Is third-party insurance enough, or should I buy comprehensive car insurance?

is third party insurance enough for car
is third party insurance enough for car

Legal Compliance – Buying a Third party insurance policy makes you compliant with the law of the land. By buying this plan and renewing it before its expiry, you stay away from being imprisoned for legal violations. A car insurance policy is bought for a car instead an individual. Hence, if you sell your car to someone else, the insurance policy must be transferred to the new owner along with it. However, you have to make sure you carry out the proper paperwork to transfer the ownership of the car so that in case of an accident later, you are not held liable. I am very much impressed with the customer care representative of ICICI Lombard, who helped me in the process of renewing my car insurance policy over the phone.

I really appreciate her patience, and wish her great success for the future. ICICI Lombard’s agent gave me complete information about the policy benefits, including roadside assistance and coverage against third-party legal liabilities. Moreover, she satisfactorily answered my queries, and made the policy buying experience seamless and easy for me. I was serviced by your team, they explained all the silent features of the car insurance policy and helped me to renew my car policy from ICICI Lombard.

is third party insurance enough for car

It protects you against any damages, loss of property, bodily injuries caused to the third party or their death. Third-party auto insurance indemnifies the insured for any damage or loss caused to a third party due to an accident by the insured’s vehicle. The Insurance Company cannot avoid the liability except on the grounds and not any other ground, which have been provided in Section 149. If knowledge or connivance has not been proved, the Insurance Company shall remain liable even if defence is available. There is no limit when it comes to the compensation offered by the insurance company under the third-party injury/death clause.

Consequences of being caught driving without third-party insurance

Weather and visibility condition at the time of the accident. Dhirendra Mahyavanshi is the co-founder of insurtech company Turtlemint. He has over 16 years of experience in the insurance, e-commerce and fintech sector.

is third party insurance enough for car

In this case Madras High Court observed that a scooter-owner is not bound to take out a third party risk policy to cover the claim of the pillion rider that is carried gratuitously. If he is injured , the insurance company would not be liable unless policy covering such risk is obtained by the scooter-owner. A private carrier registered as such with R.T.O. and also in insurance policy , cannot be used for carrying any passenger or goods for hire or reward. However if it is so used and the employees of a party hiring the private vehicle belonging to the insured are injured in an accident the insurance company will not be liable. The third action provided for was contained in S.10 of the Road Traffic Act. Under this provision, the insurer could defend his liability to satisfy decree on the ground that insurance policy was obtained due to misrepresentation or fraud.

Any damage caused by your car to a third party’s vehicle is covered. For damage to property of a third party the liability of the insurer is limited to Rs. 6000 as was under the 1939 Act. For death or personal injury to a third party, the liability of the insurer is the amount of liability incurred, i.e. for the whole amount of liability. Earlier not holding a valid driving license was a good defence to the Insurance Company to avoid liability. It was been held by the Supreme Court that the Insurance Company is not liable for claim if driver is not holding effective & valid driving licence. Ø The third party insurance is unpopular with insurance companies as compared to first party insurance, because they never know the maximum amounts they will have to pay under third party policies.

At ACKO, you just need to provide a few details of your car on our official website or mobile app, and make the payment to insure your vehicle within a few minutes. Enter basic details such as car model, PIN code, registration year, previous policy details, etc. and purchase the policy. In case you want to renew your Third-party policy, simply login to your account, and renew the existing policy by making the payment. Third party injuries – There might be an instance where your car accidentally injures a third party. For example, your car might accidentally go out of control for a moment and injure a pedestrian walking on the footpath.

Why is third party car insurance mandatory in India?

The importance of third-party insurance covers is now evident. If you don’t have one already, you should definitely purchase one to save yourself from financial and legal burdens. Being legally mandatory according to the Motor Vehicles Act, 1988, third-party insurance covers are easily available and can be purchased or renewed online as per your convenience. However, with the new guidelines issued by IRDAI, vehicle owners got the flexibility to buy these two insurance covers separately, either from the same insurer or from different insurers. In such a scenario, an OD policy is termed as ‘Standalone Own Damage policy’.

