5 Reasons Why Just Third-party Car Insurance is Not Enough

If the third party affected by your insured vehicle wants to file a claim, they will have to submit an FIR charge sheet to request compensation for their losses. In case there are injuries caused to a third-party person, then a copy of the medical bills will also be needed. With the above mentioned points, it is clear that the third-party car insurance coverage is not enough to insure your car. It is important to know that a comprehensive car insurance policy provides coverage to your own car as well as third person or property.

• Several a times, you need to pay for damages from your own pocket.
• Depending on the damage, this compensation can be too much for you to pay out of your own pocket.
• Also known as third-party liability insurance, third-party car insurance is a type of coverage plan that assists you in covering any legal or financial liabilities that arise out of an accident.
• If you are opting for 3rd insurance for your bike, it is time for you to have a comprehensive look at it.
• You can choose from popular Add-ons such as Zero Depreciation, Roadside Assistance, NCB Protect, Return to Invoice, etc.

No, a third party car insurance plan, though mandatory, offers limited coverage against third party losses only. Hence, you cannot include any add-ons, even zero depreciation add-ons, to your third party car insurance plan. A comprehensive car insurance is more expensive than a third party policy simply because a comprehensive policy premium covers both third-party liabilities and own damages. Additionally, your car insurance premium in a comprehensive policy also factors in various factors such as your car make and model, city, car insurance add-ons opted for, age of car, etc. Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act.

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With a motor insurance, you need not to worry about the financial burden arising due to a third party liability. As the motor insurance also pays for Own Damage, it also covers you against your vehicle damage or bodily injury. Enjoy financial indemnification in the event of any such loss under the scope of your motor insurance policy.

• Since the settlement or claim amount depends on IDV, it is essential to ensure your insurer doesn’t undervalue your vehicle.
• The 3rd party car insurance gives you coverage from financial liability in case your vehicle was involved in any accidents that might have caused damages to life, limb, other vehicles, or property.
• Hence, you cannot include any add-ons, even zero depreciation add-ons, to your third party car insurance plan.
• As the name suggests, this will only protect you from damages and losses caused to a third-party and won’t cover for your own damages.
• ICICI Lombard will cover all liabilities that are included in the terms and conditions of your coverage.

„Thus, it is important for you to cover loss or damages to the vehicle as well as liabilities for injury to a third-party by opting for standard motor insurance,“ he added. In 2018, the Insurance Regulatory and Development Authority of India allowed insurers to offer three types of motor insurance plans. These were bundled insurance, standalone long-term third-party policy and long-term comprehensive insurance plan. CreditMantri was created to help you take charge of your credit health and help you make better borrowing decisions. If you are looking for credit, we will make sure you find it, and ensure that it is the best possible match for you. We enable you to obtain your credit score instantly, online, real time.

What documents should I submit when raising a claim for a third-party car insurance online?

A long-term comprehensive policy is applicable only for new cars and two-wheelers . It provides 3-year comprehensive covers for cars & 5-year comprehensive covers for two-wheelers. The comprehensive cover includes both vehicle OD policy and third-party insurance.

In a vehicle accident claim, your insurer will deduct a depreciated value for the specified damaged parts and the claim amount you receive is not just enough to cover the financial loss. With this rider, your insurer will not deduct any amount toward depreciation count while settling claims. A motor insurance provides cover against the costs that arise due to a third party liability. You can also get Own Damage cover under a comprehensive motor insurance cover.

Riders in motor insurance are optional add-ons that enhance the insurance coverage. It provides vehicle owners with the additional and valuable advantages. Listed are the common riders available with motor insurance policy.

To save you from an unpleasant shock at a future date, we have compiled five strong reasons as to why third-party insurance is not enough for your bike. Whether you want to buy third-party insurance or renew it, you can do so from the comfort of your home. You can have one of our insurance agents visit you and collect the premium cheque. You can also visit your nearest LGI branch or consult your insurance advisor to buy and renew your insurance plan. Traffic police in the country have the right to stop you and ask you to show the necessary documentation.

The biggest advantage of comprehensive car insurance is that it covers all kinds of damages to the vehicle such as personal accident, third–party liabilities and theft. Besides, the cover also protects from damages due to natural and manmade disasters such as fire, strikes and riots. This end-to-end coverage will save you from costly repair works in case of a mishap. The premium for a comprehensive policy is slightly higher as compared to that of third-party car insurance but the coverage is extensive. It is the best way to protect the vehicle and avoid huge expenses due to an accident.

As per the Motor Vehicles Act, you need to have basic insurance coverage to legally drive on the road. Every driver and every vehicle can become a part of an accident. In an accident, you might end up damaging your car and hurting yourself.

Thankfully though, a comprehensive car insurance can help you in this case by compensating for the loss of the same. Trade logo displayed above belongs to ACKO Technology & Services Pvt Ltd and used by ACKO General insurance Limited under License. For more details on risk factors, terms, conditions and exclusions, please read the policy wordings carefully before concluding a sale. In the event of car keys being lost or left in the car, key replacement cover efficiently assists you to unlock the vehicle in such scenarios. This add on cover includes the cost of making duplicate key if the key is lost and also the cost of lock if the lock needs to be replaced following the loss of a key. Note – While we have made all efforts and taken utmost care in gathering precise information about the products, features, benefits, etc.

