What is third party insurance?
Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.
Is 3rd party insurance compulsory for 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.
What is the difference between comprehensive and third party insurance?
We all know one thing that the primary difference between third-party car insurance and a comprehensive car insurance one is that of coverage. The third-party insurance as clear with the name only covers for third party liabilities, while the comprehensive one covers for damages done to own vehicle as well.
What is the benefit of third party insurance?
What is third party insurance? It protects you against any legal liability, accidental liability, or property damage in case of an unfortunate event. This policy also covers medical expenses in case a third party is injured in an accident or dies.
Is third party insurance good?
Third party insurance is the least amount of cover that you should legally have on your car. Therefore it’s always worth comparing the cost of this type of insurance against comprehensive cover. Third party fire and theft insurance is an additional option that you may consider.
Is third party insurance enough in India?
It is mandatory as per The Motor Vehicles Act, 1988 and driving without a Third-party Liability policy is a punishable offense. However, it is not the most ideal coverage with regards to the above-mentioned purpose of insurance. Read ahead to know 3 reasons why a Third-party Liability car insurance is just not enough.
Is it mandatory to buy insurance for 5 years?
Following a Supreme Court ruling in September 2018, IRDAI has made it mandatory for all new two-wheelers to be issued a 5-year insurance cover. This has been done to ensure that maximum number of two-wheelers remain insured and also to minimise incidents of lapsed, expired policies and uninsured vehicles.
Is comprehensive cheaper than third party?
Not only could comprehensive insurance be cheaper than paying for third party cover, but if you get into an accident, your insurance company will pay for the damages to your vehicle. You may receive compensation when the fault can’t be proven too.
What happens if you only have third party insurance?
WHAT IF I ONLY HAVE THIRD PARTY PROPERTY INSURANCE? You may claim on this type of policy if there is any damage to any other car or property. If you believe that someone else caused, or partially caused the accident you may be able to recover your costs from them or their insurance company.
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.
Can I drive 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.