Branded content: Third-party motor insurance cover with Bajaj Allianz

This is all it is advisable find out about third get together insurance coverage and its premium charges.

Revealed On Mar 27, 2023 01:01:00 PM

Having a third-party insurance coverage cowl is a statutory requirement for autos in India. We have a look at its key options and the most recent premium charges.

Let’s face it, even should you’re the very best driver on the planet, accidents do occur. And whereas motor insurance coverage can’t stop accidents from occurring, it could protect you from the monetary affect. Having motor insurance coverage, particularly third-party insurance coverage, is important as a result of it not solely eases the monetary burden, however additionally it is mandated by the regulation.

Since September 2018, having a third-party insurance coverage cowl has been made obligatory underneath Part 146 of the Motor Automobiles Act (MVA), 1988. Not having this will result in penalties or varied different authorized implications. Part 146/196 of the MVA stipulates a positive of Rs 2,000 for a first-time offender and a positive of Rs 4,000 for a repeat offender.* Go to the official web site of IRDAI for additional particulars.

The premiums for third-party insurance coverage are decided by the Insurance coverage Regulatory and Improvement Authority of India (IRDAI). However earlier than we speak about premiums, let’s perceive the varied features of third-party insurance coverage. 

What’s a third-party insurance coverage cowl?

A 3rd-party insurance coverage coverage protects the primary get together or the policyholder from varied sorts of liabilities resembling unintended, authorized, property or monetary that come up when a 3rd partyor an individual who raises a declare suffers loss or harm brought on by the policyholder’s car. It’s known as a ‘third-party’ cowl because the coverage’s beneficiary is somebody apart from the 2 events concerned within the contract i.e., the insured and the insurance coverage firm.

Since third-party insurance coverage is obligatory in India, most insurers usually embrace it of their predominant automobile insurance coverage plan. However the sort of insurance coverage can be bought individuallyand when doing so, will be clubbed with a complete car insurance coverage coverage. *

What does third-party insurance coverage cowl embrace?

The insurance coverage cowl consists of protection towards loss of life of or bodily damage to a 3rd get together anddamage to any property of a 3rd get together. Nevertheless, it is very important observe {that a} third-party automobile insurance coverage cowl doesn’t protect the policyholder’s car. For that, a complete coverage could be required.

Let’s take an instance: a policyholder meets with an accident by which their car hits one other car, and the latter incurs a harm of Rs 20,000. And there’s some harm to the policyholder’s car as nicely. On this occasion, if the policyholder solely has a third-party insurance coverage, the identical will cowl the restore price of Rs 20,000 however not the harm to their very own car, which might solely be claimed underneath a complete cowl. *

Key benefits of third-party insurance coverage

Low-price: Third-party insurance coverage offers a elementary degree of safety to the policyholder at a cost-effective charge. It’s verylow-cost and is among the many least expensive insurance coverage covers accessible in India.

Straightforward availability: Since this insurance coverage cowl is required by regulation, acquiring it very simple. One should purchase or renew this insurance coverage on-line. Apart from, the sort of motor insurance coverage is simple to know and doesn’t contain finishing up time-consuming evaluation of product options.

Reduces the monetary burden: A 3rd-party motor insurance coverage secures the policyholder’s monetary obligation towards unintended dangers, providing financial in addition to authorized help.

Eliminates psychological stress: Along with serving to the policyholder adjust to the regulation, a third-party cowl additionally gives peace of thoughts. The unlucky occasion of an accident will be financially exhausting however with this insurance coverage, the policyholder needn’t fear about bills which will ariseand will be assured of the help from the insurer. *

Third-party insurance coverage premium

In early 2022, India’s Ministry of Street Transport and Highways introduced the premium charges for motor third get together insurance coverage cowl for the monetary yr 2022-23 (April-March). Efficient April 2022, the charges are as follows:

So, in case your car doesn’t have a third-party cowl but, getting one may guarantee a stress-free driveand safety if a declare is made towards you by one other individual. That stated, as a accountable driver, it is suggested to put money into a complete motor insurance coverage coverage to guard your self from the doubtless excessive prices of a giant accident declare. A automobile accident will be expensive, even should you’re not at fault. Paying for the repairs or substitute of your car, and probably going to courtroom, generally is a long-drawn-outand dear affair. That’s why it’s vital to purchase the appropriate degree of automobile insurance coverage from an organization with industry-leading insurance coverage merchandise and a repute for excellent claims service like Bajaj Allianz Normal Insurance coverage. *