Why is third party insurance compulsory?

Is it OK to have 3rd party insurance?

As stated under the Motor Vehicle Act 1988, a person must get at least third-party online vehicle insurance. Having this insurance cover is a legal requirement, without which any car owner will have to pay a traffic fine or face the legal consequences.

Which policy is better comprehensive or third party?

A comprehensive car insurance policy offers the highest level of protection. With this all-inclusive policy, coverage is available for damage to third parties and your own vehicle due to accidents. It also covers your vehicle for losses due to total damage, theft, natural calamities, riots, miscreant damage etc.

Is 3rd 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.

Is third party insurance mandatory for 5 years?

Note that a 5 year cover is mandatory only for third-party (TP) bike insurance policies. Having third-party insurance is anyway compulsory for all vehicles as per the Motor Vehicles Act, 1988.

Do I need both comprehensive and third party insurance?

Every certified vehicle has to be covered by CTP insurance, whereas comprehensive car insurance is optional. CTP insurance only protects you from the personal injury liability that might arise if you injure anyone involved in an accident you caused.

Why car insurance is mandatory?

Risk Covers like car insurance is to protect us from unforeseen events and unplanned liabilities. Anyone can get stuck on the road with their car after an accident, car engine failure due to rains or theft of the vehicle. In any of the cases, having a car insurance policy will be a savior.

Is OD insurance mandatory?

✓ Is OD insurance mandatory by law? No, an OD insurance for your car or bike isn't mandatory but is recommended for protection for your own vehicle. As per the Motor Vehicle Act, the basic Third-Party Insurance is mandatory for all vehicles.

Is 3-year insurance compulsory for new car?

To compel this decision in August 2018 Supreme Court of India had directed to make the long-term third-party insurance compulsory with every purchase of the motor vehicle. This included a 5 year long-term package for two wheeler insurance, a 3-year plan for car insurance​ and a bundled cover with own damage for both.

Is insurance mandatory for new car?

In India, and all over the world, getting your car insured is a compulsory by law, not an option. The Motor Vehicle Act of 1988 makes it mandatory for all vehicle to be covered under an appropriate insurance policy before they can ply on the road.

Is insurance mandatory for new bike?

If anybody has bought a new bike, then he has to buy an insurance policy. Under the Motor Vehicles Act, the Government of India has made it mandatory for every bike owner to have an insurance policy.

Is it compulsory to buy insurance from car dealer IRDA?

It is not mandatory to buy a car insurance plan from a car dealer. Usually, car dealers try to push an insurance plan for which customers might have to pay a higher premium. So, it is always advised to research available car insurance plans before going to buy a car.

Is personal accident cover mandatory?

Ans: Yes, as per the India Motor Tariff 2002, it is mandatory to purchase a personal accident cover. The car owner car can purchase this policy with third-party liability cover as well.

Why is 3rd party insurance more expensive?

Insurers said premiums were higher on third-party policies because people taking them out were more likely to make a claim, and to claim higher amounts. Many of them do not have a choice but to take this type of cover.

What are the 3 types of car insurance?

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 is validity of third party insurance?

Since motor vehicle insurance is bought/issued/renewed on the validity of the vehicle owner's documents, motor insurance plans will remain valid until December 31st, 2020. Note: The extension granted is applicable only to the mandatory documents related to motor insurance and vehicle ownership.

What is bumper to bumper insurance?

Bumper-to-bumper insurance is termed as an insurance cover when the claims for vehicle parts are settled without applying depreciation as in the case of package policy or comprehensive policy, claims are settled after applying depreciation on replaced parts.

Why new car insurance is so expensive in India?

New cars have a higher Insured Declared Value (IDV). So, the part of the premium corresponding to IDV is higher than that of used cars. Since the IDV of used cars is lower, the premium corresponding to this component is lower. New cars will have the latest safety devices.

What is difference between OD and third party insurance?

Own Damage insurance provides coverage for your car in case of damages, theft or loss. This type of insurance plan is beneficial if you already have Third-party insurance for your vehicle. Since Third-party insurance covers only third-party injuries, death or property damages, you should buy OD cover for your car.

What is difference between od and TP insurance?

While the OD part provides coverage for any damage caused to the insured vehicle, the TP part covers the policyholder's legal liability arising due to damages inflicted to a third party individual or property due to his/her negligence driving.