Here are the benefits of having a Third Party Car insurance
Third party car insurance is one of the section in the car insurance policy copy, the other being the own damage section under the car insurance policy copy. The third party section can be taken as a standalone insurance cover under the car insurance policy. The premium for third party is decided by the government and the regulating body for insurance IRDA. The third party premium rates are subject to change every year depending upon the claims settled previous year and the gross premium underwritten by all the insurance companies taken into consideration.
Car insurance cost of third party premium is decided by the IRDA and is constant for all the insurance companies. Third party premium changes with the cubic capacity and the age of the vehicle. Third party premium rates are decided by IRDA and are subject to change each year depending on the previous year premium collected, claims settled and many other factors. Car insurance rates would increase if your car is fitted with the Bi-fuel system and other electrical and non electrical accessories. Both the own damage and third party premiums would be increased in this case.
Compulsory TP
The Motor Vehicles Act, 2019 has made it mandatory for the owner of the car to have at least a third party insurance if not the comprehensive insurance cover. The fine for not having the compulsory third part car insurance is up to Rs.5000/- and/or imprisonment of up to 3 months. There are three slabs for the third party premium depending on the cubic capacity of the car. The highest premium to be paid for a car would typically not be more than Rs.10k which provides coverage for a year. Having a Third party insurance can save your hard earned money from being paid as fine and prevents you from imprisonment.
Death and Disability Claim
The death and disability accidental claims are covered under the third party car insurance policy. In general the third party claims are to be reported to the insurance companies and will be settled by the honorable courts. The amount of compensation to be paid by the insurance companies to the kin of the deceased is decided by the honorable courts after taking many factors into consideration. These factors include the earning capacity of the deceased and other factors such as the age of the deceased etc.
In the absence of the third party car insurance policy the compensation awarded by the honorable courts for third party death and disability claims should be settled from your own pocket. There can be instances where the courts action your property to settle the third party claims in the absence of valid third party insurance.
Property damage claims
The third party property damage due to your car is covered under the third party car insurance policy. The Third party property damage is covered up to Rs.7.5Lacs under the third party car insurance. The limit under this section can also be restricted to Rs.6000 for a decrease in the overall premium to be paid under your third party car insurance policy.
The property damage claims of the third parties due to accidents are settled under the third party car insurance policy up to a maximum limit of Rs.7.5Lacs and anything above the mentioned limit has to be borne by the insured customer. The third party property damage claims doesn’t fall under the jurisdiction of civil courts and are generally handled by the Motor Accident Claims Tribunal.
Personal accident cover for owner/driver
Personal accident cover for owner/driver is mandatory for a sum insured of Rs.15 Lacs to be taken under the compulsory third party car insurance policy. The personal accident cover for owner/driver covers the claims due to death or disability of the owner/driver at the time of accident whilst driving the insured vehicle.
The personal accident cover sum insured is Rs.15 Lacs and the customer has an option to purchase a single personal accident cover for all of his cars in the form of Standalone personal accident cover for owner/driver.
Need for Third party car insurance
The need for a valid third party car insurance has increased these days due to the increasing road accidents resulting in the loss of lives of the passengers. A third party death claim may result in the loss of more than one life and the claim amount may run up to several Lacs in some instances where the car owner/driver might not be able to pay without the help of insurance company. The 4 wheeler car insurance cost are on the rise each year due to the increase in Third party insurance costs. This increase is attributed to the increase in claim amount settlement in the third party cases by the insurance companies.
If you opt to save yourself from running into bankruptcy it is important to purchase a third party car insurance policy for your car while driving in public places. Also having valid third party car insurance saves you from paying unnecessary fines and prison imprisonment.
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