Coverage under Third Party Damage

Third Party damage – A lot of people get confused when it comes to buying a vehicle insurance. The confusion starts right at the point when you come to know that there are two types of vehicle insurance plans. Third-Party insurance and comprehensive cover. This confusion increases even further when you start looking for plans and find out that the market is flooded with plans from different companies like Bajaj Allianz two wheeler insurance, ICICI motor insurance and many others. Now, the only way to get over this confusion is to make yourself more aware of the concepts of Vehicle insurance. Well, luckily today in this article we are going to discuss in detail about one of the 2 types of vehicle insurance. Today, we are going to take up third-party two wheeler insurance. We will start from the basics and then carve our way to understand the coverage provided by it, exclusions and the claim procedure. So, if you want to understand third-party vehicle insurance in detail, then stick around till the end.

What is Third Party Liability Insurance?

A Third-party insurance is the most basic form of vehicle insurance and therefore, it is referred to as the ‘Act Only’ plan. These plans provide coverage only for the third party damage caused to the third party in an accident caused by you while you were using your vehicle. For those of you who are scratching their heads thinking who is the third party? For your information, in case of a third, party plan the first party is you, the second party is your insurer and the third party is any other party who got into an accident caused by you.

The protection provided by a Third-Party vehicle insurance

As you have read above that third-party insurance plans are basic vehicle insurance, therefore, the coverage provided by them is also basic in nature. It provides compensation for any damage caused to the third party in an accident caused by you while you were using your vehicle. The damage caused to the property of the third party, vehicle or physical injuries are covered. The compensation from a third-party plan is provided only if the court’s verdict suggests so. More about the claim procedure will be discussed in further sections.

Coverage under a third-party plan even includes financial and legal assistance besides the damage compensation. Legal assistance proves to be of great help in cases when bodily injuries are caused to the third party or even death. Legal assistance includes lawyer fees too.

Some of the popular third-party vehicle insurance plans available in the market right now are HDFC Ergo 2 wheeler insurance, Bajaj Allianz two wheeler insurance and ICICI motor insurance.

Exclusions

  • As the name suggests, the protection provided by a third-party cover is only for third party damage. No coverage for personal damage or damage caused to the vehicle is provided.
  • Third Party insurance plans do not come with any no claim bonus benefits. This means that even if you don’t make any claims from your insurer against your third-party cover, you don’t get any discount in case of renewal.

Regulations regarding Vehicle Insurance in India

It is mandatory for every vehicle to have a third-party insurance in order to be driven around legally on Indian roads. This rule was implemented under Motor Vehicle Act, 1988 by the Indian government.

Claim Settlement

Before starting out this section, we are pretty sure that after reading this section, you would be wishing to never be in a situation to make a claim from third party cover of someone else. See, we gave it away in the start, the claim settlement of a third party is time taking and even after that you are never sure that you will get your compensation or not. Let us see why third-party insurance claim settlement is so difficult.

Let us assume that you are involved in an accident caused by someone else. Now, in order to get compensated from the third-party cover of someone else, you will start by filing an FIR of the accident in the police station nearest to the spot of the accident. The police will then generate the charge sheet of the case. After this, you will hire a lawyer who will file a case in tribunal court on your behalf against the person who caused damage to you and his third-party insurer. This will be followed by a fair trial conducted in the court. The court’s verdict will finally decide whether you will get a compensation or not. Even if the court’s decision in your favour, then also you cannot be sure that you will get compensation for the full the amount that asked initially. Plus, you cannot the same case twice in a court.

This is not all as there are 4 subdivisions which consider different scenario’s. these 4 subcases are mentioned below;

  1. When you have a third-party cover only
  2. When you have a comprehensive cover too
  3. When vehicles of both the parties are insured by comprehensive plans
  4. When damage is caused only by the vehicle

In many cases, you will find that both the parties settle the dispute themselves in order to avoid taking the matter to the court. The accidents which involve bodily injuries, permanent body damage, loss of income or death are the ones which are commonly taken to the court. The crux and easy way out of this claim settlement mess is to get a comprehensive insurance plan which also provides third-party liability insurance benefits like plans from Bajaj Allianz two wheeler insurance.

Conclusion

Third-party insurance is very important for both legally driving your vehicle and to have a peace of mind that your insurer will take care for any damage caused to the third party. We hope that you learned something useful about third-party vehicle insurance from this article. To get the best deal for your third party cover you can check out plans available online. Companies like Bajaj Allianz two wheeler insurance and HDFC Ergo vehicle insurance provides a great deal on both comprehensive and third party insurance cover.

Also Visit: Ways To Learn The Characteristics of Insurance Company