Having a third-party car insurance policy is a legal mandate to be followed by all car owners in India. The policy ensures financial protection if the insured vehicle is a causing agent of damages to third-party vehicles and properties. In fact, the policy providers bear medical expenses if a third person's physical injury occurred due to an accident involving the insured car. Individuals just need to pay a nominal yearly premium to their insurers for perpetuating all these benefits.
Now that you know what third-party car insurance is, let's discover its coverage, benefits and functionalities.
What is covered in third-party car insurance?
Individuals get the below-mentioned coverage against their car insurance policy:
- Physical injuries of third-party individuals
The insurance companies bear treatment expenses when an insured vehicle is involved in any accidents. In fact, if someone gets disabled or dies in a collision, the insurer pays a lump sum to compensate for the loss to that individual's family.
- Third-party vehicle damages
When a car runs into another vehicle, it causes severe damage to its exterior and interior parts. As a result, vehicle owners become responsible for reimbursing the expenses to recover those damages. However, if they have an active third-party car insurance plan, they can leave all these financial obligations to their insurers.
- Third-party property damages
Losing control, a car driver can collide with others' properties and inflict significant damage. In this situation, if individuals have a third-party insurance policy, they can inform their insurers to pay the compensation for the accidental damage.
However, before applying for this third-party car insurance online, individuals must know how the policy functions.
How does third-party car insurance work?
This insurance policy provides considerable financial protection by helping them restore the third party damages. However, to ensure the continuity of all its benefits, they must renew their third-party car insurance online by paying the premium on or before the due date.
Here is how this motor insurance policy functions:
- Acknowledgement of incidents
Policyholders need to inform their insurers after their vehicles meet with an accident causing damages and injuries to third-party persons or property. They need to give insurers an account of the happenings thoroughly, such as how, when and where the mishap happened at this initial stage.
- Inspection of accidents
After insurers get updates about the casualty, they send their personnel for the survey. They assess the incidents and measure the financial impact of all the damages.
- Disbursal of insurance benefit
Upon completing the survey, insurance providers determine the amount they will have to carry against the damages caused due to the accident. After this, they provide compensation to those third parties for their losses.
Now that you have learnt how a third-party car insurance policy works, you should consider its importance.
What is the importance of third party car insurance?
Individuals need to purchase this car insurance policy to avail the following benefits:
- Legal protection
According to the Motor Vehicles Act of India, individuals must have their vehicles covered under this four-wheeler third-party insurance policy. Else, they can encounter fines or other litigation challenges.
- Financial assistance
This insurance covers damages due to an accident caused by a policyholder's vehicle. They just need to inform their respective insurers about the mishap.
- Easy availability
Individuals can easily purchase and renew their third-party insurance online. In fact, the claiming procedure for repairing the damages is also convenient.
- Peace of mind
Policy owners can protect their financial stability even after the accident as they do not have to withstand the expenses of third party damages. Only the insurers become liable for meeting all the costs.
- Cost-effective and easy renewal
Individuals pay a smaller amount of money as premiums for this insurance. Furthermore, they can easily renew their third-party car insurance online, reducing their burden of travelling to the physical offices of insurers.
So, individuals must ensure that their vehicles are protected under this third-party car insurance policy. In case they have just bought their vehicle or their policy has expired, they can navigate to the motor insurance portal of Bajaj Finserv, where individuals can easily compare and purchase a suitable insurance plan. Furthermore, they can also get the cheapest third-party car insurance from this platform to reduce their premium expenses.
In conclusion, individuals need to ensure that they have an active third party car insurance policy against the car they own. This will help them meet the legal liabilities and cover the expenses for repairing the ravages to third-party properties and bodily injuries.
With each passing year, where other insurance premiums tend to rise, car and bike insurance have a beneficial NCB, bringing down premium amounts.
No Claim Bonus is simply a perk given to policyholders for not making a claim in previous years. NCB in motor insurance can fetch up to a 20-50% discount on the payable premium amount by maintaining a claim-free record. NCB is not related to the make or age of the vehicle but solely on the claim record of the policyholder.
While purchasing a comprehensive motor insurance policy, you are generally not eligible for NCB unless in the case of NCB transfer. The policyholder will be eligible for NCB on the first renewal of the motor insurance policy, starting from 20%. This is applicable only if no claims have been made in the preceding years. The discount increases with every claim-free year up to a maximum of 50% at the end of five claim-free years.