All you need to know about Third Party Liability in car insurance

When we drive a car, there is a very real risk that due to an accident, there can be a bodily injury or even death of a person either in the car or outside the car. There can even be damage/loss to the property of others. Good news is that you can cover these risks by purchasing something known as “Third Party Liability Car Insurance”.

 

What is third party liability car insurance?

It is basically a risk cover whereby in case of an unfortunate event, your insurer will compensate you to the extent of your legal liability in such a situation. It is important to note that as per Section 146 of Motor Vehicles Act 1988, third party insurance is mandatory & one cannot ply a vehicle on Indian roads without this general insurance.

 What does it cover?

Death of or bodily injury to any person including occupants carried in the vehicle

Damage to property other than property belonging to the Insured or held in trust or in the custody or control of the Insured

 

How much does it cost?

The good thing about third party car insurance is that it is very cheap. For example, if you go for a comprehensive car insurance for a mid-segment car (which covers own damage along with third party liability), it will cost you in the range of Rs. 10,000- Rs.12,000. However, if you buy only a third party liability cover, it will come in less than Rs. 1,000, which is a small fraction of overall cover. Also, since third party cover is mandated by law, you’ll not find a differential pricing between different insures and premium will be more or less the same irrespective of the insurer you choose.

Documents needed at the time of claim

In case of third party liability car insurance, you’ll need to first intimate the insurer about the damage by calling on their customer care. Insurer will arrange to tow the vehicle to the nearest garage. For making a claim, you’ll need to submit the following documents to your insurer:

 

A claim form duly signed by the insured

Driving license copy

Police FIR copy

RC copy of the vehicle

Company stamp in case of company registered vehicle's original documents

Copy of policy document

A word of Caution- and a Case Study

 

When it comes to buying car insurance, you can never be too careful. You need to know exactly how the policy works and why.

[Source: https://www.tomorrowmakers.com/articles/car-insurance/all-you-need-to-know-about-third-party-liability-in-car-insurance]