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Know The Scope Of Coverage Third Party Car Insurance Offers

Explore the protections, limitations, and benefits encompassed within this type of insurance policy for vehicle owners.

  • 27 Feb 2018
  • 3 min read

A road accident is a common occurrence; be prepared, know how to lessen your burden in case of a mishap

A third party car insurance safeguards the person involved in an accident, who is not the owner of the vehicle involved in the accident. It covers all costs towards the medical expenses incurred towards treating the injury inflicted in the accident, disability or death. It also gives the owner of the vehicle a certain peace of mind that in case of a mishap on the road, a pre-existing solution is available to him or her to mitigate the situation.


The Regulation

Opting for a third party car insurance would protect you in a situation where while driving your vehicle you have injured a third person on the road. The Motor Vehicles Act, 1988 mandates that every vehicle owner must opt for an insurance cover before driving their vehicle on the road and says that all cars without this insurance are illegal to drive as per the law.


Limits Up To Which Third Party Car Insurance Is Offered

Third party insurance would compensate for injuries incurred by the victim of an automobile accident. Compensation is also allowed for disability, death and damage to property caused by the insured’s car.

Various regulations offer different third party compensations. Hospitalization and medical costs are offered in cases of injuries. If the victim is permanently disabled, compensation offered is higher than a lesser injury. In case of the death of the injured, the compensation is the greatest and is made to the surviving beneficiaries of the deceased.

Also read:

Special Cases

If the third party involved in an automobile accident suffers damage to his or her property, the maximum compensation offered is ₹7.5 Lakhs. If a court decides that the victim deserves a higher compensation, or if such an agreement is reached between the vehicle owner and the third party, the insurance company is not liable to pay the extra amount; in such cases the vehicle owner settles the claim.


Why Obtain A Third Party Car Insurance?

None of us wish to be in a situation where we have to make a claim on our car insurance. However, it is better to be prepared for a road accident using a third party insurance because such mishaps are not uncommon, and an insurance would prove to be a blessing in the crisis.

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