What is Third Party Insurance? What are its Benefits?

Posted by Hema Ghosh on April 20th, 2018

Also known as liability insurance, third party insurance is bought by the first party (insured person) from insurer or Insurance Company (second party) for protecting the damage done to the vehicle of the third party. The first party or the one who buys the insurance is not liable to pay for the loss incurred.

Third-party liability coverage is of two types. First is the bodily injury liability that covers the costs that results from the injuries to a person met with an accident by the car of insured. These injuries costs include the expenditures like lost wages, pain, hospital care etc. Another one is property damage liability. The second category covers all the damages resulted from the loss of property. It includes any damage sustained by the car, cost of repairing and replacement of any part of the vehicle.

Top Benefits of Third Party Motor Insurance:

Provides the Financial Assistance and a Legal Cover:

This insurance policy covers the legal liability of the policy holder both in the case of death or disability to the third-party. Any loss or damage of any kind done to the property of the third party is covered under the insurance. Along with the financial burden, the legal burden is also taken care of by the insurer.

Ensures a Complete Peace of Mind:

Third party auto insurance policy brings a complete peace of mind to the insured. Dealing with the traumatic situation both legally and financially is very painful. Once you are insured, you can heave a complete sigh of relief as everything will be taken care of by your insurance company. You just need to recover from the immediate stress of the accident.

Procuring it is an Easy and Fast Process:

These policies are easily accessible. You can buy them easily online or renew them at a click of button. They can be renewed online. It is a quick and very easy process that can be done conveniently.

It is Cost-effective:

The inclusion of liability insurance in the overall car insurance policy either as a compulsory part of the main plan. It is very cost-effective both in terms of the premium and overall financial cost.

Available Easily Round the Clock:

Unlike the other insurance policies which are limited to only the conventional offline renewal method. Third party car insurance policy is easily available online round the clock and you can purchase it from anywhere, anytime.

Third party insurance which is also referred to be “act only” cover also is a mandatory requirement under Motor Vehicles Act. It is called third party cover since the beneficiary of the policy is the third party (the party other than those involved in this contract that is policy holder and the insurance company). The policy also covers the death or disability of the third party. It does not cost as much as comprehensive insurance policy cover. Along with the liability coverage, some of the insurers offer personal accident cover and some render coverage for collisions. Make a choice with care and after a thorough research.