According to the Motor Vehicle Act, third-party insurance, often known as ‘act-only’ insurance, is a legal necessity for all vehicle owners. It is a form of insurance policy that protects the insured against damage to a third-party vehicle, personal property, and bodily injury.
The third-party (TP) vehicle cover is one of the types of car insurance available in India. It provides financial security to the policyholder, in case of any damage or loss caused to a third party or his/her property. This insurance will cover any financial liability that may arise as a result of the accident. According to the Motor Vehicles Act, TP insurance is mandatory for vehicle owners to drive their vehicle on Indian roads. The third-party premium rate is set and notified by the Insurance Regulatory and Development Authority of India (IRDAI) at the start of each financial year, based on the capacity of the car or two-wheeler.
If a policyholder with third-party motor insurance is involved in an accident, the car insurance company will give financial coverage for any damage or loss caused to the third party or his property damage.
In the event of an accident, the insured person should notify the insurer as soon as possible before filing a claim. The insurance company appoints a surveyor to inspect the extent of the damages and verify the anticipated repair cost once the claim is filed. The insurance company pays the claim amount after the verification process is completed.
The policyholder must follow the claim rules in order to receive compensation from the insurance company. The stages for filing a claim for third-party insurance are as follows:
Checking your car insurance status is a basic and straightforward procedure. The IRDAI has launched the Insurance Information Bureau (IIB), a data repository for insurance. IIB is a web gateway that allows you to keep track of your vehicle's insurance policy details. The steps to check your car insurance status online are as follows:
• Step 1- Visit the IIB's website.
• Step 2- Enter the required details such as name, email ID or mobile number, address, car registration number, accident date and the security ‘Captcha’ code.
• Step 3- Click on submit.
• Step 4- The car's linked insurance policy information will be displayed; however, if it is not available, the previous policy information will be displayed.
• Step 5- If the foregoing procedure fails to yield any results, you can look up the car's engine and chassis number.
Here’s a list of common inclusions under third-party insurance plans.
Even though third-party car insurance has a restricted coverage, it is nevertheless necessary to include the following coverage:
• Third-party property damage:
As per the IRDAI regulations, the third-party coverage provided for all third-party property damage is up to Rs. 7.5 lakh.
• Third-party death/bodily injury:
Third-party insurance protects a third party against harm caused by the insured vehicle. Physical injuries, car damage, property damage, and death are all covered under this plan. The insurer pays out 100% in the event of a third-party’s death and 50% in the event of partial blindness or limb loss. A court of law determines the amount of compensation for third-party liabilities.
Here’s a list of common exclusions under third-party insurance plans.