Whenever you buy Vehicle Insurance you get a choice to choose between Third Party Insurance and Comprehensive Insurance. Most of the Persons make a Big Mistake by Choosing the Wrong Insurance just Because of 1 Single Reason that What is Third Party Insurance? As Most People think that there is no difference between Third Party Insurance and Comprehensive Insurance.
But They are Wrong! Yes, you Read it Correctly which means that there is a Huge Difference between Third Party Insurance. So to make you aware here in this Blog Post we are going to cover all about What is Third Party Insurance, Should you Buy it, What are the advantages or disadvantages of Third Party Insurance and so more.
Now climb the stairs of Awareness to Insurance.
What is Insurance?
Insurance is a Contract Between Two Persons to manage Future Financial Losses or Risk. The Two Persons Involving in Contract is Policy Holder(Person who Buys the Insurance) and the Insurance Company(The Insurance Company). In the Contract of Insurance, the Policy Holder (Insurance Buyer) pays a pre-determined amount to the Insurance Company intending to get Protected from any Future Financial Losses.
For Example: Let You had Buyed a Full Claim for Maruti Car Insurance and unfortunately you meet with an accident and your car is damaged then it will be a Financial Loss for You. As your car is damaged. Then you can Request for Claim of Insurance from your Insurance Company as you had Buyed the Insurance policy intending to Recover Future Financial Losses.
So this was all about Insurance now it’s the time to go in-depth in the World of Insurance. So here we move towards what is Third Party Insurance. But make sure that you share us with your friends and family so that he or she can save money.
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What Is Third Party Insurance
There are 3 Persons Involving in Insurance that are First You the Person who buyed the Insurance, Second the Company which is providing you with an Insurance Service and Third the Person who gets contact with your Vehicle Contact. So the Third Party Insurance works like that if you are driving the car and you by mistake meet with an accident and you damaged the Third Person House. So at that time, it’s your responsibility to pay the owner for House Repairing costs. That Cost is near too compulsory to pay.
So at that time, Third Party Insurance is used to pay off the Liability incurred due to an accident. This is the Power of Third Party Insurance as sometimes the loss to a third party can be of Big amount that is very hard to pay. Indian Motor Vehicle act also recommend having Party Insurance. In Short…
What Is Third Party Insurance – Third-Party Insurance is Insurance that is used to cover the Third Party Liability that occurred due to an accident. Third-Party Insurance is also recommended as a Mandatory Requirement for vehicles by Indian Motor Vehicle Act.
For Example: If you are having a Maruti Car with its Third Party Insurance from Maruti Insurance. Just imagine you are driving your car and meet with an accident and you damaged someone’s car. Then you are responsible to pay the owner to repair it and hence it became a liability for you. Now at that time, Third Party Insurance will help you to pay your Liability off.
Video – What Is Third Party Insurance
Is it Compulsory to Buy Third Party Insurance?
No, it’s not compulsory to have third party insurance as you are having a free choice between First Party Insurance and Third Party Insurance. But if you need advice on which one to choose then we as well as our Indian Motor Vehicle Act Recommend you to have a third Party Insurance as it can be used to get rid of any third party liability that incurs during an accident.
Coverage Covered with Third Party Insurane
As Third Party Insurance is Most Focused on Third Party Claims as a result there is some Coverage that you needs to Know Before Choosing Third Party Insurance.
- Third Party Liabilities: Third Party Liabilities are Those Liabilities which have to be paid to the Third Person for Causing Death or Damage to that Property. As Third Party Liability is Occured due to Insured Car as a Result the Owner has to pay that Cost. Third Party Cover Pays Liabilities for Below Mentioned Liabilities:
- Property Damage
- Vehicle Damage
- Third Person Injury
- Third Person Death
- Personal Accident Cover: Some of the Insurance Companies Provides a Personal Accidental Cover with Third Party Insurance. In this the Insured Car Owner is Granted a Claim on His or her Personal Injury or Death Cover. If ByChance the Insurer dies then its claim is granted to its Nominee.
What is Not Covered Under Third Party Insurance
As a Third Party Insurance is Main Focus on Third-Party Liabilities. As a result, there are a lot of things that are not covered under Third Party Insurance. So Below are some of those which are not covered:
- Unauthorised Usage – If you are Using your Insurance Vehicle for illigeal activites, Racing e.t.c then you are not going to get the Third Party Claim. As its unauthorised and Properly Mentioned in the Insurance Policy.
- Unauthorised Driver – This is the Most Important Point that you need to understand. As if someone other than the Car’s Real Owner is driving the Car then You are not going to get the Claim.
- Geograpic Limit – There is a Geograpic limit on Insuranced car in which if Insured Car goes outside the Geograpic Limit and Made any Accident then in that situation there will be No Claim Granted.
- Drunk Driving – If the Car owner is drunked and made any accident then there is near to no chances to get the Claim.
- Own Damage – If ByChance your Car meets with any natural Disaster or gets theft then you are not going to get the claim. As its not a Third Party Liability its a Personal Loss.
- Man Made Disaster – If your vehicle meets with a Man made disaster then you are not going to get the claim. Man made disaster can be War or any War like activites.
- Invalid Licence – If the Car Owner is not hvaing a Proper Licence with him or her and made any Accident then the liability will be your Loss. Third party Insurance is not going to help you in that situation.
Note: These are the situations mentioned under What Is Third Party Insurance. But there are a lot more other situations where you aren’t going to get the Claim.
Third party insurance benefits
As you know if you ask anyone about which insurance to choose then everyone recommends you to go with Third-party Insurance. As there are a lot of benefits of having Third Part Insurance. Now to know its benefit below are some important benefits that you receive with your Third Party Insurance Cover.
- Covers Third Party Liabilities
- Offers Leagal Covers
- Cost-Efficent Policy
- Ensure Peace of Mind
- SO MORE
How to claim a Third Party Insurance
Now Finally we reached our Main point that how can you make a Claim in Third Party Insurance? To be successful in making claim make sure you read all the steps carefully.
Step 1. Application
The Application is made By the Legal Hire of the Departed against the Owner of the Vehicle.
Step 2. FIle an FIR
After Filling the Application Form you have to visit your nearest Police Station. There you have to file an FIR with the Prof or Victim. Then You should have a copy of the FIR as it has to been attached with the File of Claim Request.
Step 3. Get Contact with Motor Accidents Claims Tribunal
After Filing FIR you have to Register the Case with Motor Accidental Claims Tribunal.
Step 4. Get the Insurance Claim
At Last, if your Insurance Claim is Approved then you will receive the full amount of Claim approved by the Court in its FInal Verdict.
Conclusion on What is Third Party Insurance
At last of What is Third Party Insurance we would just like to say that you should have Third Party Insurance for your Vehicle. As if you meet with an accident with Third Person then it’s a Situation to make the compulsory payment. In that Situation, Third Party Insurance will help you to pay off the amount.
We Wish you liked our article on What Is Third Party Insurance is. If Yes, then make sure to go with other articles too.