Buying a car insurance these days is easier. Thanks to online brokers like Coverfox. But then again, how many actually understand its know-hows especially related to Third Party cover which is a legal mandate?
A third party car insurance is a shield against any unforeseen threats that might be inflicted by the vehicle owner to a third person involved in an accident other than the vehicle owner or the insurer. Though it is a mandatory insurance cover to have before running your vehicle on the roads, the Motor Vehicles Act, 1988, also terms all vehicles running without it as illegal and faulty.
The insurance helps safeguard the third party in an accident, (the person other than the vehicle owner and the insurer) who might be a part of the accident without his own fault. It settles for him the costs of his injuries and medical expenses, any disability or even death. The third party car insurance, which is also known as an “act only” cover, where it is a safeguard of compensation for the person who gets affected in an accident, it also acts in the interest of the vehicle owner by giving him lesser worries at the time of an accident.
Below is an account of third party insurance cover, and the compensations offered in it.
Limits of compensation under varying injuries and claims:
Compensation for injuries inflicted by the accident:
In cases of minor surface or internal injuries inflicted by an accident, the third party compensation makes the person liable to claim for his medical expenses and treatment.
Compensation for partial disability caused by the accident:
It can be a severe case if an accident results to a partial disability or non-functioning of a body part. But with the cover of an active third party insurance, the vehicle owner can save himself from the troubles of the mishap. The compensations include the medical expenses and hospitalization charges that the third person files against the vehicle owner.
Compensation for permanent disability caused by the accident:
In case the accident results to a permanent disability, that is the non-functioning of a body part permanently, say, the loss of limbs, or vision, etc. The act only insurance cover is there to back up the vehicle owner for the losses incurred by the third party. The compensations again include the costs of medical bills and hospitalization charges.
Compensation for death caused by the accident:
If the third party involved in the accident loses his life, there is a serious threat of charges to be faced by the vehicle owner. However, if the vehicle that caused the accident is insured, the threat minimizes to a large extent. The insurance company is liable to pay the compensation of the deceased, if some legal heir files a case against the vehicle owner under the third party act.
Compensation for damage to property by accident:
If the accident results to the damage of any property, apart from physical injuries to anyone, then a compensation for the losses occurred to the property are settled by the third party insurance cover.
The compensations under various acts vary accordingly. The cost of settlement for injuries and, partial disabilities include the medical and hospitalization expenses. While in case of a permanent disability or death the compensation offered is likely to be of a higher value that is decided basis the losses incurred due to the person’s disability or death caused by the accident.
In case of any damage to the property by the accident, the maximum cost of compensation is 7.5 lakhs. Any amount above that, either decided by the court or mutually agreed between the first party and third party, is cleared by the vehicle owner himself. However to claim the compensation from the court of law, the third person needs to file an FIR against the vehicle owner and produce the vehicle owner’s valid insurance papers before the MACT (Motor Accident Claims Tribunal) and follow the final judgment.
Not a single person wants to land in a situation of claiming on his motor insurance however, as uncertainties knock at the door without any warning, it’s always advised to be aware of nitty-gritties of your motor insurance policy. As Third Party cover is a legal mandate, isn’t it in our best interest to know its cover just to be prepared?