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Things You Should Know About Third Party Motor Insurance Plans

The Motor vehicles Act in the country makes mandatory for all vehicle owners to have motor insurance to get their motor vehicles insured under a third party insurance though the comprehensive cover is more extensive to give you full benefit of your policy. So as per government mandate you need to have a third party cover.

The question is what is a third party motor insurance? A third party motor insurance also known as “act only “cover. Under a third party policy only damage to a third party is cover. In case of liability from damage in the form of death or property being damaged to a third party because of acts of the policy holder arises then the third party coverage comes in force.

Key points to look into in case of third party motor insurance:

  1. It is the primary regulatory mandate for every motor vehicle owner
  2. A claim in a third party motor policy arises only when there is a damage happening to third party as death or damage to a property happens
  3. A third party motor insurance policy doesn’t cover for the losses happening to the policyholder and corresponding loss happening to the vehicle of the policy holder. For the owner of the vehicle to be covered a comprehensive policy is always advised. Always use compare Motor Insurance Online Plans before you buy a comprehensive policy
  4. The premium paid against a third party policy is always very low. Previously the premium amount was defined by Insurance regulatory and development authority of India but in present context Insurance providers are suppose to price them as per their risk bearing capacity.
  5. A Third party insurance claim is entirely fault based. The third party needs to prove that the damage happening due to acts of the policy holder.

 Though third party motor insurance Plans is the cheapest form of motor insurance and fits well as the regulatory requirement but it actually you don’t have any value for the money that you pay for it, A insurance policy provided by any insurance company has in built third party cover.

Keeping in view of your requirement, in today’s world comprehensive policy is always advised. Comprehensive policies also come with features like Personal accident cover in built in them to give better benefit to the policy. Other than that there are features like cashless claims, road side assistance etc make the comprehensive motor insurance policy more valuable. There are many insurance providers today in the country which have very differentiated offers that suite specific needs of the policy holder so it is always advised to do a online comparison to buy so that you don’t end up paying for the wrong product/plan.