 3 of the Central Motor Vehicles Rules 1989, during the accident.

What does it not cover?

There are a few exclusions that are to be understood under the third party car insurance.

  • If the driver of the vehicle is not the owner of the car, then it is not included on the cover.
  • Any sort of direct or indirect occurrence due to radioactive contamination or nuclear weapons is not covered.
  • Damage or loss or liability caused by war, invasion, etc. is not included.
  • Any accident or loss which is not in the specified geographical boundary won’t be covered.
  • Claims arising out of contractual liability.

The above-mentioned features are common exclusions. For more information, you can refer to your car insurance documents.

Points to keep In mind while raising a third party car insurance claim 

Unless you are aware of the basics, raising insurance claims can be a stressful process. However, if you stay informed about the details of the process, you will be able to handle any issues that may arise. The points to keep in mind while raising a third party car insurance claim are-

  • Lodge an FIR report in case of an accident, along with which you will also need to inform the insurance company. Without these two steps, a claim settlement process won’t initiate.
  • The third-party needs to provide valid proof to prove the mistake of the other party.
  • It is advised to settle small losses and minor damages outside court, otherwise, it takes up a lot of time in proceedings.
  • There is no set limit on the coverage of personal damage faced by the third party, while for property damages, the maximum coverage is INR 7.5 lakhs.

When is third party car insurance better than comprehensive coverage?

Third party coverage offers only partial coverage for repairs and hospitalization (with coverage for only third parties and nothing for self). On the other hand, comprehensive coverage offers protection for both third parties and for self. Hence, you may be wondering when Online Car Insurance will be a better choice than comprehensive coverage. Here are some reasons when a third party insurance will be a good choice:

  • When the vehicle value is very low
  • When you don’t need coverage for damage to your own car or own bodily injury.
  • When you can bear costs for your own car damage without the need for any coverage
  • In cases where there is a hypothecation, the financer mentions in the agreement that till the time the loan is not repaid, the customer cannot go for a TP only policy. Thus it becomes compulsory to take a comprehensive policy. We strongly recommend extending third party coverage to be comprehensive coverage so that you can get total value for money on the premium you pay.

 

 

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