Why is vehicle insurance a compulsion?
It's imprudent to ignore the possible risk associated with driving or riding on streets for both travellers and vehicles alike. Thus, In India, any vehicle to drive on the road for social, personal or business purposes should be mandatorily insured under the provisions of the Motor Vehicles Act, 1988.
Benefit of having vehicle Insurance?
An appropriate vehicle or motor insurance safeguards you financially from many types of liabilities occuring due to any unfortunate setback to your vehicle (car or two-wheeler). Liabilities that could emerge from natural calamities such as earthquake, flood, lightning or man-made such as accidents and theft among others.
How do you buy vehicle insurance?
Insurance can be purchased against payment of premiums based on calculations offered by the insurer for coverage. Premium may vary from insurer to insurer and calculated on underlying factors such as car model, its age, accessories, driving pattern, etc.
Types of Motor Insurance?
We offer 2 types of Motor Insurance Third party and Comprehensive for vehicles (car or two-wheeler).
Third Party
This type of insurance is the minimum legal level of cover needed to operate your vehicle on the road, a vehicle without at least a third party insurance on road is deemed illegal. It offers you protection against physical injuries, disability, damages to the vehicle, damage to the property, and death arising towards a third party by your insured vehicle.
How does Third-Party Insurance work?
Third-Party Insurance is sometimes also referred to as the 'act only' cover, is a statutory requirement under the Motor Vehicles Act. Under Third-Party Insurance, the policy does not offer benefit to the insured but the insurer offers financial assistance to pay for the cost of repairs to the third-party property. In other words, third party insurance policy covers the insured's legal liability for damage to property or death/disability of a third-party.
In an unfortunate event such as an accident, the insured must inform the insurer (insurance company) about the event immediately or within the stipulated time (as mentioned in the policy document) prior to filing of any claims for settlements and to get compensation from the insurance company. Next, The policyholder is expected to also file an FIR with the nearest police station from the spot of the accident, and get a copy of the same. In this process, insurance companies appoint a field surveyor who visits the location or property insured in order to verify and assess the extent of damage, facts and generate estimates for repairs or replacements. Post verification and assessment the report is generated and submitted to the insurance company office for processing the information for settlement of claims.
What are the common details to learn about Third Party Insurance?
Third-party insurance offers a very basic level of protection
Third-party insurance is also referred to as liability-only or act-only policy
Third-party insurance offers protection against the legal liability to a third party
Third-party insurance compensates for the personal injury, loss of life, and property damage to the third-party
Third-party insurance has a comparatively affordable premium
Third-party insurance does not offer protection to the insured in terms of compensation for property damage.