The Right Car Insurance Policy

This will directly then affect your premium and claim amounts. What’s great about a comprehensive car insurance is, that while protecting you and your car, it also protects you from losses in case you damage a third-party person or property. 3rd party car insurance price is not actually calculated by the insurance company. IRDAI has made it a mandatory thing under the Motor Vehicle Act, 1988; it calculates the premium amount on the engine capacity of the car.

I received an excellent support from your sales executive to get my old Car Insurance renewed with ICICI Lombard. He explained all the intrinsic details about the policy that I was looking for. His explanation and inputs helped me to make a decision of buying this policy. As third party and stand-alone own-damage policies have different type of coverage, you can avail the two policies from different insurers.

„You can go is third party insurance enough for car, compare the prices of premium offered by different insurers and then, choose the best suitable option,“ he said. Also, if you don’t want to renew the standalone OD policy, then your third-party insurance will remain in force till the end of the 3-year term. Animesh Das, Head of Product Strategy, ACKO General Insurance said that new cars or two-wheeler owners need to take long-term third-party cover for 3-years for car and 5-years for bike mandatorily. „You can now buy standalone Own Damage policy from the same or other insurer over and above third-party cover,“ he said. Therefore, those who have a long term third-party only cover can now buy and add the OD cover in the second or third year as well. Therefore, you can renew the standalone own damage policy with the existing insurer or different insurer only on an annual basis.

What is the maximum compensation offered as part of this policy?

Moreover, you would have to cover all the financial and legal liabilities arising out of the incident. Under our comprehensive car insurance policy, you also have the option to customize your car’s IDV. As the name suggests, a third-party car insurance will only cover for third-party related liabilities and damages to one’s own car won’t be covered under this policy. Any claims made in a situation where you were driving under the influence of alchohol won’t be covered even in a comprehensive car insurance.

I’d been looking up car insurance quotes online when your executive gave me a call. She sold me the idea of renewing my insurance with ICICI Lombard by highlighting the policy benefits like personal accident cover of Rs. 2 lakh, and coverage against third-party legal liabilities. He explained clearly the ins and outs of your car insurance plan including benefits such as inbuilt personal accident coverage. The polite way in which he answered each and every of my questions convinced me to purchase the policy.

The third-party insurance will not give you coverage if your car gets into an accident on account of drunk driving. So, having third-party cover allows the policyholder to comply with the legal obligation. When you are looking to buy a motor insurance for your vehicle, it is important to go through the following key tips to make a smart move. It is a major determining factor for calculating the premium amount. The higher the cubic capacity of your vehicle’s engine, higher will be the premium amount.

Inclusion / Exclusion of third party Insurance Plan

Following are some of the key factors held accountable for determining the premium amount for a Motor Insurance policy. Basically, first party is the policyholder, second party is the insurer, and third party is the third person. Access our extensive network of over 4300+ network garages offering cashless assistance all over India. With LGI, you do not need to worry about not having enough cash to pay for vehicle repairs. Credit repair involves rebuilding your credit health to a level where you become eligible for loans.

ICICI Lombard will cover all liabilities that are included in the terms and conditions of your coverage. We will compensate the third-party for injuries and property damage. Hence, having a third-party insurance cover reduces the financial burden in the case of an accident or any other mishap. A comprehensive cover comes with many optional riders that provide additional coverage at a cost.

The bearer of third-party insurance will be covered for any losses up to an infinite liability limit. According to the Motor Vehicles Act of 1988, you must insure your car in order to lawfully drive on Indian roads. Getting this basic third-party insurance will save you money on expensive traffic fines.

Also, a registered member of an automobile association can avail discount on premium. One of the prime benefits of buying a motor insurance is the legal protection. You never have to face a third party liability that may arise due to any damage to the other vehicle. A natural calamity such as earthquake, storm, hurricane, cyclone, etc. could damage your vehicle. To tackle this scenario, you must buy motor insurance that provides financial protection by taking care of the losses within the scope of the policy.

A comprehensive car insurance policy protects the interests of the policyholder’s car. Coverage Details It only offers coverage for third-party damages and losses such as if due to an accident or collision, you hurt a third-party person, his/her vehicle or a third-party property. Additionally, it also includes a personal accident cover to protect you from personal injuries or death. In case the police enquire, furnish details of the insurance company and make a note of the First Information Report number, if applicable.

I’ve renewed several of my insurance policies in the past, but my experience while renewing car insurance with ICICI Lombard was the best. Your agent explained clearly and understandably all policy-related details. I’ve decided to renew all my other insurance plans with you in the future. Accidents put you at a great risk of not just property damage but also of physical harm to both parties involved. If the accident was caused by your car, you are liable to compensate for any injury or death caused to others.