Third-party insurance, also known as liability insurance, provides coverage against any legal liabilities arising due to injuries or damages caused to third parties due to an accident involving the insured car. The Insurance Regulatory and Development Authority of India (IRDAI) fixes the amount of third-party insurance coverage for cars in India. For private cars, the minimum amount of third-party insurance coverage mandated by the IRDAI is INR 15 lakh for death or bodily injury to a third party, and for damage to property, it is up to INR 7.5 lakh. Therefore, the third-party insurance coverage amount of INR 6 lakh for cars is not sufficient and does not meet the minimum requirements set by the IRDAI. It is advisable to opt for a higher third-party insurance coverage amount or opt for comprehensive insurance coverage that provides additional benefits such as coverage against damages to the insured vehicle, personal accident coverage, and more.
What Is Covered Under 3rd Party Car Insurance?
Third-party car insurance, also known as liability-only insurance, primarily covers damage or injury caused to third parties in the event of an accident. This insurance does not cover damage to your own vehicle. It includes coverage for bodily injury or death of third parties and damage to their property. In some cases, it may also provide personal accident coverage for the policyholder and passengers. It is mandatory by law in many countries to have third-party car insurance to ensure compensation for third-party losses in case of an accident involving your vehicle.
Does 3rd Party Insurance Cover Theft?
No, third-party insurance typically does not cover theft of your own vehicle. Third-party insurance covers you for damages caused to another person's property or vehicle. If you are at fault for an accident and cause damage to another person's vehicle, third-party insurance will cover the cost of those damages up to the policy limit. If you want coverage for theft of your own vehicle, you will need to purchase comprehensive insurance. Comprehensive insurance provides coverage for theft, as well as other types of damage to your vehicle, such as damage caused by weather, fire, or vandalism.
What Is 3rd Party Insurance Of Car In India?
In India, third-party car insurance is a mandatory insurance policy that every vehicle owner is required to purchase as per the Motor Vehicles Act, 1988. Third-party insurance provides coverage against any legal liabilities arising due to injuries or damages caused to third parties due to an accident involving the insured car. The policy covers the insured's liability to pay compensation for damages caused to third parties, including death or bodily injury, and damage to property. Third-party insurance does not provide coverage against any damages to the insured vehicle or its owner. It is advisable to opt for comprehensive insurance coverage that provides additional benefits such as coverage against damages to the insured vehicle, personal accident coverage, and more.
What is the Difference Between 1st Party And 3rd Party Insurance?
First-party insurance is a type of insurance policy that covers the policyholder's own losses or damages. This means that if the policyholder is involved in an accident or experiences damage to their own property, their insurance company will pay for the damages up to the limit of their coverage. On the other hand, third-party insurance provides coverage for losses or damages that the policyholder may cause to other people or their property. This means that if the policyholder is at fault in an accident, their insurance company will pay for damages or injuries suffered by the other party, up to the limits of the policy. In other words, first-party insurance covers the policyholder's own losses, while third-party insurance covers losses caused by the policyholder to others.
What is 3rd Party Insurance For Car?
Third-party car insurance, also known as liability insurance, is a type of car insurance that covers the policyholder's legal liability for any damage caused to third-party property or any injuries sustained by a third party in an accident involving the insured vehicle. It does not cover any damage to the insured vehicle or the policyholder's own injuries. Third-party insurance is mandatory in many countries, including India, and is designed to protect other road users and their property from financial losses that may arise from an accident.