When it comes to car insurance, there are three main types to consider: third–party liability insurance, own-damage insurance and comprehensive insurance. The reason to choose a type of insurance depends on your needs, the coverage it offers, your budget, etc.

This blog will focus on third-party liability and what it covers.

Third-Party Liability Car Insurance Meaning 

Third-party liability insurance offers insurance coverage against damages or losses caused to a third-party person or property. Additionally, third-party liability car insurance covers third-party bodily injury or death.

Similarly, this insurance plan covers the expenses incurred to repair third-party property damage caused by your four-wheeler. Third-party liability car insurance also offers coverage for the legal expenses that you might incur because of an accident. 

Additionally, third-party car insurance prices are also relatively lower than those of other policies due to their limited coverage.

Lastly, it is essential to note that there is a mandatory third-party liability coverage law in India for all vehicles- as per the Motor Vehicles Act (1988). This means that you cannot legally drive a four-wheeler in India without valid third-party liability car insurance coverage.

What Third-Party Liability In Car Insurance Covers 

A Third-party liability car insurance plan covers policyholders for the costs incurred because of the following reasons:

  • Bodily injury to a third party or death of a third party.
  • Damage to a Third-Party car because of the insured car.
  • Damage to third-party property to a specified limit (this limit will be mentioned in your policy document).
  • Coverage for personal injuries

What Third-Party Liability In Car Insurance Not Cover 

A Third-party liability car insurance plan does not cover policyholders for the costs incurred because of  the following reasons:

  • Cost of damages to a four-wheeler or the belongings in the four-wheeler in case of an accident.
  • Coverage against damages to your own four-wheeler.
  • Cover for losses incurred if your four-wheeler or belongings are destroyed or stolen.

Factors To Consider While Purchasing Third-Party Liability Car Insurance 

While third-party liability in car insurance is mandatory by law, you must keep in mind the following factors:

Does Not Offer Coverage For Your Own Damages 

Your 3rd party liability car insurance policy will not provide coverage against the losses and damages to your own car.  To protect your four-wheeler financially, you must buy a comprehensive car insurance plan from a reputable insurance provider. 

You Cannot Opt  For Add-On Covers 

There are several add-ons like engine protector, nil depreciation, consumables cover and more that enhance the coverage of your policy. However, you cannot opt for these add-on covers with third-party liability car insurance. You can only buy them with a comprehensive car insurance policy.

Does Not Offer Coverage For Damages Due To Natural Calamities 

Natural calamities, including tsunamis, floods, and earthquakes, can also significantly damage your four-wheeler’s engine and other essential components. However, third-party liability car insurance does not cover damages caused by natural elements.

To Wrap It Up 

If you are looking for an affordable car insurance policy that meets the legal requirements, purchasing a third-party liability car insurance policy might be your best option. It provides essential coverage for damages or injuries caused to others in an accident, ensuring that you comply with the law while keeping your insurance costs manageable.

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