What is Third Party Car Insurance?

When someone meets with an accident they not hurt themselves and damage their car, but there are chances of hurting someone else and damaging their property. Due to this reason the government had made it necessary for all vehicle owners to have a valid third party car insurance at all times.

Third party car insurance provides protection from any legal liability which arises due to damage to third person or party during an accident. The damage can be to any property or an injury, disability and death to a person and all these are paid for by the insurance company. This saves any kind of a financial liability against a third party in an accident.

The government of India as per the Motor Vehicles Act of 1988 has made it compulsory for all vehicles in India to have a third-party insurance. It is thus illegal to drive a vehicle which does not have a valid third-party car insurance policy.

Basics of Third-Party Car Insurance

Third party car insurance is a simple thing to understand as long as one knows the coverage. Some of the things that are covered are:

  • In case of injury or death of the third party the legal liability is unlimited. Death compensation is provided to the family of the third party by the insurance company who loses his life in the accident. It is the responsibility of the Motor Tribunal to decide the amount of compensation depending on the effect the incident will have on the family and his earning capacity.
  • All injuries are covered in the policy in case the third party gets hurt in the accident.
  • The loss suffered by the third party due to a partial or total disability in the accident is covered by the insurance company
  • If any property is damaged in the accident, the losses are paid for by the insurance company. The cap put on the compensation by the IRDA for the loss of property is INR.7.5 lakhs. There is an option to lower this coverage which will also help in reducing the premiums.
  • Third party insurance also provides accident cover to the driver of the vehicle provided the driver is the registered owner of the vehicle and is the insured named in the car insurance policy.

Best Third-Party Car Insurance

There are many car insurance companies in the market today which offer third party car insurance. Some of these are:

  • ICICI Lombard Car Insurance: ICICI offers hassle free and a very customer oriented third party car insurance policy. They offer various features which make the policy one of the best ones in the market today. With a good claim settlement ratio, ICICI has set very high standards in the field of third party car insurance.
  • Bajaj Allianz Car Insurance: The third-party car insurance by Bajaj Allianz is a very transparent one with easy documentation and rich features. The company has a very customer centric approach which makes it a great option as the claims settlement process becomes easier and less hassle free. The policy can be bought and renewed online making it very convenient for the busy people.
  • Bharti AXA Car Insurance: The company presently has one of the highest claim settlement ratios in the country and the policy by the company is also one of the best as it is made keeping in mind the feedback of the customers. The claim settlement process is simple and the customer service is also of exceptional standards. The company is undoubtedly one of the best general insurance companies in the country and this makes their third-party car insurance one of the most sought out ones.
  • Royal Sundaram Car Insurance: The company has been in business since 2001 and has designed its policies keeping in mind the expectations of the customers. The policy offers a stress-free policy with some of the best features.

Third party car insurance is a must have policy for any car owner in the country today. Though most people buy the policy because it is mandatory by the government; but there are many advantages of having one. The most important reason is that avoids any financial stress in case the car meets with an accident causing damage or injury to a third party. There are many insurance companies in the market today which offer third party car insurance policies. A careful comparison must be done for each of them to ensure that the best policy is bought which has no issues at the time of claim settlement.