Third Party Insurance is a policy which is bought for a vehicle protection against the claims of another, where any damage or losses that have occurred due to a third party like a driver or someone else will be covered under the Insurance.
Having an Insurance cover to vehicle (Bike, Car and other) is compulsory according to the regulations of Vehicle Motor act of India, and there are different types of insurance policies that are available for protection of vehicles and Insurance is preferred as it is affordable with a range of premium amounts under budget.
Benefits of Third Party Insurance
- It is must to know that Third Party Insurance is different from comprehensive Insurance for Vehicle, if thus having this insurance will protect the owner from any legal liabilities which include bodily injury, death or damage to third parties.
- Damage to property, vehicle or any will be considered as third party and any financial liabilities due to damage will be taken from the insured policy.
- If your car value is low or it has crossed a term of 5 years then it is advised to get 3rd Party rather than going for comprehensive insurance.
- It protects you with less premium and having less value car won’t disturb you much in case of any accident.
- It protects you during the time of accident by fully assuring to provide liabilities laid on you under the insurance policy and help you to have financial stability.
Exclusions of Insurance
Any damage to your vehicle or belonging will not be covered under 3rd Party Insurance including damage or stolen vehicle, and this policy does protect you from liability from any one but any damage to your side should be under your risk.
Having this Insurance for a new car or branded one, is not preferred as it won’t cover any damage to your vehicle or its costly accessories.
- Which is the best policy to get Third Party Insurance or comprehensive Insurance?
Third Party Insurance and comprehensive insurance policy does have their own importance based on age and cost of car, and If your vehicle is a low-cost model with more than 5 years then Third Party Insurance is preferred to be opted and it is preferred to get comprehensive insurance for a new model vehicle.
- Does having Third Party Insurance Policy Enough?
Yes, as per the Motor Vehicle Act every vehicle must have an insurance policy which is mandatory for protection of both the parties, and thus 3rd Party Insurance being less premium and covering the third damage does cover the regulation of Motor vehicle Act.
- Does Comprehensive Insurance include Third Party Insurance Policy Terms?
Yes, Comprehensive Insurance policy does cover damage or loss due to accidents for both the parties, and the compensation to third party damage including any damage to Vehicle and its accessories will be covered under comprehensive, where the terms of 3rd Party Insurance are fully included in Comprehensive policy with having a higher premium value for added benefits.