Demystifying Third Party Car Insurance: A Comprehensive Guide

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third party car insurance,
third party car insurance

If you are a car owner in India, then having third-party car insurance is not an option, but a legal requirement. As per the Motor Vehicles Act, 1988, it is mandatory for all vehicle owners to have at least third-party car insurance. But, do you know what does third-party car insurance mean? How it works? And what benefits it provides? In this article, we will demystify the third-party car insurance and provide a comprehensive guide to help you understand it better.

What is Third-party Car Insurance?

Third-party car insurance is the type of insurance that covers the damages and losses incurred by a third party in an accident. In simpler words, if you cause an accident and someone else suffers injuries or damages to their property, then your third party car insurance will cover the costs of those damages. However, it does not cover the damages to your own car. For that, you need to opt for a comprehensive car insurance policy.

How Does Third-party Car Insurance Work?

The process of third-party car insurance is straightforward. If you are involved in an accident and you are at fault, then the other party can file a claim against your insurance company. The insurance company will then investigate the claim and assess the damages. If the claim is found to be genuine, then the insurance company will pay the damages to the third party. The maximum amount that can be claimed is decided by the Insurance Regulatory and Development Authority of India (IRDAI). For cars with engine capacity up to 1,000 cc, the maximum amount is Rs. 7.5 lakh, for cars with engine capacity between 1,000 cc and 1,500 cc, it is Rs. 7.5 lakh, and for cars with engine capacity above 1,500 cc, it is Rs. 7.5 lakh.

Benefits of Third-party Car Insurance

The primary benefit of third-party car insurance is that it covers the damages and losses to the third party, which can be substantial, in case of an accident. If you do not have third-party car insurance, then you will have to pay for those damages out of your pocket, which can be a huge burden. Additionally, having third-party car insurance provides you with legal protection, as it is a legal requirement to have it in India.

Parivahan Portal: A Convenient Way of Getting Third-party Car Insurance

Now that you understand the basics of third-party car insurance, the next question is how to get it. There are two ways of getting third-party car insurance. The first one is to approach an insurance agent or visit an insurance company’s office and buy the policy. The second way is to use the Parivahan portal, which is an online platform developed by the Ministry of Road Transport and Highways, Government of India, to provide various services related to vehicles. You can use this platform to apply for third-party car insurance and get it easily without any hassle.

To apply for third-party car insurance on the Parivahan portal, you need to follow these steps:

  1. Go to the Parivahan portal
  2. Click on the “Online Services” tab
  3. Select “Vehicle Related Services”
  4. Click on “Insurance Related Services”
  5. Select “New Insurance” if you do not have any insurance or “Renewal Insurance” if you want to renew your existing insurance
  6. Fill in the required details such as the vehicle registration number, engine number, and chassis number
  7. Select the type of insurance you want to purchase
  8. Make the payment through net banking, credit card, or debit card
  9. Receive the insurance policy on your registered email address

Conclusion

In conclusion, third-party car insurance is a legal requirement in India, and every car owner must have it. It provides financial protection in case of damages and losses to a third party and legal protection to the car owner. The Parivahan portal is a convenient way of getting third-party car insurance, as you can apply for it online and get it easily without any hassle. We hope this guide has helped you understand the importance of third-party car insurance better. Remember, prevention is always better than cure, so be safe on the road and always drive responsibly.