A third party car insurance cover is a basic four wheeler insurance cover that is mandated by the Motor Vehicles Act,1988 for every car plying on the Indian roads. It covers the third party, their vehicle or property that has been damaged by your car. Few of the best third party car insurance plans available are:
| Insurer | Coverage |
| Bajaj Allianz Car Insurance | Up to INR 7.5 Lakhs cover for damage to third party damage |
| Bharti Axa Car Plan | Up to INR 7.5 Lakhs cover for damage to third party damage |
| HDFC ERGO Car Insurance Plan | Up to INR 7.5 Lakhs cover for damage to third party damage |
| Future Generali Car Insurance Plan | Up to INR 7.5 Lakhs cover for damage to third party damage |
| IFFCO Tokio Car Insurance Plans | Up to INR 7.5 Lakhs cover for damage to third party damage |
| Liberty Videocon car Insurance | Up to INR 7.5 Lakhs cover for damage to third party damage |
| New India Assurance Car Insurance | Up to INR 7.5 Lakhs cover for damage to third party damage |
Why is third-party Insurance Important?
Besides being mandated by law to have the minimum third party insurance cover for your car, the eventualities that happen on the road cannot be predicted beforehand. In case of an accident with another vehicle, damage to the property of a third party or injury or death of the third party can lead to serious complications and when your vehicle is at fault, the expenses are borne solely out of your own pocket. In case of such an incident, the third party has all the right to claim a compensation and under such circumstances, the third party car insurance comes to help. The third party car insurance plan covers the damage done to the thirds party, their vehicle or the property. As per IRDA rules, the cover for third party damage is capped at INR 7.5 Lakhs or depending on the capacity of the four wheeler you own and are revised annually.
The third party insurance cover has similar inclusions for a private and a commercial vehicle. Here is a snapshot of what is covered under a third party car insurance cover.
Private Vehicle:
- Property damage of the third party.
- Accident leading to disability of the third party.
- Eventualities on road leading to the death of the third party.
- Damage to the vehicle of the third party.
Commercial Vehicle:
- Covers the legal responsibilities befalling on you towards the physical or bodily damage to the third party.
- Accidental death or disability of the third party due to an accident where you are responsible.
- Property or vehicle damage of the third party from an accident.
In short, a third party car insurance cover is a plan bought by the first party- the insured from a second party- the insurer for any damage done to the third party and the best car insurance plans cover:
- Expenses for compensation claimed by the third party in case of an accident caused by your car.
- Keeps you legally safe and complying as it is the basic insurance for your car mandated by the Motor Vehicles Act, 1988.
- Covers the third party and removes your liability of bearing the compensation entirely from your pocket.
Is your Plan Benefitting you?
While the best third-party car insurance cover supports you in case of an eventuality where their third party or their property is damaged, a comprehensive cover offers protection against any damage that happens to your car during an accident. Since a third party car insurance will assist you in paying off the compensation to the third party, there will still be significant damage done to your car which might cost a heavy blow on your pocket. A comprehensive cover is a complete package that offers third party liability cover, theft of your vehicle, personal accident cover and damages to the car in case of an accident. You can also opt to bump your comprehensive cover by additional boosters that covers the accessories, protection to the engine, zero depreciation cover and cover for the medical expenses in case of an accident.
Apart from providing cover to your vehicle and you in case of an accident, a comprehensive cover also provides adequate protection in case of damage of your car by an animal, or by natural calamities, vandalism, theft or fire. Though a comprehensive cover is slightly costlier than a third-party cover, it can be safely regarded as the best car insurance plan since it provides you overall cover of self and that of the third party. Shelling out a few bucks on a comprehensive cover premium will not hurt much compared to the expenses that would befall in case of an eventuality.
There are plenty of car insurance plans available in the market which can be compared on Coverfox.com before you choose the one which best suits your needs. Though some may seem lucrative, it is crucial that you weigh your needs and do your own homework before you buy the best third-party car insurance.