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What Are The Benefits Of Buying A Third Party Car Insurance Policy?

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SUMMARY: Since third-party car insurance is legally required in India, it is frequently included in the main car insurance policy. A separate comprehensive vehicle insurance policy may also be added to a standalone third-party car insurance policy.

Many insurance companies provide personal accident coverage in their third-party car insurance policies. Along with personal accident coverage, some companies provide collision coverage (where the insurer pays the insured for damage caused by a collision, which is usually an accident) and comprehensive coverage with enhancements such as accessories cover, engine protection, zero depreciation cover, and so on.



Impatience when driving has been identified as one of the primary causes of road rage in novice and experienced drivers. The state of our country’s roads, inadequate infrastructure, and low usage of safety equipment contribute to the high number of deaths.

If you own a car, you should have appropriate insurance to protect yourself in an accident. The Motor Cars Act requires that all vehicles be equipped with at least third-party auto insurance. In these days you can get your car insurance online too. 

Why Should You Get Third-Party Car Insurance?

Is the most affordable insurance coverage available? It is also available for personal four-wheelers, two-wheelers, and commercial vehicles. The Motor Vehicles Act of 1988 requires it for all vehicles in India. Even if you do not use your vehicle frequently, it should be covered by third-party car insurance.

Apart from allowing you to comply with the law, third party car insurance provides much-needed financial protection against unintentional expenditures by a third party. You might choose third-party liability insurance if you have financial difficulties and need to cover your automobile on a tight budget.

Eligibility for third-party auto insurance

If you have a valid driver’s licence and a registered automobile with the regional transport authority, you can purchase third-party car insurance for it.

Advantages of Third-Party Car Insurance Policies

  • Legal protection and financial assistance are provided.

Third-party automobile insurance policies cover the insured person’s legal duty to any third party in the event of death or incapacity and any loss or damage to third-party property. The legal and financial burden is taken care of in such a case. Though the immediate beneficiary is a third party rather than the insurer or the insurance company, it is the most important benefit that third-party car insurance provides for the driver/owner of the motor vehicle engaged in such situations.

  • It provides peace of mind

When coping with a stressful circumstance entirely dependent on financial payments, third-party automobile insurance plans provide peace of mind. As a result, rather than worrying about such unplanned costs, the attention is solely on the immediate release from stress and coping with the situation. Get your car insurance online

  • Third-Party Car Insurance is a simple and quick process

Third-party car insurance plans are widely available and simple to purchase or renew. They may also be purchased or renewed online, which is a quick and straightforward procedure when selecting third-party car insurance. As a result, it is easily accessible to anyone at their leisure and convenience.


H2: Inclusions in Third-Party Liability Insurance:

  • A third-party car insurance policy protects you from third-party losses caused by the covered vehicle in an accident. Injuries, death, and property destruction are among the losses.

Think about the scenario: If your car, which is insured, meets with an accident where the other vehicle is majorly damaged. The individual who sustained the damage can then file a claim for payment under your automobile insurance policy. Your insurance company is obligated to compensate for the third party’s losses.

  • Third-party liability insurance is included in all automobile insurance plans in the nation. It functions as a safety net, shielding you from the unusual and highly unpleasant case of an accident in which someone else reports a loss.
  • Some insurance companies now also offer personal accident coverage for the insured vehicle’s owner-driver and third-party liability coverage. From the insurer’s standpoint, this completes the coverage provided by liability-only insurance and makes it more appealing to the consumer.

Exclusions from Third-Party Liability Insurance:

It is critical to understand what is excluded from your automobile insurance coverage so that you may make informed decisions during a claim. Following this, it is critical to examine your policy paperwork properly.

The following situations are often excluded from third-party car insurance policies:

  • Intoxicated driving: Damages caused by a motorist under the influence of drugs or alcohol are not covered by third-party car insurance.
  • Staged crashes: If an accident were purposefully performed/staged, it would not be covered by insurance.
  • Illegal activities: If the motorist were underage, driving without a valid licence, or driving on the wrong side of the road when the accident occurred, the insurance company would deny the claim.

If the insured private automobile were being utilised for business reasons at the time of the accident, the insurer would deny the car insurance claim.

  • Car thefts and damages: Third-party liability insurance does not protect the insured vehicle or its owner-driver in the event of an accident. Theft of the insured vehicle is not covered either.
  • Other reasons: If the vehicle’s motor insurance expired during the accident, the insurance provider would not honour the claim. Furthermore, the liability-only plan does not cover normal wear and tear of the vehicle with age, mechanical or electrical failures, consequential damages, or driving outside of the stated geographical limitations.

How are Third Party Car Insurance Claims Handled?

A third-party car insurance claim is divided into three parts:

  • Notifying the authorities and filing an FIR. The police station should also be contacted for the charge sheet.
  • Applying with the Motor Accident Claims Tribunal (MACT). This is possible with the aid of a lawyer. The lawsuit should be filed at the nearest court to the accident scene or the injured person’s household.
  • Deciding on responsibility and settling the issue in court.


In conclusion, a Third Party Car Insurance Policy offers many important benefits that can help protect your financials and ensure you are covered in the event of an accident. It is a cost-effective way to protect yourself and your car from expensive repairs and medical bills. It also provides coverage for other drivers and their vehicles in the event of an accident. Therefore, it is worth investing in a Third Party Car Insurance Policy. Get your car insurance online


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