Buying a car is quite exciting but, do you know there are certain measures to keep in mind after you buy one? As we all know, life is unpredictable. When you drive a car, there are chances of having a minor or major accident, which can cause injuries or sometimes, even be fatal to the person inside or outside the car. To your advantage, however, this could be taken care of by purchasing, “Third Party Liability Car Insurance.”
Wondering what exactly is Third Party Liability Car Insurance? Well, it is basically a risk cover whereby in case of an accident, your insurer will compensate for all the damage caused to the third-party vehicle/property. As per the Indian Motor Vehicles Act, a third-party liability cover is a must and a basic requirement under a vehicle’s insurance policy.
How does it work?
To understand this policy better, let’s get to know more about the terminologies first. For instance, when you meet with an accident, the parties involved in this would be:
- First Party: The insured person (You)
- Second Party: The insurance company (Your Insurer)
- Third Party: The person who claims for the damages caused by the first party (The other person involved in the accident)
If you do meet up with an accident, having Third Party Liability will work in your favour with the following benefits:
- Covers the death or injuries to a third party
- Covers damages caused to a third-party property
- Easily acquired and renewed
- Could be purchased or renewed online
During an accident, the person with “Third Party Insurance Policy” is needed to immediately inform the insurance company about the incident.
If you were responsible for the accident or even if the other driver believes you were responsible, it’s almost certain that a claim will be made against you, which your insurance company will pay off. Hence, it is very important to make sure your insurance provider is aware of any accident you are involved in.
What does it not cover?
- Cover for losses sustained if your car or belongings are stolen or destroyed
- Coverage against damages to your own vehicle
- Cover for injuries you suffer in an accident
Moreover, the “Third-Party Insurance Policy” can be bought and renewed easily. Also, if you cannot personally go and renew it or buy it, you can always do it online on www.policies365.com
How much does it cost?
Third Party Insurance Policy is way cheaper than Comprehensive Car Insurance. Also, remember to make sure that the claim settlement ratios for your selected insurer are well above 85% to 90%