Things to Know Regarding a Liability-only Car Insurance Policy

As per the Motor Vehicles Act, 1988 it is mandatory for any vehicle driven on Indian roads to have a third-party insurance policy. This insurance covers legal liability or damage that is caused to any third-party property or person other than the insured due to the fault of the owner of the car.

Things to Know Regarding a Liability-only Car Insurance Policy - Acko

When one buys motor insurance online, they follow the law and stay away from legal liabilities. The insurance company covers the car owner if any legal liability arises because of damage or injury to a third party. There are three parties involved in a third-party car insurance policy. The three parties involved are:

  • First party which is the insured person.
  • Second Party is the insurance company
  • Third Party is any other person affected by the vehicle

Who Can Buy Third Party Car Insurance?

As per the Motor Vehicles Act, 1988, it is mandatory for all vehicle owners to buy a third-party car insurance. Thus, any owner of a car or vehicle which is registered under the Regional Transport Authority of India is eligible to buy a third party insurance.

Inclusions Under a Third-Party Car Insurance Policy

  • Injury Claims

There is no limit to which injuries can be caused in an accident. Under a third-party insurance for your car, the cost of any injury that is caused to a third party is covered. Injuries of any extent are covered and the medical bills are paid by the insurance company, saving the insured from these expenses.

  • Permanent Total Disability

If there is any permanent or partial total disability to a third party in an accident caused by the insured, the third-party insurance policy pays the compensation. In disability cases like loss of body parts, the third party receives a compensation from the insurance company who pays on behalf of the insured.

  • Partial Disability

The medical expenses and compensation for any partial disability caused to a third party in an accident are covered under this policy.

  • Property Damage

If there is any damage to the property of a third person in an accident, the damages are paid by the insurer under this policy.

  • Death

Death compensation is provided by an insurance company to the third party’s family, if a third party loses life in a car accident caused by the insured. There is no limit to the coverage provided and depends on the age, profession, and the earning power of the deceased person.

Features of Third-Party Car Insurance

  • Faster Processing

As there is not a lot of verification, inspection or documentation involved, buying a third-party policy is easy and quick. Buying the third-party car insurance online is more time saving and easier.

  • Peace of Mind

Having a third-party liability insurance offers peace of mind. Possessing the policy is a mandatory requirement and the policy protects you from legal hassles.

  • Financial Cover

The expenses arising due to injury or death of third-party individuals or properties involved in the accident are covered under the policy. If not for the policy, you would end up paying a considerable amount of money from your pocket.

  • Not Expensive

A third-party liability insurance is cheaper as compared to a comprehensive policy. This largely comes down to two factors. Firstly, the Insurance Regulatory and Development Authority of India regulates the premium prices for third-party policies. And secondly, the policy offers relatively lesser coverage.

Third Party Car Insurance Online

A third-party policy is simple and easy to understand. Accidents can happen anytime and anywhere and can affect anybody. Buying the third-party car insurance online is easy and time saving and thus, there is no reason why it should not be bought. However, you must consider a comprehensive plan for extensive coverage while purchasing motor insurance online.

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