Owning a car has become a very common thing today. It is great to have a car and travel from one place to another at our convenience. You need not depend on the crowded public transport systems. You can travel in comfort, but it can well be ruined within no time if you do not have the requisite documents with you such as the RC book and most importantly, AT LEAST a third-party car insurance.
The solution is very simple. You get an insurance policy for your car. According to the Motor Vehicles Act, it is mandatory to have at least a third-party car insurance. Now the question arises as to which insurance policy to have, a comprehensive insurance or a third-party insurance policy.
You can refer to one of our earlier blogs on this subject at https://www.cocogeneralinsurance.com/benefits-keeping-third-party-liability-insurance-bike/. However, we shall list out the differences in brief.
The 3rd party car insurance coverage takes care of liabilities arising to third party individuals and their vehicles/property in case of damage caused due to accidents involving your car. Ironically, this insurance does not cover damages to your car. You need to take a comprehensive car insurance policy to cater to such exigencies.
When you buy a new car, usually the auto dealers arrange for the comprehensive car insurance. Most people to choose to buy this as it appears like it’s a bundled cost. This policy covers the cost of damages to your vehicle as well as to the third-party vehicles and individuals. Owners usually opt for a comprehensive insurance for the first five years of the vehicle.
This is when the vehicle has a clearly defined IDV (Insured Declared Value). A comprehensive insurance policy is very useful because it can take care of damages to your car. However, as the value of your car dwindles with age, you might not be ready to spend your hard-earned money on buying a comprehensive car insurance policy. A few scratches and bumps are cheaper to repair yourself rather paying higher premiums.
Possibly, you won’t even use it that much. This is when complacency creeps in and you may start to get the idea—that you don’t really need insurance. The car barely sees the road doesn’t it?
Wrong. It takes one nakabandi to ask you for papers that you don’t have. You’ve lost INR 1000 in fines (currently—which is supposed to go up till INR 2000 with the new Motor Vehicles Act). That’s potentially every time you leave the house in your car.
It could get worse—you could cause and accident with another person, vehicle, or property—you’ll have to pay the damages yourself! Not the most caring thing you can do.
It is better to opt for third-party car insurance in such cases. It’s legally mandated to do so, and it helps you stay worry free and drive with more focus and enjoyment.
As the name suggests, this policy covers damages to third party vehicles and cost of treatment of injured third-party individuals. This policy covers the compensation amounts you must pay in case of death/injury to third party individuals or damages to third party property.
The costs of repairs to equipment can be huge. Hence, it is better to have third party insurance to help you tide over the financial crisis.
Exclusions Under This Policy:
The third-party car insurance policy does not cover damages to your car.
It does not cover theft or any other kind of damage caused due to natural calamities like floods etc.
Yes, you can. Sometimes, these policies can save you money. In case of minor damages to third-party vehicles, you need not claim from your comprehensive insurance policy. You can use the third party car insurance. This saves your No Claim Bonus.
Yes, you can port your third-party insurance policy into any other motor insurance policy of your choice provided you place your request and fill up the portability form at least 45 days before the policy renewal date.
Yes, there are facilities where you can buy your third-party car insurance online. It is very easy to buy as well as renew online. It is also the easiest to obtain because it involves minimum documentation. This is again because the insurance doesn’t cover damages to your bike. You could sit online for a few minutes and be insured (it needs no bike inspection!).
So while comprehensive policies are better at covering your car’s losses—there are occasions or life stages when they’re not something you need. Currently in your life. Your usage could be lower, the age of the car could be higher—that is a decision you should make.
Third-party insurance policies come in handy during these times. So as a reminder, always care for your peace of mind and make sure to get snag at least a third-party. Don’t drive without it! Regardless of whether you feel like opting for the more expensive comprehensive policy or not.
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