What Are the Advantages of Having A Third-Party Car Insurance Cover?

We can all agree that cars are a precious commodity. Not only do they help us to commute in everyday life, but they also are a status symbol in society. However, while driving your car, accidents can happen anytime. Mishaps commonly occur on the road even when you are driving safely, taking all the necessary precautions, and observing the traffic rules.

That is why it is mandatory to have a third party car insurance cover as per the Motor Vehicles Act in India. Not only does it safeguard you when you are a part of an accident involving a third party, it also bears the expenses of any damage to the other party’s car.

Let us look at some of the benefits of third-party car insurance in depth –

  1. Fulfils legal obligation: As it is mandatory by the Motor Vehicles Act of 1988 to have third-party insurance for your car, and it is a penalty if one does not adhere to it, it certainly fulfils a statutory legal obligation.
  2. Offers financial protection: In case of an accident, third-party liability insurance will protect you from any financial loss towards the third-party. This is advantageous as if any financial loss takes place, the insurance company will pay the compensation to the affected other party. The insurance company also provides compensation in case of a bodily injury or death suffered by the third-party.  Moreover, damages to the vehicle or property of the third-party will also be covered up to Rs. 7.5 lakhs.
  3. Personal accident cover: If you as an insured have personally suffered injuries from an accident involving a third-party, and if that injury has resulted in permanent total disability which prevents you from earning a living, you will receive a claim compensation in third-party liability cover. You will be entitled to a claim compensation under the personal accident cover under the third-party liability insurance. In case it results in an unfortunate demise, your nominee will receive compensation from the insurance company as well.
  4. Most affordable car insurance: Many car owners even prefer this insurance over comprehensive cover, and not just because it’s mandatory. This is because it is the most affordable cover, especially if you’re considering to buy third party car insurance online and the cost is quite a bit lower as compared to a comprehensive cover.

However, please note these limitations of third-party car insurance – it does not include own damage cover. So, if your vehicle is also damaged in the accident, financial protection for the same will not be offered. Moreover, there are no additional add-on covers such as no claim bonus, engine protection, roadside assistance, and the like that you can purchase to enhance your plan, unlike in comprehensive car insurance.

Having said that, it is still a beneficial car insurance cover that you must have. You can purchase car insurance online easily and without much hassle now. Make sure you purchase vehicle insurance online and renew it timely without fail.

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