Third-party insurance, commonly referred to as liability-only insurance, is a mandatory coverage for all vehicle owners as per the Motor Vehicle Act. It provides protection against damages to third parties, their property, and personal injuries resulting from accidents. Please note that this insurance does not cover damages to the insured vehicle itself.
Eligibility Criteria
Anyone who owns a vehicle—be it a car, motorcycle, or commercial vehicle—is eligible for third-party insurance.
Premium Factors
The premium for third-party insurance is determined by several factors, including the vehicle’s make and model, the driver’s history, the vehicle’s registration location, and the type of coverage selected.
Benefits of Third-Party Insurance
Legal Compliance: Ensure you are legally covered by having third-party insurance.Financial Protection: Gain peace of mind, knowing you are financially protected against damages caused to others in an accident.
Basic Coverage: Provides essential protection against liability for accidents.
Third-Party Insurance Coverage Includes:
Injury to Third Parties: Covers physical injuries to individuals not involved in the accident.
Damage to Third-Party Vehicles: Pays for damage caused to other vehicles.
Property Damage: Covers property damage caused by the insured vehicle.
Death of a Third Party: Compensation for the death of a third party caused by the insured vehicle’s involvement in an accident.
Add-On Covers
While third-party insurance primarily covers liability, you can enhance your protection with additional covers, such as:
- Personal Accident Cover for Passengers: Covers passengers in case of an accident.
- Zero Depreciation Cover: Offers comprehensive protection by covering depreciation costs.
Exclusions
Third-party insurance does not cover the following:
- Accidents caused by Drunk Driving: Damages resulting from driving under the influence.
- Driving without a Valid License: Coverage is void if the driver doesn’t hold a legal license.
- Deliberate Acts Leading to Accidents: Accidents resulting from intentional actions are not covered.
- Commercial Use or Illegal Activities: Coverage is not valid if the vehicle is used for commercial purposes or illegal activities.
Conclusion
Third-party insurance is a vital safety net that ensures you are financially protected against unforeseen accidents, helping you meet your legal responsibilities and safeguard against liabilities. Get your coverage today and drive with confidence, knowing you are fully protected.