Third Party Liability Car insurance

What is Third-Party Car Insurance?
A Third-Party Liability Insurance offers financial cover to the insured person against any legal liability arising due to loss/damage caused to a third-party person or property. As per the Indian Motor Vehicles Act, a third party liability cover is mandatory under law and a basic requirement under a vehicles insurance policy. While choosing a car insurance policy, people often get confused whether to opt for a comprehensive car insurance policy or a third party car insurance policy. While a comprehensive car insurance policy offers overall protection against damages to your car as a result of incidents unrelated to accident / collision a third party liability car insurance offers cover against any legal liability arising due to damages or injury caused by the insured to a third party.

What are the Benefits of Third Party Car Insurance?



How Does Third-Party Car Insurance Work?
In order to better understand the concept of third-party car insurance, let us look at some terminologies. For example, in the event of a car accident, the parties involved are as follows:

First party: The insured person or policy holder
Second party: The insurance company
Third party: The person who claims for the damages caused by the first party

In an event where an insured person with a third party insurance policy is held legally liable for injuries or damage done to a third party, then his/her insurance company indemnifies the insured person. Any losses arising due to damages or injury caused by the insured to a third party or third party's property, are covered under the third-party insurance policy. In the event of a car accident, an insured person with a third party insurance policy is required to immediately inform the insurance company of the incident. If you were responsible for the accident (or the other driver believes you were responsible), it's almost certain that a claim will be made against you, which your insurance company will be expected to pay. So, for the speedy resolution of the claim it is of utmost importance that the insurance company is intimated about the accidental claim at the earliest This is how a third-party motor insurance works.

What Does a Third-Party Car Insurance Policy Cover?
A third-party insurance of car covers for the expenses incurred due to the following reasons:

Death or bodily injury to a third party
Damage to a Third-Party Vehicle because of the insured vehicle
Damage to third-party property to an extent of Limit - Rs. 7.5 Lacs

Calculate your premium easily with our Car Insurance Calculator.

What Does a Third-Party Car Insurance Policy Not Cover?
When opting for a third party only car insurance policy, you must be aware of what benefits you're missing out on. Let's take a look at what third party car insurance does not cover:

Cost of damages to a vehicle or the belongings in the vehicle in case of an accident
Cover for losses incurred if your car or belongings are stolen or destroyed
Coverage against damages to your own vehicle

It would be wiser to opt for third-party motor insurance if you own an old inexpensive car model, which is cheaper to repair. Has your car insurance expired?

Advantages of a Third-Party Car Insurance
There are several advantages of third-party car insurance. Let's look at the advantages that you will be eligible for in case you buy third-party car insurance:

Enables You To Drive Legally
Under the Motor Vehicles Amendment Act, 2019, it is necessary to insure your car if you want to drive on Indian roads. Getting basic third-party car insurance will protect you from hefty fines.

It Will Save You Time
You can buy third-party car insurance online with just a few clicks. This will save you time and money as you can buy this plan from the comfort of your home.

Coverage for Third-Party Person in case of Personal Damages
In case of an unfortunate event like an accident where you hurt someone physically or in severe cases, cause the death of the third person. Your third-party car insurance will provide coverage for the losses up to unlimited liability.

Coverage for Third-Party Property or Vehicle Damages
In case of an accident where it causes damage to ones vehicle or property, your third-party car insurance will provide coverage for the loss up to Rs 7,50,000.

Protects you in case of any physical injuries
In case you don't have a personal accident cover, you can opt for it with your third-party car insurance. This way you can protect yourself and your family financially in the case of permanent disability or death due to an accident.

Protects you from Unexpected Losses
Indian roads are congested, and you can see several cars on the roads. So, an unfortunate event like an accident that is bound to happen. If you opt for a third-party car insurance policy, you don't have to worry about the expenses that might incur in case of an unexpected accident loss.

Disadvantages of a Third-Party Car Insurance
Nothing is perfect, not even your third-party car insurance as it comes with several disadvantages as well. Here is the look at the disadvantages that you might face if you buy third-party car insurance:

Doesn't cover your own damages
Your third-party car insurance will not provide coverage against the damages and losses to your own car. To protect your car financially, you need to opt for a separate comprehensive car insurance policy from reputable insurers.

Doesn't cover damages due to natural calamities
No one can predict the future. Natural calamities such as floods, earthquakes, tsunami, etc. are some of the unfortunate events that no one has control on. In case your car is damaged due to a natural calamity, your third-party car insurance will not cover it. However, opting for comprehensive car insurance will surely protect you financially against the damage caused to your car due to both natural and man-made calamities.

You can't opt for add-ons
There are several add-ons that enhance the coverage of your plan, but you can only opt for them in case you buy a comprehensive car insurance plan and not with third-party car insurance.

Why Buy Third Party Car Insurance From Reliance General Insurance?
With a Reliance General Third Party Only Car Insurance Policy, you will get the following benefits:

Cover for causing accidental injury or death to the third-party
Cover for accidental damage to the third party's property
Easy Claims with 98% Claim Settlement Ratio