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What Does Third-Party Insurance Cover?

Get a comprehensive understanding of third-party insurance coverage, outlining what it includes and how it applies in different scenarios.

  • 20 Nov 2023
  • 3 min read
  • 98 views

Third-party insurance is essentially a legal requirement to be able to drive your vehicle on the road. It typically offers you a form of liability coverage that safeguards you in case someone lodges a claim against you for damages or losses. While you might not always need it, in situations where it's necessary, it can be your lifeline, guarding you against the threat of financial setbacks. So, let’s look into what third party insurance covers.

 

What is covered under third-party car insurance?

So what does third party insurance cover? We’ve provided a list of everything that this insurance covers below:

  • In situations where you're responsible for causing accidental harm to a third party's property, there's no need for you to fret about the expenses. Third-party insurance steps in to cover the damages incurred by the affected party.
  • In the unfortunate event that an accident you're involved in leads to the death of a third party, your insurance takes care of the resulting liability. Claims in these circumstances are evaluated through Motor Accident Claims Tribunals, which determine compensation based on the impact of the tragic loss and the earning potential of the deceased (up to INR 7.5 lakh).
  • Accidents sometimes result in disabilities. If the third party suffers from partial disabilities, like fractures, which are expected to heal over time, the insurer provides coverage for necessary medical expenses. On the other hand, in instances of permanent disability, the insurer offers a predetermined sum to the affected third party.
  • Regardless of the severity of bodily injuries sustained by a third party, medical coverage is extended to typically cover all types of injuries.
  • Third party insurance also covers legal expenses which arise while defending third party lawsuits related to the accident.

Also read:

Third-party insurance premiums are generally cost-effective. They are meticulously designed to cater to the diverse spectrum of vehicle owners. Your premium is determined by your vehicle's model and engine capacity. In comparison to comprehensive car insurance, third-party insurance policies offer significantly lower premiums. Acquiring a third-party insurance plan for your car no longer requires visits to insurers' offices. The convenience of online insurance purchase is now at your fingertips.

 

Conclusion

Third-party insurance is more than just a legal obligation when driving on the road. It's a safety net providing crucial liability coverage, shielding you from potential claims stemming from damages or losses. This coverage extends across various situations, from property damage to bodily injuries inflicted on others. It even steps in during unfortunate incidents leading to death or disabilities. With third-party insurance in place, legal expenses are eased, as the policy acts coves the costs while compensating third-party losses.

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