What is third-party insurance in India?
Asked by: Prof. Lilly Zboncak | Last update: July 30, 2022Score: 4.5/5 (57 votes)
What is third-party insurance? As per the Motor Vehicles Act of 1988, a third-party insurance cover is mandatory for anyone who owns or drives a motor vehicle in India. A third-party insurance cover is a specific policy that protects you against legal or accidental liability, financial loss or damage to property.
What is mean by third party insurance?
Third-party insurance is the basic insurance cover that takes care only of third-party damages. The recipient of the claim is not the policyholder but another person or vehicle affected by the first party's insured car.
What is difference between comprehensive and third party insurance?
Comprehensive car insurance protects your car and passengers and the third-party's car and passengers from financial losses incurred due to an accident. Standalone third party car insurance only covers the financial and legal liabilities arising from a third-party claim.
How does 3rd party insurance work in India?
Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.
Is third party insurance compulsory in India?
Yes, third party motor insurance is mandatory for two-wheelers and four-wheelers in the country. This mandate has been set by The Motor Vehicles Act, 1988.
What is Third Party Insurance| First Party Insurance | Insurance | Car Engineer | Sumit Choudhary
Can I drive any car with third party insurance?
The car you want to drive must be covered by an existing insurance policy and you must have permission to drive it. Driving other cars cover is usually only available on a comprehensive car insurance policy, so if you have third party (or third party, fire & theft) cover, you won't be covered to drive any other cars.
What are the disadvantages of third party insurance?
A third-party car insurance plan doesn't provide coverage for the cost of damage caused to any automobile or any belongings in the automobile if there is any accident. Along with that, it won't provide coverage to your car or if you belongings are damaged or stolen.
What is the benefit of 3rd party insurance?
A third-party insurance cover is a specific policy that protects you against legal or accidental liability, financial loss or damage to property. The cover also protects you in case of a third-party injury or even death of the person because of your vehicle. When driving, there is a real risk of an accident.
Is it compulsory to take third party insurance?
Owning and driving a car in India comes with various responsibilities. Apart from following traffic rules, you must have third-party car insurance. You can get comprehensive insurance if you wish to protect your own car as well, but a third-party liability policy is legally mandatory and non-negotiable.
Can I claim third party insurance?
One can register a claim for injury, death or property damage, with the tribunal with jurisdiction over the area where the insured or defendant resides. However, there is no limit for claiming on liability for injury or death, on can avail the cover for third-party property damage up to Rs. 7.5 lakh.
Is third party insurance mandatory after 3 years?
Third party insurance is mandatory under the motor insurance law for covering liability of third party. Insurers believe the 3 year tenure will subsequently decreases the cost like issuing policies, administering them and follow-ups for renewals.
Which type of insurance is best for car?
Which is a better Car Insurance? Taking a comprehensive car insurance cover is always advisable as it provides complete protection of not only someone else's car like a Third-Party car insurance, but also the Own damages to your car, as well as any injury to the owner driver.
What do you mean by zero DEP insurance?
With zero depreciation coverage, the insured does not have to pay the depreciation value of the damaged or replaced parts and the policyholder can claim. It applies to vehicles that are less than 5 years old and the policyholder can avail of it twice during the policy tenure. Read more.
What is difference between 1st party and 3rd party insurance?
A first party can be covered under personal accident cover and get own damage cover for his/her car with a comprehensive insurance policy. A third party can be covered under a third party motor insurance policy. A first party receives insurance benefits only under comprehensive insurance as part of own damage cover.
What is 1st 2nd and 3rd party insurance?
First-party refers to the insured individual, second-party is the insurance provider, and third party is the person towards whom damages are owed by the first-party in an accident.
How third party insurance works in an accident?
Third party insurance covers your accidental legal liabilities arising due to damaging a third party property or vehicle. It also covers your legal liabilities if an accident caused by you results in a third party person's disability or death.
Is third party insurance good enough?
The main differences between levels of car insurance
For many people, comprehensive insurance is a better deal as it covers you for most outcomes and eventualities. Third-party insurance is really to protect other people – it's not designed to help someone recover the cost of an accident to their own vehicle.
Who is the beneficiary of third party insurance?
The policy's beneficiary is someone who is not one of the contract's two parties, namely the insured and the insurance provider. A 'third-party' cover is what it's called.
What happens when you only have third party insurance?
With a third-party only policy, you are literally only covered for damage done to other people's property or vehicles. This means that damage done to your car isn't covered - even if you're not at fault. Therefore, if your car is stolen or catches fire, you will not be covered.
Does comprehensive cover third party?
Comprehensive car insurance - also known as fully comprehensive - covers damage to yourself, your car as well as compensating a third party if you are involved in an accident.
Can my wife drive car?
There's no limit to how many people can drive the car, so any friends or family, who have your permission, are legally insured to drive it. This type of car insurance is far less common, as most people only have one, or a few, named drivers added to their existing policy.
Can I drive my friends car on my insurance?
'Driving other cars' is a clause in your policy that allows you to drive someone else's car without being a named driver on their policy. It's important to understand that if such a clause isn't included, you aren't covered to drive other cars – even if your insurance policy is fully comprehensive.
Can I drive any car if I'm over 25?
At MORE THAN we believe it's better to be added as a named driver if you want to drive someone else's car. We don't insure anyone under the age of 25 to drive another person's car. This is also subject to your occupation, plus, drivers over the age of 25 should not believe they are entitled to drive someone else's car.
Is bumper to bumper same as zero depreciation?
Zero depreciation cover and bumper to bumper cover are the same thing. They are just two names for a car insurance add-on which insures a policyholder against the depreciation cost of his/her insured's car. Zero Depreciation or Bumper to Bumper plan covers the full cost of replacement.
Is zero dep not available after 5 years?
Depreciation for calculating IDV
However, for vehicles older than five years, or the models that are discontinued by the manufacturer, such an IDV is decided mutually by the insurance company and you, the policyholder. Thus, the cover for zero dep car insurance after 5 years is not available generally.