Why is third party cover mandatory in India?

Every person who owns any sort of vehicle in India needs to get it insured. Accordingly to Indian Traffic Law, third party insurance is the minimum legal level of cover that a consumers needs to own. Legislation introduced in 1930 makes third party insurance the legal minimum level of insurance you need to drive your vehicle on public roads.

Basic third party coverage can be bought at reasonable rate and is enough to get your dream machine on the roads. Besides, it also provides the additional peace of mind frame for consumers.

The article gives insight why third party insurance is necessary for your vehicle?

Third party coverage’s are basically the minimum amount of protection that we can buy for our vehicle. Unfortunate incidences never come with warning. You may never know on one odd day you’re just driving your vehicle and suddenly you meet with an accident. This accident might cause a third party damage of place or things, or at times even physical damage to person or cause his or her life. Therefore, Indian Tariff law makes it mandatory for the vehicle owner to hold minimum of third party cover in their interests (third party) to settle down the dues for such damages.

Third party insurance covers you against physical damage to another vehicle or structure; injuries to a third party or your own passengers; and medical treatment cost and legal cost claims against you. However, these covers are third party compensation oriented insurance. If you were to suffer an injury in an any form of accident which is deemed to be your fault or your vehicle sustained substantial damage in the crash you will not receive a single penny for it. And neither will you get any compensation if the vehicle is stolen, vandalised in the street or damaged due to natural calamities and so on.

Third party insurances are usually cheap. These form of insurance prove very beneficial for young drivers or new drivers who have less experience in driving and hold high risks of unfortunate incidences like accidental damages. Just like third party insurance you get third party fire and theft. This offers the same benefits as third party only but also protects your vehicle against fire damage and being stolen.

Besides, third party coverage there are comprehensive coverage which takes care of damages or losses on both the fronts.  Comprehensive coverage takes care of accidental damage cover for your own car and, more importantly, yourself such as medical expenses.

Before choosing an insurance policy it’s better to understand few facts. Understand what is your budget? Are you an experience driver? Is there a safe parking space for my car? Are there any security elements in my car? Such would be ideal question that will help you gauge your comprehensive cover. Comprehensive covers are usually expensive. Depending on which insurer you choose, it might even work out as a better option than basic third party insurance coverage. It is advisable anyone who owns a high value vehicle should definitely opt for a policy with greater coverage along with third party insurance, as any slight attempt of savings those extra bucks on the premium may cause huge losses in any sort of crisis ever.