Third party insurance plays an important role in compensating you for the damages caused by an accident. There is a provision of a fine of up to Rs 2000 or a jail term of up to 3 months if caught driving a vehicle without third party insurance.
If you buy a new vehicle, then it is necessary to get third party insurance. From the year 2018, along with the purchase of all new bikes, it was made mandatory for them to get third party insurance for 5 years and for the purchase of a car for 3 years. Now the question is what is third party insurance and why is it so important? So you will be surprised to know its benefits. Let us tell one thing here that third party insurance is not of the vehicle owner, yet it is very important.
What is third party insurance?
First of all, on buying a new vehicle, it is mandatory for its owner to take third party insurance. Even though it does not provide cover to the owner of the vehicle, but the person who gets injured by that vehicle during any road accident gets insurance cover. It is also known as liability cover, as this insurance is related to the third party. There has also been a big reason behind making this insurance mandatory. Actually, the number of such people is very high, who shy away from getting their vehicle insured after one year, so keeping this in mind, the Supreme Court has made third party insurance mandatory for five years.
Effective in saving from financial loss
Now the biggest question is that when the vehicle owner does not get any cover from this third party insurance, then what is the use of taking it? So let us tell you that Third Party Insurance does not provide insurance cover to the vehicle owner, but it proves to be very helpful for them in another way. This insurance works to protect the insured from the financial loss caused by all vehicle accidents. In this, it covers the expenses incurred in the hospital after the accident or the cost of other legal work. The claim of all these is given by the insurance company.
Understand like this, Third Party means that
under Third Party Insurance, if there is physical damage caused to the person involved in an accident with the vehicle, then his damages are paid by the insurance company. Apart from this, the insurance company also compensates for the damage caused to the property under third party insurance. Here you have to note that under third party insurance, the insurance company compensates only for the financial loss caused by the accident. The insurance company pays the claim to the third party. Here the first party is the driver and the third party is the one who gets hit by the vehicle.
The insurance company gives the claim for these losses.
- Compensation for damage caused to another person’s vehicle
- compensation for damage to another person’s property
- Compensation for grievous bodily harm or death of another person
- Legal or court proceedings related to the accident
These damages are not covered in this insurance
- Compensation for damage to your vehicle
- No compensation for stolen vehicle
- Bodily harm to the vehicle owner
Penalty for not having third party insurance
Significantly, third party insurance plays an important role in compensating you for the loss caused in an accident. There is a provision of a fine of up to Rs 2000 or a jail term of up to 3 months if caught driving a vehicle without third party insurance. On the other hand, if the driver of the vehicle shows such negligence again and again, then both these punishments can be given simultaneously.
