Driving a car is a privilege, but it also comes with a great deal of responsibility. One of the most important responsibilities of a driver is to have adequate insurance coverage. In India, third-party liability insurance is mandatory for all drivers.
Third party insurance covers the legal liability of the insured driver for bodily injury or property damage caused to third parties in an accident. This means that if you are involved in an accident and you are found to be at fault, your insurance company will pay for the medical expenses and property damage of the other driver. Claims are subject to terms and conditions set forth under motor insurance policy.
What is Third-Party Liability Insurance?
Before getting to the details of the policy, you need to know who is a third party. A party is any person involved in the transaction or process of the policy. By this logic, the first party is the person that buys the policy. The second party is the insurance provider. Finally, the third party is any person that is affected by an accident caused by your vehicle.
Third-party liability insurance is a type of motor insurance that covers the legal liability of the insured driver towards any third person affected in the case of an accident. This means that if the insured driver causes an accident that results in damage to the property or injury to the third party, the insurance company will compensate for the damages or injuries. Claims are subject to terms and conditions set forth under motor insurance policy. *
How Does Third-Party Liability Insurance Work?
When you purchase third-party liability insurance, you will be issued a policy document. This document will state the terms and conditions of your insurance coverage.
In the event of an accident, you will need to file a claim with your insurance company. The insurance company will then investigate the accident and determine whether or not you are covered. If you are covered, the insurance company will pay for any liabilities that occur due to an accident. Claims are subject to terms and conditions set forth under motor insurance policy.
Also Read: Driver & Passenger Cover in Car Insurance
Benefits of Third-party Insurance
Third-party liability insurance does not cover damage to the insured vehicle or any injuries to the insured driver or passengers. For this, you will need to purchase a comprehensive motor insurance policy. Here are some of the benefits of third-party liability insurance:
- It compensates the third party for any property damage that they have suffered because of the accident.
- It compensates the third party for any bodily injuries that have happened as a result of the accident.
- It covers any legal liabilities you might incur due to the accident.
If you are a motor vehicle owner, it is important to have third-party liability insurance. It is a great way to protect yourself financially in case of an accident. Moreover, it is also mandatory to have a
PA cover for yourself to protect against injuries to yourself. Claims are subject to terms and conditions set forth under motor insurance policy. *
Also Read: The Add-On Coverages in Car Insurance: Complete Guide
Exclusions of third-party liability insurance
There are a few exclusions to third-party liability insurance. These exclusions typically include:
- Damages to the insured vehicle. *
- Injuries to the insured driver or passengers.*
- Damages caused by intentional acts, such as drunk driving or reckless driving. *
- Damages caused by natural disasters, such as floods or earthquakes.*
Cost Of Third-Party Liability Insurance
The cost of third-party
motor insurance is set by the Insurance Regulatory and Development Authority of India (IRDAI). This amount is periodically revised by the regulator. #
Making A Third-Party Liability Insurance Claim
If you are involved in an accident and you believe that you are entitled to claim third-party liability insurance, you should follow these steps:
- Gather all the relevant information, such as the names and contact details of the other parties involved in the accident, as well as the police report number.
- Contact your insurance company and file a claim. You will need to provide them with all the relevant information that you have gathered.
- Your insurance company will investigate the claim and determine whether it should be approved. If it is, they will cover the damages or injuries caused by the accident to the third party along with any other legal liabilities.
Claims are subject to terms and conditions set forth under motor insurance policy.
If you have any questions about filing a third-party liability insurance claim, you should contact your insurance company. They will be able to help you understand the process and answer any questions that you may have.
Also Read: Roadside Assistance in Car Insurance: Meaning of 24×7 RSA
Conclusion
Third-party liability insurance is an important part of motor insurance. It can provide financial protection in case of an accident and help you avoid legal hassles. If you are a motor vehicle owner, it is important to have third-party liability insurance.
If you are involved in an accident, you should follow the steps outlined above to file a third-party insurance claim. By doing so, you can ensure that you are properly compensated for the damages or injuries caused by the accident. Claims are subject to terms and conditions set forth under motor insurance policy.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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