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Is compulsory third party car insurance permitted in India

Ramita had always been excited about even the thought of buying her first car. However, she wasn’t aware of the fact that motor insurance is mandatory. Fortunately, her friend asked her about the car insurance she had purchased one day which led to Ramita knowing the importance of car insurance in India.

Had she been driving around without car insurance, Ramita would have faced serious legal issues. Thus, getting third-party car insurance is necessary to drive on Indian roads. Let us get to know about third-party car insurance some more.

What is Third Party Car Insurance?

Third-party insurance is an insurance policy that covers any legal liability which may arise in an accident. Automobile insurance is one of the most common types of third-party car insurance policy. Compulsory third-party insurance offers coverage against claims of damages and losses acquired by a driver who is not the insured, the principal, and not included under the car insurance policy. Ramita would have been in huge financial and legal distress had any accident happened when she didn’t have any third-party car insurance.

Theft or damage of a car is not covered in a third-party car insurance policy. Also, zero depreciation, roadside assistance, and accessories cover are not available on third-party car insurance policies that cover only personal accidents. All claims referred by the insurer for third party car insurance claims against them to professional insurance. The insurer does not include into any agreement or agree to settle the claim outside the four-wheeler insurance policy without any approval.

Benefits of Third-Party Car Insurance

Here are the benefits of a Third-party car insurance policy that compelled Ramita to buy it apart from its necessity:

Legal protection and financial assistance: In case of death or disability of the third party and in case of damage of the vehicle or to the third-party property, third-party car insurance policy provides you robust legal and financial protection. Make sure that in case of a third-party claim is taken care of your all legal and financial liability. 

Peace of mind: In case of any damaging or unfortunate event, a third-party car insurance policy gives you mental peace. Hence, you will get stress-free and seamless assistance in dealing with the incident instead of worrying about the expenses.

Easily available: Third-party insurance is easily available and easy to renew or buy online because of their legal mandate. You can avail of the benefit at your time and convenience.

Cost-effective and beneficial: A compulsory third-party insurance plan offers highly affordable premiums that easily suit you. 

What Is The Importance Of Third-Party Car Insurance?

In India, compulsory third party insurance is mandatory for every vehicle running on the road. Under the prevailing laws driving a vehicle without a valid insurance cover can lead to a severe penalty. Moreover, a four-wheeler insurance policy is legally mandatory and also provides you the security and comfort that you have financial assistance in case your vehicle reaches an accident or suffers damages of any kind.

Compulsory Third party insurance, especially a car insurance policy is important for you to ensure that you are driving without any risk in India. This is the main reason, third-party insurance is compulsory by the Motor Vehicles Act. You can buy third-party insurance easily or your car is included in the comprehensive insurance. However, you need to be careful before buying your policy to check the car insurance online quotes.

How does Third party Car Insurance work?

Firstly, any damage that happens you will have to intimate the insurance company. It is done by calling the customer care number. In most cases, the insurance company plans to take the damaged vehicle to the nearest garage. You will have to submit the following documents for making a claim:

  • Duly signed claim form
  • Copy of the driving license
  • First information report (FIR) copy
  • Copy of the registration certificate (RC)
  • Policy document

How to claim Third Party Car Insurance?

  • Record the registration numbers of all vehicles involved in an accident.
  • For witnesses, note down the name and contact details.
  • In an accident, inform the nearest police station.
  • Inform about the accident to an insurance company.
  • Submit the car insurance claim form with a signed, police FIR copy, Driving License copy, policy copy, and an RC copy of the vehicle

What is covered in Third Party Car Insurance?

These are covered in Third Party Car Insurance Policy-

  • Injury to the third party
  • Death of the third party
  • Property damage suffered by the third party
  • Legal liabilities

What all is not covered in Third Party Car Insurance?

Here are not covered in Third Party Car Insurance- 

  • Own damages
  • Driving under the influence of substances
  • Policy geographical limits outside claims 
  • War and nuclear operations
  • Unauthorized use of vehicle
  • Driving without a valid license

    FAQs

    1. Why is third-party insurance crucial?

    Third-party car insurance is crucial because it is compulsory by the law for all vehicles driving on the road to have a third-party insurance policy. Moreover, a third-party car insurance policy is financially secure against any damage or loss of property of a third party, death, or bodily injury caused to the third party.

    2. Is there third-party car insurance necessary?

    Yes, third-party insurance is necessary for all vehicles driving in India as per the Motor Vehicles Act of 1988.

    3. What is third-party insurance?

    Third-party insurance is an insurance policy that protects you against financial liability in case of third-party loss, damage of property, or any third-party death or bodily injury.

    4. What are the features of third-party car insurance?

    Following are the damages that a third-party car insurance policy protects against:
    Any damage of vehicle or loss of property of the third party
    Anybody injury induced to the third-party
    In the death of the third party in an accident

    5. Is Third Party Car Insurance enough?

    No, It is best to purchase a comprehensive car insurance policy in place of a third-party car insurance cover.

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