Owning the wheels of your choice is like a dream come true. You must have invested your hard-earned savings in order to buy this prized possession. But social norms demand that the ownership of your vehicle needs to be balanced out against the right to life and property of others.
Third-party car insurance is a contract that protects you against any legal and financial liabilities towards a third party in case of an accident, resulting in injuries, damage to properties, or even death.
The importance of this policy can be understood from the fact that it is mandatory under the Motor Vehicle Act, 1988.
As the owner of a vehicle, you must have an understanding of the following benefits of a third-party car insurance policy:
A third party car insurance nullifies your legal liability in case of death or disability or destruction of property belonging to a third party in an incident involving your vehicle.
The third party is compensated with the sum assured. Insurance Regulatory and Development Authority of India (IRDAI) has prescribed the compensation limit of up to Rs. 7.5 lakh.
Peace of mind
Being involved in a car accident, one that causes loss of life or property damage to a third person can put you into a state of mental trauma. In such a situation, a third-party motor insurance policy can be of much help.
Knowing that the insurance plan has provisions to compensate the affected, albeit only financially, may offer you some solace and mental peace.
You can avail third-party car insurance as a part of the comprehensive plan package or as a stand-alone policy. As it is mandatory by law, to ensure compliance, it is the cheapest form of motor insurance available in the market. The premium for third party insurance is determined on an annual basis by the IRDAI.
You can easily avail third-party four-wheeler insurance online. Reputed car insurance providers and insurance aggregators in India also provide insurance premium calculators with which you can get a quote in minutes by entering necessary details like your car’s:
- Year of registration
- City of registration
In case you need to shift locations, your policy travels with you. However, you are required to update the contact details in your insurer’s database online.
There might be a change in your car insurance premium. Premium rates are determined on the registration zone of your vehicle. All the metro cities of India like New Delhi, Mumbai, Kolkata and Chennai are part of Zone A. They attract higher premium rates than the rest of the country.
Mind the exclusions
From the above discussion, the value of a third-party car insurance policy is evident. However, you should also understand the situations where the policy will be unable to come to your rescue.
Such cases may include:
- Damages caused due to driving under the state of intoxication
- Accidents caused as part of a deliberate plan
- Driving behaviour, not in compliance with the law like driving without a license
- Usage of vehicle for commercial purpose
- Theft or damage to the car or injury/death of its owner/driver.
- Expired insurance contract
As per the recent diktat by IRDAI, you are required to buy long-term third-party four-wheeler insurance of up to 3 years. So, now you can avoid the hassles of renewing your policy every year.
Bajaj Finserv Pocket Insurance presents various innovative insurance solutions for your vehicle. For instance, key replacement insurance helps you recover the costs of replacing a lost key for your car.
The product is rich with features like covering for the lock replacement service and reimbursement for renting a car.