Picture this: You’re on the road driving for your next big road trip adventure. While you're on your way out, your car encounters an accident with a third party. Amidst all the hassle, you don’t know whom to call and get you out of this situation. What will you do then? In order to keep you protected in this scenario, the Insurance Regulatory and Development Authority (IRDA) has made third party car insurance mandatory.
If you’re clueless about how third party insurance works, then keep reading to find out more about the same.
What is Third Party Car Insurance?
According to the Motor Insurance Act, 1988, a third party car insurance
is a statutory requirement. The purpose of a third party car insurance is to provide coverage for any fiscal liability typically incurred by the owner of the car. Whether it is the case of demise or any physical disability to the third party, everything is taken care of by a third party car insurance policy. The idea behind the existence of third-party insurance was from the fact that the beneficiary is neither the policyholder nor the insurance company, but the third party.
When you opt for a third party policy, every customer must thoroughly understand the inclusions and exclusions of the policy. Assessing the coverage of the policy will ensure that your claim does not go rejected in time of a sudden occurrence of an unfortunate event. Before purchasing third-party insurance, read the terms and conditions thoroughly.
Another important thing to take into consideration before purchasing car insurance
is the premium rate.
What are the premium charges for third party car insurance?
||Premium Rate for Renewal
||Premium Rate for New Vehicle
|Less than 1,000 CC
|More than 1,000 CC but less than 1,500 CC
|More than 1,500 CC
In order to get multiple quotes from insurance companies, a policyholder can find out the same either offline or online. For offline research, he has to directly speak to the agent and get his queries resolved. The best way to look for several quotes at the same time is by making use of a car insurance calculator
. With the help of an online calculator, you can compare premiums, features, and benefits provided by different insurance companies under the same plan.
Now that you know everything about the premium payment of a third party car insurance, invest in car insurance today before it’s too late. In case you’re caught red-handed on the roads without a third party car insurance policy, then you’ll be liable to pay hefty penalties.