Saturday, 26 Sep 2020

Third Party Insurance Latest News

Everyone believes that you are secure with Insurance. But still, there are 60% of the vehicles are not insured in India. With this reckless practice about 1 lakh, innocent people are killed in a year.

The Supreme court has made it compulsory from 1st September 2018

  • 5 Years insurance for Two Wheeler
  • 3 Years insurance for 4 Wheeler

So let’s look at Benefits? and limitations?

Why anybody need third party insurance?

Let’s say a car ran through a person and was killed on the site. And a huge compensation was claimed by the family members, as victim’s job is the only source of income.  But the vehicle owner cannot afford the claim.

Both the parties will revolve around the court for justice.

If there is a third party insurance for the vehicle this situation will not arise.  The lost life cannot be brought back but the victim’s family can be supported with a decent compensation.

What is Third Party?

In insurance terminology

  • The vehicle Owner is called FIRST PARTY
  • Insurance Company is called SECOND PARTY
  • Party who is no way related to the first and second parties is called THIRD PARTY

By any means, a damage is caused by the vehicle owner who is no way related to the vehicle owner and they are hurt, or dead, or any property damage the insurance company will bear the compensation.

If the damage is caused to the owner’s vehicle or passengers in the vehicle, or the owner himself gets hurt / dead the third party policy will NOT give the coverage.

If you need a coverage here, you may need to take a comprehensive policy. The comprehensive policy will give the coverage for Two and Four Wheeler passengers as well.

Basically, third-party insurance gives a coverage for those who get affected and is NO way related to the vehicle owner.

What is the need for long-term insurance?

Around 1 Lakh of people are killed in a year from road accidents. And there are more like Pedestrians, passengers in other vehicles, and people who live next to roads are getting hurt.

Supreme Court has conducted a survey on Highway accidents and made it compulsory for all the vehicles starting from September 1 2018.

Benefits of Third Party Insurance

  • All the new vehicles purchased from now, come with a Long-term insurance.
  • 3 & 5 term insurance gives a relaxation for the those who insure their vehicles every year.
  • The insurance company will stand for the victims who get affected by the accidents and lost their property, gets hurt, or even lost their lives during the court procedures.
  • During the accidents, if the third party get hurt, the insurance company will take care of the medical bills. Along with the property losses.
  • People who get compensation for property losses are dead, then there won’t be any compensation.
  • Depending on the earnings, age, family situations, dependencies for the victim the insurance company may also give compensation in crores.
  • Third party policies premier is less compared to comprehensive policies.
  • Policy can be purchased online with very few documents.
  • Most Important of all, Unfortunate victims killed in the accidents will get compensation along with financial support.

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