If you are reading this, it is most likely that you own a car. It is definitely a great feeling to drive around in your own car – may it be a cute little hatchback, an exotic sedan or a macho off-roader! But it is of utmost importance that you also have Insurance for your prized possession.
The Third-Party Car Insurance policy offers insurance for damages caused to property or life of any third party due to the vehicle that you own. This coverage is mandatory (Under Motor Vehicles Act 1988), which suggests that you cannot really drive around if you are not covered under this! The year 1988 definitely saw ‘justice for all’ – for Metallica and for car owners.
And what exactly is this Third-Party Car Insurance?
A third-party motor insurance policy is basically signed between two parties, the insured and the insurer. So, third party refers to the people who are neither the insured nor the insurer. They can be occupants of a different vehicle, co-passengers of another car, pedestrians, etc. Third-Party Insurance includes liability for bodily injuries or death of the third party in an event of an accident. However, you must remember the fact that this insurance policy will not offer coverage for any injury to you, death or damage to your own vehicle. It also does not offer coverage for your co-passengers.
If you are looking for an insurance cover that will protect you, your loved ones in the car and your vehicle too, then you must go for Comprehensive Insurance.
Things that are not covered under Car Insurance
- General wear and tear caused due to the ageing of your car
- Electrical or mechanical breakdown
- Damage caused by a person or to a person driving a vehicle with no valid licence
- Damage caused by a person or to a person driving under the influence of liquor or drugs
- Damage or loss caused due to nuclear risk, mutiny or war
- Claims that arise out of any contractual liability
Additional Reading: Car Insurance terms You Must Know
Third-Party Car Insurance Liability Average Premiums
- Ones that do not exceed 1000cc – INR 784
- Ones that exceed 1000cc but do not exceed 1500cc – INR 925
- Ones that exceed 1500cc – INR 2853
- Ones that do not exceed 75cc – INR 350
- Between 75cc to 150cc – INR 357
- Between 150cc to 350cc – INR 355
- Ones that exceed 350cc – INR 680
Things that you need to do during a third-party claim
In case of athird-party Insurance claim, where your car was involved, it is extremely important that the accident be immediately reported to the nearest police station. The next call that you make should go to your Insurance provider.
However, if you are the victim of the accident, i.e. someone else’s car was involved, then you should make a note of all the details of that car and inform your insurer.
How to ensure your claim is not rejected
- You must read the offer document carefully and understand the coverage details
- Fill in the details on the claim form with utmost attention
- Do not fail to adhere to the guidelines and norms of the Insurance policy
- Report any damage to the vehicle at the earliest when an accident happens
- Avoid any lapses in the policy – renew on time!