What-is-Third-Party-liability-Insurance-for-cars

What is Third Party liability Insurance for cars?

What is Third Party Liability Insurance for cars?

Third-Party Insurance is a mandatory requirement for all car owners in this country. It is a type of insurance where the insurer offers damage cover to the third-party vehicle or physical injury caused by your car. The policy does not provide any damage cover to the policyholder.

How does Third Party car Insurance work?

Suppose you meet with an accident where your vehicle has caused damage to a third party vehicle, then the insurance company bears the cost of damage to the third party vehicle. The only catch here is that the policyholder must inform the insurance company before filing a claim.

Once you file a claim, the insurer appoints a surveyor who asses the damages and verifies the cost of repairs. Based on the results, the insurer approves or rejects the claim.

Importance of Third Party car Insurance

  • Having third-party insurance is statutory as per the Motor Laws of India
  • Despite being a legal obligation, this policy will give peace of mind to the policyholders that they have financial protection in the event of any unfortunate accident
  • It protects their finance against accidental risks

Information gathered from the accident spots

  • Describe the accident along with the date and time
  • Describe the presence of your near the accident spot
  • Describe the details about the damage to the third party vehicle and injuries sustained by the rider
  • Details about the witnesses
  • Photographic evidence from the evidence

Features of Third Party car liability Insurance

  • It offers protection against the legal liability that may arise due to the policyholder’s involvement in the accident which may cause damages to the third party vehicle or loss of life.
  • Third-party insurance does not offer any protection to the car
  • The premium for this type of insurance is very affordable

Exclusions of Third Party Insurance

  • If the person is found to have driven under the influence of alcohol or drinks
  • If the accident was found to be deliberate
  • If the vehicle was stolen
  • If the driver is found to have driven the vehicle without a valid license or an RC Book
  • If the vehicle was used for any illegal activities

Procedure to file a claim

  • Immediately after the accident, the policyholder must inform the Insurance company about the accident within the stipulated period by the insurance company
  • Must file an FIR Copy at the nearest police station
  • File for a claim with the insurer filling in all the relevant details
  • Based on the information provided, the insurer will send a surveyor to assess the extent of damages and estimate the damage cost
  • After the assessment, the insurance company settles the claim

You can always Buy/Renew Third Party Insurance for your car in a few steps at Fincover. For any purchase-related queries regarding car insurance, feel free to post your requirement below, our insurance team will contact you shortly.

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