third Party Car Insurance – Dangers of Not Having One

  • February 3, 2018

Bought a new car and the celebrations are over! What next? It is time to get a ‘Third Party Insurance’ plan. Yes, there’s no escape from this one. In fact, this is the most fundamental insurance policy one must have. The policy is also mandatory for all vehicle owners in India. According to the regulations under the Motor Vehicles Act of India, it is not allowed to drive your car on Indian roads without one.

If you have been ignoring this insurance policy, think of the immense benefits it comes equipped with.

All you need to know is how to use these perks in real sense. As an owner-driver, you might not have had an opportunity to register a claim for Third Party Car Insurance. Of course, the credit goes to your safe driving or also good luck. That’s great! However, you may require using it as a pedestrian due to an accident especially when the other party is at fault.

In the event you meet with an accident leading to an injury to you or damage to your property, the Indian Motor Vehicle Law allows you to file a claim for reimbursement from the car owner involved.

Hassles? Well, there are hardly any hassles the claimant requires facing. Thanks to IRDA! The entire process of making claim under third party insurance has been simplified. Gaining knowledge about the process will help you with the process. The insurance plan will help you deal with possibilities that you may face. Also knowing the plan well will let you avoid any last minute complications.

Third Party Car Insurance

This insurance is also referred to as the ‘Act Only’ plan. One must have this insurance as a mandatory document to protect his/her vehicle, in the event of unforeseen eventualities.

Driving without Third Party Insurance – Repercussions You May Face

In the event you face an unforeseen event, having a third party car insurance plan assures that you are financially covered. This policy will compensate all expenses incurred in repair of damage. It will also help when your prized possession gets stolen.

These days, the risk cover is offered by a large number of reputed automobile companies. You may even avail it while purchasing a vehicle that runs on fuel and needs a valid license. In India, having a vehicle insurance plan is as important as a possessing a driving license to be able to drive. In case, you don’t buy one, you may end up paying a huge penalty.

Penalties You Must Pay

– Car owner requires surrendering his/her driving license for driving without a motor insurance.
– The registration of vehicle will face suspension.
– A fine is also levied on the car owner for driving without a valid insurance. One may end up paying INR 10,000 (may vary). A serving 3 months’ imprisonment/or both may be charged against owner/driver, depending on the situation
.

Third Party Insurance – What it Covers?

In general, a car insurance policy in India provides two primary covers:

– Third Party Cover
– Own-damage Cover

According to the Motor Vehicle Act 1988, using a car without valid third party insurance is an offense. This is also a punishable act. The cover and benefits of this policy include the following:

Cover for Permanent / Partial Disability, Accidental Injury and Death

In the event of an accidental misfortune resulting in injury, permanent or partial disability or death, the insurer (insurance company) compensates the total amount as approved by the court in its final verdict. Hence, under these circumstances, the compensable amount is fixed by the court at the time of resolving the case. Also the liability limit has for this cover is not pre-decided.

Property Damage

In case, the accident results in damage to the third-party’s vehicle (apart from bodily injuries to the third-party / permanent or partial disabilities due to an accident), the law allows them to register a claim against the car owner for compensation. A limit of up to 7.5 lakhs has been set by the IRDA (Insurance Regulatory and Development Authority) for third party property damage. However, policy holder can also restrict the cover of up to 6 lakhs, wherein a reduction may be applicable to the annual premium paid to avail third party insurance coverage.

Note: Although Third Party Liability Insurance cover offers benefits to the third-party only and ensures third-party liability coverage, it won’t help in case of damage or accident caused due to man-made or natural calamities.

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