What Is Third Party Insurance And Whats Covered Under It?

Third-party car insurance, also known as liability-only’ insurance, is a legal requirement for all vehicle owners under the Motor Vehicle Act. It is a type of insurance policy in which the insurer protects against third-party vehicle damage, personal property damage, and bodily injury. The policy offers no protection to the insured.

Third-party insurance?

Let’s understand what third party insurance is.

If a policyholder is involved in an accident, the insurer will provide financial assistance to cover the cost of repairs to third-party property. Which is why, the policyholder’s financial stress is reduced. If one is in an accident, the insured member must almost immediately notify the insurance provider before filing a claim.

When you file a claim, the insurer will then appoint a surveyor to assess the damage and provide the estimated repair cost. The insurer settles the claim once the verification is complete.

Advice: For comprehensive policies, use an online third party car insurance premium calculator to evaluate your premium prices based on your requirements.

Third-party insurance importance:

Third-party insurance is a legal requirement. As a result, having third-party coverage allows the policyholder to meet their legal obligations.

Although it is an essential coverage option, it provides policyholders with peace of mind by ensuring adequate financial protection in the event of an accident. Third-party motor insurance protects the policyholder’s finances from unintentional risks.

1. First party:

The policyholder or the individual who purchased the insurance policy. The insurer or insurance company is a third party.

2. Third-party:

The person or entity who files a claim for damages caused by the first party.

It is also critical to understand what is third party insurance and keep all the information about the accident be gathered and provided to the insurer, including the following details:

  • Accident description, including date and time.
  • Insurance and policyholder information was present at the time of the accident.
  • Describe any injuries sustained by the driver or passengers and any damage to property or vehicles.
  • Witness information.
  • The weather and visibility conditions were poor at the time of the accident.
  • Photographs of evidence gathered at the accident scene.

If the police inquire, provide the insurance company’s information and make a note of the First Information Report (FIR) number, if applicable.

Third-party insurance benefits:

  • Third-party insurance provides all policyholders with a basic level of protection.
  • It is also known as a liability-only or act-only policy.
  • It protects the policyholder from legal liability to a third party that may arise in future. It compensates the third party for personal injury, demise, and property damage.
  • One distinguishing feature of this type of policy is its low premium.
  • Third-party insurance does not protect the insured vehicle.

The steps to filing a third-party insurance claim

The policyholder must follow the claim rules to receive compensation from the car insurance company. The steps to claiming third-party insurance are as follows:

  • First and foremost, the policyholder must notify the insurance company of the accident within the time frame specified in the policy document.
  • The policyholder must report the accident to the nearest police station and obtain a report copy.
  • Fill out the form and provide the necessary documents to the lender to file a claim.
  • Following the claim filing, the insurer will dispatch a surveyor to assess the damage and confirm the estimated cost. Post this assessment, the surveyor then submits the report.
  • The insurer can then settle the claim based on the surveyor’s report.

Make sure to pay the price of third party car insurance on time to enjoy its benefits.

“As Insurance is a matter of solicitation its recommended to obtain complete information about the exclusions, benefits, terms & conditions and limitations of the insurance. Kindly carefully go through the sales policy/brochure before opting for any Insurance.”

*As per the IRDAI Insurance plan, all savings are provided only by the insurer. Standard Terms & Conditions apply.

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