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Can we get car insurance online for third-party only?

Rohit is a 30-year-old businessman and is planning to buy a car. He has decided to take a car loan to partly financing his vehicle. His lender has asked him to buy third-party insurance. He has been told that it’s one of the must-haves to take his car out on the street. Rohit had heard about car insurance before but never really thought about third-party insurance.

Rohit approaches an auto insurance agent, who is present at the car showroom, for an answer. He explains that for any car to leave the showroom, it at least needs third-party insurance. This is mandated by Indian law as per the Indian Motor Vehicles Act, 1988. It is a type of insurance that provides for the financial liabilities arising out of bodily injury or damage to a vehicle or property to a third party. 

Rohit is also informed of other insurance policies available in the market like the Comprehensive Car insurance plan and Pay as You Drive plan. He now has an important decision.  

How Does Third Party Only Insurance Work?

When you drive your car, it may get involved in an accident and can damage the vehicle or property of the other driver. The matter can become more serious if the accident results in bodily injury or death of the other person or persons. In both cases, you are liable to pay compensation to the victim. It can be a substantial amount that can be hard for you to pay up. A third party only insurance makes the insurer liable to pay any compensation you may have to pay to the other party in such cases of a mishap.

In case of damage to the vehicle or property, the maximum compensation is capped at Rs 7.5 lakhs. However, in the event of an injury or death of the other person, the compensation is fixed by the Motor Accident Claims Tribunal that may look into the circumstances of the accident.

It is mandatory for every vehicle to have third-party insurance before they come on the street. It means you will have to buy this policy right on the dealership floor. However, you can carry out necessary research beforehand and can make a well-informed decision when buying car insurance for third party online.   

Can You Buy Third Party Insurance Online?

Yes, car insurance for third-party only can be bought online. It’s an easy process and can be finished in a few minutes. You can buy it from an insurance marketplace, or you can also go to the website of your favorite insurance company and complete the process of buying online third-party car insurance.  

Here is how the process usually unfolds:

Step1: Visit the website of an insurance provider like IIFL.

Step 2: You will find a section where it asks if you want to get a quote for your insurance needs. You can fill in the necessary information such as the registration number, registration year, model, and make of the car.

Step 3: You will be prompted to fill in necessary personal details such as your name and phone number. Once you complete this round, you will receive all the information and the third-party car insurance price.

Step 4: Based on your requirements and budget, you can choose and move to pay for the insurance online. 

Step 5: Make the payment through your debit or credit card to buy the policy. Your policy documents will be sent to your registered email id almost instantly. 

Step 6: You can request a physical copy of your insurance certificate and it can be delivered by the insurance company through a courier. This may take a few days to a week.

What to Consider while Buying Online Third-Party Car Insurance?

  • If you are buying online third-party car insurance for the first time, you should spend some time researching and comparing how different insurers have packaged their products in this space. It’s likely that there are significant differences in the offers from different insurers. You may also find attractive discounts from some of the insurance companies when you buy a comprehensive car insurance plan.
  • You should also not forget to read the fine prints and understand what the TPO from a certain insurer covers and what it doesn’t.

Why is Third Party Car Insurance Important?

A third-party car insurance policy is one of the most basic and affordable insurance covers. It provides protection against financial liabilities to the third party in the event of a car mishap. Though it offers only limited protection, a third-party only insurance policy offers a significant relief that all liabilities to the third party in a car mishap are covered. Depending on how serious the mishap is, the financial burden can be minor to heavy. In case of a huge financial burden, the third-party insurance takes care of all that is due to the other party in the accident.

Regarding other liabilities, there are different auto insurance plans that can specifically take care of individual aspects of liabilities in case of an automobile mishap. For example, comprehensive insurance plan offers coverage to the insured for personal injury as well as damages to the vehicle. It can also provide cover to other occupants in the car of the insured. Similarly, add-onsoffers protection to the vehicle against a wide range of situations in which the vehicle can get damaged.

Summing Up

The car insurance for the third party only is important protection without which you can’t and shouldn’t drive your car. You can buy online third-party car insurance within minutes. However, it’s not advisable to buy any insurance product in haste. You should do proper research about what a particular plan covers. Researching and comparing the premiums and where you can get some discounts can help you save some money in the process.

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