Third-Party Insurance: You risk a steep fine or possibly even jail time if you are discovered to be operating a vehicle without a current insurance policy. You would also need to pay for all of the incident’s associated legal and financial obligations. In this article, we will tell you all you must know about third-party insurance.
What is third-party insurance?
According to the Motor Vehicle Act, all car owners are required by law to have third-party insurance, sometimes known as “act-only” insurance. This kind of insurance coverage guards against bodily harm, property damage, and damage to another person’s car, all provided by the insurer. The insurer is not covered in any way by the insurance.
How does it work?
In the event that an accident occurs and the policyholder needs financial support to cover the cost of repairing third-party property, the insurer will make that offer. It lessens the policyholder’s financial burden as a result. In the event of an accident, the insured must notify the insurance provider right away in order to initiate a claim.
Upon filing a claim, the insurance company assigns a surveyor to evaluate the damages and confirm the estimated cost of repairs. The insurer resolves the claim after the verification is finished.
What all is covered?
Personal Damage to Third-Party
In the unlikely event that someone is killed or seriously injured as a result of your vehicle, third-party insurance will cover all associated costs. There is no cap on the amount that can be awarded in this situation because life is so priceless.
Personal Accident Cover
Your personal accident coverage is a must, regardless of whether you choose comprehensive or standard car insurance or third-party coverage. Your Third-Party Auto Insurance will cover your personal injuries in the event of an accident if this coverage is provided.
Property Damage Compensation
In real life, accidents resulting in property damage are not something you can get away with. Life is not an action movie. Fortunately, your third-party auto insurance will cover the loss on your behalf. You need to make up for the loss.
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