As you may already know, third party car insurance online provides financial protection against damages caused to others, including property damage and injuries.
However, when it comes to buying the right policy, navigating the world of car insurance can be confusing, especially when understanding the third-party car insurance limit.
However, knowing the coverage limit and how it works is necessary before investing in this bike insurance policy. In this blog, we will discuss the details of third-party car insurance, its limits, and its essential rules that will help you make an informed decision.
Let’s dive in!
What is Third-Party Car Insurance?
Third-party car insurance for four-wheelers is a mandatory type of coverage that protects you from liabilities from damages caused to another person, their vehicle, or property in an accident involving your car. While it does not cover the policyholder’s damages, it allows compliance with legal requirements and prevents out-of-pocket expenses for third-party claims.
Why is Third-Party Car Insurance Mandatory?
The primary purpose of third-party car insurance is to provide financial protection to third parties impacted by an accident caused by the insured. This makes sure that victims of accidents are compensated fairly for their losses.
Failing to purchase car insurance online attracts legal penalties and exposes you to substantial financial liabilities in case of an accident.
Understanding Third-Party Car Insurance Limit
A third-party car insurance limit is the maximum amount the insurer will pay for third-party damages or injuries. This limit is typically determined by regulatory authorities and varies by region or country.
1. Limit for Property Damage
In most cases, the limit for third-party property damage is capped. For example, in India, the maximum compensation for property damage under third-party car insurance is ₹7.5 Lakh. The policyholder must bear any amount exceeding this limit.
2. Limit for Bodily Injuries or Death
Unlike property damage, there is no fixed cap on compensation for third-party bodily injuries or death. The compensation is determined based on the severity of the injury or the financial dependency of the victim’s family, as decided by the Motor Accident Claims Tribunal.
What is Covered Under a Third-Party Car Insurance Policy?
A third party includes:
- Bodily Injury or Death: Covers medical expenses or compensation for injury or death caused to a third party in an accident.
- Property Damage: Covers damages to third-party property up to the specified limit.
- Legal Liabilities: Offers protection against legal liabilities arising from third-party claims.
What is Not Covered Under Third-Party Car Insurance?
While third-party car insurance is necessary, it has certain limitations:
- There is no coverage for damages to your vehicle.
- There is no protection against theft or natural calamities.
- There is no coverage for personal injuries sustained by the policyholder.
Consider a car insurance policy that includes own-damage coverage for more comprehensive protection.
How to Claim Third-Party Car Insurance?
Filing a claim under third-party car insurance involves the following steps:
● Inform Your Insurer
Notify your insurance provider about the accident immediately.
● Collect Evidence
Gather evidence like photos, videos, and witness statements to support your claim.
● File an FIR
Register a First Information Report (FIR) with the local police.
● Submit Documents
Provide the required documents to your insurer, such as the FIR, policy details, and proof of damages.
How to Buy Third-Party Car Insurance Online?
Purchasing third-party car insurance online is quick and hassle-free. Follow these steps:
- Compare various policies to find the best option for your needs.
- Use the insurer’s online portal to select and purchase the policy.
- Review the terms and conditions, especially the third-party car insurance limit.
- Make the payment, and download the policy document for future reference.
Conclusion
Understanding the third-party car insurance limit is necessary to get financial protection and legal compliance. While it safeguards against third-party claims, knowing its coverage and limits will help you make informed decisions.
Are you filing a claim or purchasing insurance for 4-wheelers? Make sure that you are well informed about the policy’s terms and conditions. Doing so can mitigate risks and protect yourself from unforeseen liabilities.
Frequently Asked Questions
What is a Third-Party Insurance Amount?
The amount depends on the damages caused. In India, property damage is capped at ₹7.5 lakh, while the Motor Accident Claims Tribunal decides compensation for injuries or death.
What is the Time Limit for Third-Party Car Insurance Claims?
Claims must generally be filed within 30 days of the accident, though this can vary by insurer.
What is the Third-Party Car Insurance Rule?
The rule mandates that all vehicles on public roads must have valid third-party insurance to cover liabilities toward third parties.
What is Covered in Third-Party Car Insurance?
It covers property damage, injuries, or fatalities caused by an accident involving your vehicle.
