An insurance policy is a contract in which financial protection is given to an individual or entity against any form of losses incurred. Driving involves a real risk to all of getting involved in an accident. It can lead to injuries, serious trauma and even death in some cases. There is also an increased probability of damage to a third party property too. It is these liabilities that are covered in third party insurance. Let us further understand more about this insurance provision and how it is worthy of all the importance that it is given.
What Exactly is Third Party Insurance?
When talked about in layman terms, third party insurance is what helmets are for bikers and passports are for travelers. There is no going beyond it as it is the law and it is illegal in case you do not have it. According to Indian Motor Vehicles Act, it is mandatory for every car to have a third party insurance in order to drive on road. It is the provision that covers all expenses if there is any damage caused to a third party while driving. This includes a person, property or another vehicle on the road.
Benefits of Third party Car Insurance
As illustrated by the definition above, third party insurance is obligatory by law. However, it is also beneficial for all car owners to get it done. Following are few of the benefits of this insurance:
1. Financial assistance and Legal cover: Third party insurance policy helps in covering the legal liability of the insured person in case there is any disability or death of third party or in case of damage or loss of property of the third party. Though there is no direct benefit to the company or the insured person, it is for the security of the driver or owner of the vehicle involved in the accident.
2. Peace of Mind: With third party insurance, a person has complete peace of mind in case of any traumatic situation with financial repercussions. In such unforeseen circumstances, you do not need to worry about the expenses and focus more on getting relief from the stress of the incident and coping from it.
3. Easy Processing: Third party insurance is easily accessible and can be bought or renewed through any car insurance company. It is a fairly quick and efficient process that can be availed even online as per your convenience and time.
4. Beneficial in case of unforeseen circumstances: The inclusion of this provision in the auto insurance policy is beneficial and cost effective in the long run in terms of both premiums as well as financial costs involved in an accident.
5. Round the clock availability: Unlike most of the other policies that can be renewed only through the traditional offline procedure, third party insurance is available round the clock online and can be availed at any time through any location. It is this easy mobility and accessibility that makes it so popular.
Thus, there is no denying of the mental, financial and legal peace offered by the third party insurance of your cars. The claim cover value may vary from company to company and policy to policy. There is also the model and make of the car that comes into play when determining the insurance premium. If you want to know more about the importance of investing in third party insurance, contact our experts for more information regarding the same.