This insurance policy covers damage to other people and their property from your vehicle.
What does party insurance mean?
A standard motor insurance policy mainly provides two types of protection: first, own damage cover and second, third party (TP) is also covered by the second party. On Damage, Cover provides damage to your vehicle in a road accident. On the other hand, third party insurance gives you cover against legal liabilities towards another person, including death, injury, damage to the vehicle or any other property.
Millions of road accidents occur every year in India. But despite so many accidents, many people do not pay attention to vehicle insurance. Actually, we have a concept of avoiding challan only on
insurance. Nonetheless, third-party motor insurance is very important in auto insurance and most people are unaware of the savings and benefits it brings.
Today we will tell you about third party motor insurance and its benefits.
- In the event of an accident, the motor insurance policy provides you with two main types of protection. One is the loss of the insurer, which is called (On Damage) and this compensates for the loss of the insurer. For example, any breakage or damage to the vehicle, etc. Apart from this, the third party ie the other person whose loss is due to this accident, the compensation is also covered in this insurance.
- In this insurance, the first party insurer, the second party insurance company and the third party is the person who has suffered any damage, injured, fractured or died during the accident. In such a situation it is the responsibility of the insurance company to compensate for the injury, breakage or property damage of the person injured in the accident. Third-party insurance gives you cover against legal liabilities towards the other person.
- As it is clear, the first cover applies to any damage done to your vehicle, while third party insurance protects you against any damage caused to a third party. Of the above two, the third party is the only insurance, which is mandatory under the Motor Vehicles Act. This is the reason why insurance companies, apart from being part of a broader policy, also sell separate third party insurance policies.
If you have a motorcycle, car or any other vehicle, then it is important for you to know about motor insurance. It has many advantages. It is also legally necessary to buy it. This insurance protects you in the event of an accident. Here we are telling you about third-party motor insurance.
Under the Motor Vehicles Act
- it is necessary to take third party motor insurance or third party insurance cover for all motor vehicles.
- It is the first party to insure. The insurance company is the other party. The third party is the one who suffers losses from the insured person. Only the third party claims for damages.
- This insurance policy covers the damage done to other people and their property from your vehicle.
- The damage done to your vehicle in the accident has nothing to do with it. You do not get any kind of cover even if you get hurt.
- Claims are not considered valid in situations such as driving under the influence of narcotics such as alcohol or drugs, driving without a license, intentionally causing an accident.
Third-party share also in insurance coverage
Third-party coverage is also accounted for in this insurance coverage. Third-party coverage constitutes a small portion of total insurance. The premium for third party coverage is decided on the basis of suggestions of the fee advisory committee set up by the insurance regulator IRDA. In this coverage, compensation for the affected party is determined based on his income.