What is the Importance of Third-Party Insurance?

As per the Motor Vehicles Act of 1988, a third-party insurance cover is mandatory for anyone who owns or drives a motor vehicle in India. A third-party insurance cover is a specific policy that protects you against legal or accidental liability, financial loss or damage to property. The cover also protects you in case of a third-party injury or even death of the person because of your vehicle. 

Since third-party insurance is mandatory in India, most companies usually include it in the main car insurance plan. However, if you purchase a standalone third-party insurance plan, you can club it with a comprehensive car insurance policy that offers own-damage cover, along with personal accident cover for the owner-driver.
Importance of third-party insurance in India

When driving, there is a real risk of an accident. In fact, in India, more than 5 lakh road accidents happen annually. This is one of the highest in the world. In these accidents, over 1.5 lakh people die, and more than 3 lakh people are severely injured or become disabled due to the accident. In such cases, third-party insurance in India becomes more of a need than a choice. 

Owing to the increased risk, the Motor Vehicles Act, 1988 mandated a third-party insurance plan for all types of vehicles in India. Therefore, by buying third-party insurance for your car, you comply with the legal obligation and can drive on the road without worrying.

Moreover, third-party insurance financially supports you in case of third-party loss, damage to property, injury or death. This gives you peace of mind knowing that in unforeseen circumstances, you have sufficient financial protection against third-party claims. 

Benefits of third-party insurance

Third-party insurance offers the following benefits:

⦁ Legal protection and financial assistance: Third-party insurance cover will financially protect you in case of death or disability of the third party and in case of damage to the third-party property or vehicle. This ensures that your legal and financial liability in case of a third-party claim is taken care of. 

⦁ Peace of mind: Third-party car insurance policy gives you peace of mind in case of a traumatic or unfortunate event that is financially draining. Hence, instead of worrying about these expenses, you will get immediate relief from stress and assistance in dealing with the incident.

⦁ Easily available: Because of their legal mandate, third-party insurance is easily accessible and easy to buy or renew online. You can avail of it at your time and convenience.

⦁ Cost-effective and beneficial: A third-party insurance plan comes at highly affordable premiums that easily fit your pocket. 

With a third-party insurance cover, you legally comply with the requirements of the Motor Vehicles Act. However, be careful when selecting your insurance provider. Choose a trusted car insurance company and get a car insurance online quote to invest in a policy that best meets your needs.

If you own a vehicle, you can buy a secure third-party insurance policy from TATA AIG car insurance at affordable premiums. The TATA AIG third-party insurance provides cover against third-party property damage, death or bodily injury to a third party. This policy is available for private cars, two-wheelers and commercial vehicles also. You can easily get a car insurance online quote, buy a new policy or opt for car policy renewal at your ease. Moreover, the claim process is easiest and fastest, offering you end-to-end support. 

As a responsible driver, it is advisable for you to invest in secure comprehensive insurance for a car that covers not only third-party liabilities but also own-damage to the insured vehicle and personal accident cover for the owner-driver, along with a choice of attractive add-ons.

FAQs

Why is third-party insurance important?

Third-party insurance is important because it is mandated by the law for all vehicles driving on the road to have a third-party insurance policy. Moreover, third-party insurance financially protects you against any third-party damage, loss of property, death or bodily injury caused to the third party. 

Is third-party insurance necessary?

Yes, as per the Motor Vehicles Act of 1988, third-party insurance is mandatory for all vehicles driving in India.

What is third-party insurance?

Third-party insurance is a basic insurance cover that protects you against financial liability in case of third-party loss, damage of property, or any third-party death or bodily injury.

What are the features of third-party insurance?

A third-party insurance policy protects against:

⦁ Any damage or loss of property/vehicle of the third party
⦁ Any bodily injury caused to the third-party
⦁ An accident resulting in the death of the third-party