Third party cover will come to your rescue

Posted by sanjay on October 7th, 2016

In India, under the provision of Motor Vehicles Act, 1988, it is mandatory that every vehicle should have a valid insurance to drive them on the road. Any vehicle used for social, domestic and please purpose needs to be insured. There are two types of insurances being sold in India i.e Third party and comprehensive insurances.

In a third party insurance policy the insurance company agrees to rescue the insured person financially upto to a certain limit, if he or she is sued or held legally liable for injuries or damage done to a third party in terms of property loss, health or life damage. The insured is one party, the insurance company is the second party and the person you injure who claim damages against you is the third party.

A comprehensive cover is extensive and includes damage of car, theft of vehicle, third party legal liability and personal accident cover. The policy coverage can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

The number of vehicle accidents such as bike or car accidents has shown a steep rise in past few years. Along with this increase the risk of accidents causing damage to the driver or the pillion rider has also increased on roads and surroundings. At times, their might even be a death occurred if the accident is major. Thus, during such crisis time it is the third party policy that will provide legal and financial security to the policy holder for any physical injury, death or disability to the third party or damages done. It’s the third party policy that brings you protection against unforeseen circumstances, and peace of mind. Purchasing or renewing third party motor insurance online is the latest craze amongst the people in India, especially among the youngsters who often stay busy in their work life.

Motor third party insurance or third-party liability cover is the minimal cover protection individual needs to have to drive their vehicle on road. It is referred to as a 'third-party' cover since the beneficiary of the policy is someone other than the two parties involved in the contract i.e. the insured and the insurance company.

It represents any other form of damage caused other than the insured person’s motor. The driver of the vehicle and the passengers in it, or any pedestrians or third party property, which are likely to get affected by the vehicle are covered by the third party cover.

Whenever there is an accident there is a high chance of property being getting damaged on the road such as building, stalls, etc. So if your property is damaged by a third party while driving you can either go for an out-of-the-court settlement or a settlement through insurance. If you feel that the damage caused and the expenses incurred thereby are more, a proceeding through insurance claim can be initiated.

Although, the basic version is compulsory, there are many other customized options in a third party cover to choose from. Apart from insuring driver and co-passenger, you have the option of insuring additional passengers in insurance policy. There is also a provision to opt for a higher sum assured for the passengers or third parties. Third party insurance is the minimum insurance coverage that is mandatory as per law in certain cases like a motor insurance. Third party fund pooled is not administered by the insurance company, but mandated by law.