All You Need to Know About Third Party Liability Motor Insurance
As per the Motor Vehicles Act, 1988, Third party car insurance is a mandatory cover required for anybody owning, buying or driving a motor vehicle. It is legally mandatory in India. Third party insurance covers the legal liability or damage that is caused to any third-party property or person other than the insured due to the fault of the owner of the car. When one buy motor insurance online they tend to follow the law and keep a safe distance from the legal liability.
In motor third party liability insurance, there are three parties involved.
First party is the insured one, who is the owner of the car.
Second party is the insurer, who claims the liability of the damage.
Third party is the one who is involved in an accident with the insured person’s car. Third party person can be anyone. For example, a person in another vehicle or anyone walking down the streets.
Under the third party car insurance or bike insurance cover, the insurer agrees to indemnify the insured person in case he is sued or held responsible legally for any injuries or damage done to the third party. This policy can also be extended to cover various other risks like Personal Accident to occupants and the driver of the vehicle.
Third Party Liability motor insurance is mandatory under the Motor Vehicles Act, 1988. This policy is named as third party because the beneficiary of this policy is the third person. This policy covers any legal liability you may face that occurs out of damage or loss to a third party – including death, injury, and/or property damage in the event of an accident that involves your insured car. In case of bodily injuries or death of the third party, unlimited compensation is available. In case of damage to a third party property, insurers indemnify the subject to the limit specified in the policy.
Some insurance companies sell third party car insurance and bike insurance policies online. So, an individual can avail this facility by approaching individual insurers, online as well as offline.
The premiums in third party policy do not vary, as the legal liability is insured. And it is not possible to predict the liability in advance in case of an accident. Workman Compensation court decides the compensation, to be given to the victim of the accident. In third party insurance, the process is easier for the insurer to receive the money. Every car plying on Indian roads should carry a third party insurance policy.
You can buy the third party motor insurance online through the official website or mobile application of your chosen insurance company or from an online insurance broking website.
The third party motor insurance premium calculator works out the premium rates based on the engine capacity of the car, the premium for personal accident owner cover and the goods and service tax which is 18%.