Third Party Motor Insurance is unavoidable if you must drive on Indian roads. Let’s discover what it actually covers.
A third party car insurance covers the insurer against any damage or legal liability caused to a person or property other than the one insured. It acts as a cover on behalf of the insured person. The Motor Vehicle Act, 1988, makes third party liability cover as mandatory for all vehicles running on the streets.
Under the third party insurance cover the insurer agrees to indemnify the insured person, in case he is sued or held responsible legally for any injuries or damage done to the third party. The person insured is referred to as first party, the insurer or insurance company is called the second party and the person the insured injured or who claims damage is third party.
Any vehicle owner, whose vehicle is registered with the Regional Transport Authority, can avail the third party insurance cover. As it acts solely on the third person, it is also referred to as an ‘Act-Only’ insurance cover.
There are a number of things that are covered under third party car insurance, they are listed as following:
Claims for injuries
It is unknown as of how much injuries might be inflicted by an accident. A third party cover acts as a shield to the insured person, as it helps bear the cost of the third party’s injuries. From tiny injuries to severe fractures, a third party cover covers all. The medical bills of the third party are covered under the insurance plan and the vehicle owner is saved from the trouble and expenses.
For any injuries sustained during an accident, or a seemingly partial disability, the third party insurance covers the compensation and medical expenses for the same. At a crucial time where the vehicle owner might not be himself in the state to assist the injured person, the insurance comes to use effectively.
Permanent total disability
Other than fractures, or partial disability if the third party receives a partial or permanent total disability, like paralysis of the limbs or loss of bodily parts in the state of the accident, the insurance company holds the compensation of the loss for the person. Though the loss of the functioning of the body cannot be restored, compensation definitely acts of some help.
In case of a severe accident, where a third person might even lose his life, the third party insurance also provides death compensation. The coverage is unlimited and widely depends on the factors like the earning capacity of the affected and the impact on the family, etc.
In the course of an accident if some property is damaged, the vehicle owner has less to fear if he is insured against the third party. The insurer shall pay for the third party’s losses and walk the insurer out of it safe and sound. Third party property damages are covered up to a sum of Rs.750,000. Insured has option to restrict coverage for Third Party Property damage to Rs.6,000 whereby there will be reduction in "Liability Only" premium.
Even though it is a mandate to armor yourself with at least the Third Party insurance plan, it arranges for superior respite to the vehicle owner in case of any out of the blue disaster.