Third party insurance also protects you against man-made and natural calamities. This certificate demonstrates that IIFL as an organisation has defined and put in place best-practice information security processes. Filing an FIR at the nearest police station from the spot of the accident and obtaining a charge-sheet against the insured or offender.

  • He has held various senior management roles both in the insurance companies and insurance brokers during this span of time.
  • This is where a third party car insurance policycomes to the rescue.
  • She sold me the idea of renewing my insurance with ICICI Lombard by highlighting the policy benefits like personal accident cover of Rs. 2 lakh, and coverage against third-party legal liabilities.
  • Further, you cannot claim compensation more than once for the accident.
  • We will compensate the third-party for injuries and property damage.

Apart from coverage for third-party liabilities, it also covers damages to the insured vehicle. Damages or losses arising from accidents, natural and man-made disasters, theft, fire and explosion are covered under this plan. Third-party insurance is important because it is mandated by the law for all vehicles driving on the road to have a third-party insurance policy. Moreover, third-party insurance financially protects you against any third-party damage, loss of property, death or bodily injury caused to the third party.

Two Wheeler Insurance

It is the primary duty of the vehicle owner to prove that his vehicle was insured with a particular company. If he fails to comply with it he will have to pay the entire amount of compensation in the case. In case where there is a dispute in respect of the vehicle having been insured by an assurance company, the tribunal must give its finding in the matter, it is its duty to do so.

Not abiding by this rule can lead to heavy monetary penalties. While there is no capped limit for compensation towards injuries or death, the maximum amount set for damages to third party property is limited up to Rs. 7.5 lakhs. Here are a few crucial points that you need to consider while making a third-party car insurance claim. Third party property – Damage to a third person’s property is also covered under a third-party policy. For example, your car might go out of control and crash into someone’s shop along the road. This policy insures you against the expenses arising out of such instances up to Rs. 7.5 lakh.

It is the minimum basic requirement, and hence a vehicle owner needs adequate insurance cover against all kinds of risks. You should purchase a Third-party Car Insurance Policy for your vehicle, as it is mandatory as per the rules and regulations of The Motor Vehicles Act 1988. Driving your car without is third party insurance enough for car a Third-party Liability Policy is illegal. This policy saves you from legal liabilities and financial losses due to damage to third-party property and injury or death of a third party. A commercial vehicle includes cars used for employee transportation, trucks used for transporting goods, etc.

Third-party insurance will never give you the kind of protection a comprehensive plan can give. You have spent a huge amount of money on buying the car, now you must spend enough to keep it secure and protected at all times. ● If the car insurance policy was expired at the time of accident, its damages will not be covered under this plan.

Understand the maximum liability

In the case of property damage, however, the coverage amount is limited to a maximum of INR 7.5 lakh. If the claim is more than this, the excess would form your out-of-pocket expense. John Otero is an industry practitioner with more than 15 years of experience in the insurance industry. He has held various senior management roles both in the insurance companies and insurance brokers during this span of time. Working in the agency is how he fell in love with the industry.

Best 5 Instant Taxi Insurance Quotes Online in India

In fact, in India, more than 5 lakh road accidents happen annually. In these accidents, over 1.5 lakh people die, and more than 3 lakh people are severely injured or become disabled due to the accident. In such cases, third-party insurance in India becomes more of a need than a choice. Information provided on Forbes Advisor is for educational purposes only.

Any damages to the engine are not covered in your comprehensive insurance policy. If you reside in a heavy rainfall area where the chances of your vehicle getting submerged in water are higher, the engine protection cover is a boon. Besides the necessity of law, vehicle insurance is of utmost significance for you and your vehicle’s safety. A car insurance policy rescues you financially from any mishap, injury, or third-party liability; it even includes natural and man-made calamities. No, you cannot lose your No Claim Bonus discount by filing a third party car insurance claim because this discount on premiums is only offered on Own Damage or comprehensive car insurance policies.

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