How to protect yourself financially during third party loss?

Posted by sanjay on December 28th, 2016

Imagine you’re  riding happily in your dream car and suddenly a truck may overtake and you may lose your balance and ramp up into someone’s property or person causing injury to them.  Firstly, you won’t be able to justify your point that it was the truck driver’s fault who left away and secondly, you will have to pay the expenses from your pocket.  Besides, you will have to bear the cost for your own car damage and physically expenses  if hurt. For the moment you’ll go into a state of shock after thinking about the costs incurred to all this. Therefore, owning a third party insurance will be the best financial help during such crisis time.

In India, it is mandatory to own at least a third party cover to drive your vehicle on roads. Third Party insurance will cover your liability  to others in case of accident, third party damage in terms of property or health.  It is one of the cheapest form of insurance cover. There is comprehensive cover as well that will take complete care of your finances during damage or health or life loss during the accident of third party or damage to your car and other natural perils.

Nowadays, online comparison sites are the best tools to get third party insurancequotes from several companies under a single umbrella.  They will present the most competitive quotations for you and do look at the policy wordings before you decide what suit you best. Compare your policy in terms of benefits and features, discounts and deals, renewal offers, flexible premium payment options and hassle free claims. Always have a thorough check of your policy, so you know exactly what you are and aren't covered for in the event of a claim.

You can purchase policies online at the comfort of sitting at your home or place of work.  All you need is a computer and good internet connection. Visit any of the website after comparison, fill-up relevant details, make your first payment and within a day or two the policy details will be mailed to your inbox. Most companies have come up with super cool apps that let you manage everything right from the policy purchase to premium payments, renewals to hassle free claim for your third party insurance.

Some salient features of third party cover:

Third party insurance is compulsory under the Indian traffic law. Beneficiary of third party insurance is the injured third party or property loss. The money is always paid directly by the insurance company to the third party (or his solicitor) and does not even pass through the hands of the insured person.

Until now, the premium for motor third-party insurance was calculated on the basis of a schedule of rates provided by the Tariff Advisory Committee, an arm of IRDAI, the insurance regulator. But IRDAI has done away with the motor tariff. The compensation to the victim is largely decided by the earning capacity of the accident victim. Some comparison sites already include features that make it easier to see a comprehensive quote.