What Is the Importance of Third Party Cover in Car Insurance?
Updated On Oct 15, 2023
Guide on what is third-party insurance and what is its importance in car insurance.
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There are certain rules which every car owner needs to follow to drive his or her car in India. The regulations include compliance with traffic laws as well as carrying some documents such as a driving licence, registration certificate, and car insurance. When it comes to car insurance, every car owner should compulsorily own at least a third party car insurance policy, according to the Indian Motor Tariff. Driving the car without this plan is a legal offence. Let us understand more about this plan.
What Is a Third Party Car Insurance Cover?
The third party is the basic car insurance policy, which at least has to be carried by every car owner while driving. It is a type of car insurance cover that provides financial protection to the third party for any damage or loss sustained by them due to bodily injury, death or property damage with the involvement of the insured car. This policy is also known as liability only and it does not offer any coverage to the insured person.
What Is the Importance of a Third Party Cover?
Third party car insurance is designed to provide the basic level of protection to all car owners by covering the financial liabilities that they incur towards a third party due to an accident with the insured car. Below given are the points that mark the importance of this plan:
- Legal Compliance - As the third party cover is a compulsion to own by every car owner. Thus, holding it allows the car owners to comply with the legal obligations set by Indian Motor Tariff.
- Affordable Coverage - It is the simplest way to cover yourself while taking the car out on the road as this basic car insurance policy is available at an affordable premium rate.
- Financial Protection - The third party cover provides the policyholders with financial protection against any damage or loss that they cause to other people in a mishap or an accident. Such protection ultimately gives peace of mind to car owners while driving.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.