06/12/2023
Third-party insurance is a type of insurance cover that is mandatory for all vehicle owners in India as per the Motor Vehicle Act 1. It is also referred to as ‘act-only’ insurance and offers protection against damage to the third-party vehicle, personal property, and physical injury. The policy does not provide any coverage to the insurer
1. If a policyholder meets with an accident, then the insurer offers financial assistance to pay for the cost of repairs to the third-party property. Thus, it reduces the financial burden for the policyholder. In the event of an accident, the insured must inform the insurance company about it immediately before filing for a claim. When the claim is filed, the insurer appoints a surveyor to assess the damages and verify the estimated cost of repairs. Once the verification is completed, the insurer settles the claim
Some benefits of buying third-party liability insurance in India include:
Financial assistance and legal cover: It covers the legal liability of the insured in case of injury, disability, demise, or any loss or damage to property of the third party. It offers financial assistance to the policyholder in case of an accident
Complying with the laws: Third-party car insurance (TPPD) policy is mandatory in India, and if you are caught driving your car without or without this policy, you can be penalized .
Affordable premiums: The premiums for third-party insurance are affordable and same across insurers
