1. Third Party Liability

This is one of the major aspects which is included in a car insurance policy. In situations wherein your car is involved in an accident that causes damage to the property of any third party, your policy covers the costs to be paid for their losses too. Also, in case of injury or death of a third party, your car insurance shields you from any ensuing legal liabilities.

2. Personal Accident Coverage

Another benefit of having four-wheeler insurance is that it offers cover in case of personal accidents. The amount of coverage is pre-determined. This feature provides monetary protection for personal injuries or fatalities sustained in an accident that involves the insured vehicle. The insurance policy not only covers the casualties caused to the driver but can also be used to protect other passengers up to the pre-determined amount under the car insurance plan.

NOTE: Protects passengers only if traveling as per the vehicle’s seating capacity.

3. Vehicle Repairs

Car accidents can be traumatizing. You are never truly prepared for the mental, financial, or physical after-effects. However, the overall stress on your shoulders can be reduced with a comprehensive four-wheeler insurance policy that foots the heavy bills that follow. If your vehicle suffers damage due to an accident, the insurance company assumes liability for a good deal of the expenses incurred for repairing the car.

4. Car Theft Protection

Finding your vehicle stolen can be extremely devastating. The good news is that a comprehensive car insurance plan covers car theft too. Once you file the claim, you are provided with the vehicle’s Insured Declared Value (IDV) after the car insurance company conducts their due process of inquiry.

5. No Claim Bonus Benefits

One of the major benefits of having car insurance is that you can enjoy the no claim bonus (NCB). Customers are eligible for this benefit every claim-free year. NCB makes insurance even more affordable for the policyholder and is usually given out as a discount on the premium.

6. Add-ons for Holistic Coverage

Another plus point of having vehicle/car insurance is that you can customize your car protection needs through add-ons. These add-ons truly enhance the scope of financial protection a vehicle has on the road. Here are a few popular four-wheeler insurance add-ons.

• Roadside Assistance
• Return to Invoice
• Zero Depreciation
• Passenger cover
• Engine Protection

While we cannot predict the occurrence of natural and man-made calamities, we can do our best to be prepared for them. With this in mind, the above-mentioned points prove how beneficial having a car insurance policy is. We hope this article helps you understand the importance of four-wheeler insurance today. Drive safe and take care.

To understand what a third-party motor insurance policy is, you need to know about the parties involved in an insurance policy.

• The first part is the insurance policyholder.
• The second part is the insurance company providing the insurance service.
• The third part is the beneficiary of the insurance policy.

In other words, the third party is the one who is reimbursed by the second party for the damage caused to them by the policyholder (first-party) in an accident.

The same applies to a third-party bike insurance plan as well.

Let us look at what is covered under the third-party car or bike insurance plans.

The conditions covered under this policy scheme are:

1. Reimbursement for the hospitalization costs of the third party if bodily injury is caused to them in an accident involving your insured car or bike.
2. Monetary compensation for the third party’s family in case of the third party’s death.
3. Compensation for the third party in case of permanent bodily damage to it due to the accident.
4. Reimbursement for the third party for the property damage they faced in the accident.

Let us look at how the third-party car insurance claim procedure works.

This procedure is similar for third-party bike insurance as well. It is as follows:

1. The affected third party has to file an application against the first party that caused the accident.
2. They have to lodge an FIR at a police station near the spot of the accident and register their details, that of the first party and witnesses if any.
3. They have to file a case at the motor insurance claims tribunal. The court will go through the details of the case and the documents submitted to them. The court will decide the amount of money the first party has to pay to the affected third party to cover the damages done.
4. The second party or the insurance company will pay that amount to the third party on behalf of the first party.

Note that the third-party car insurance policy does not reimburse the cost to cover the damages that the first party faced in the accident. We hope that you are now armed with knowledge about a third-party motor insurance policy and how it helps in protecting you against any natural or manmade calamities. Have a nice day!