5 Reasons Why Third-Party Car Insurance Is Mandatory In India

5 Reasons Why Third-Party Car Insurance Is Mandatory In India

FPJ Web DeskUpdated: Thursday, October 26, 2023, 05:38 PM IST
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Car insurance has become a widespread term and an important one, too. It is a type of vehicle insurance that provides us with financial protection in case our insured car suffers damage or theft. Today, we can find that severalmotor insurance companies have rapidly grown in terms of both numbers and turnover. The main reasons for this are the increasing vehicle sales and the legal mandate to have auto insurance. 

There are different categories of car insurance policy, mainly comprehensive cover, own damage cover, personal accident cover, and third-party insurance. Whenever we drive, our careless actions or unforeseen accidents aren't just harmful to us but can hurt others too. So, to cover the damages caused to third parties or their properties, it's mandatory to have third-party car insurance. Policyholders must at least have this type of car insurance. 

The other benefits of having third-party car insurance are discussed below. 

Ensure medical care for injured third parties

India has more inexpensive hospital care than other countries.However, still not everyone can afford it. Visiting a private hospital with greater amenities maybe even more expensive. These charges can increase even further, depending on the treatment and test requirements. In the general case,during a road accident, the injured party demands the guilty party to pay for the related expenses. 

However, the guilty party doesn't need to be wealthy enough to bear all those expenses. That's where the need for third-party car insurance arrives. If the guilty party has third-party car insurance, then all the accident-related expenses of the victim would be paid by the insurance company. The burden of heavy costs won't fall on any of the parties involved. This also ensures that the expense does not become a hurdle for the treatment of the injured. This is the main reason why third-party car insurance is mandatory in India. 

Ensure repair of damaged property

We must always keep in mind that we share the road with others and sometimes even with animals.These animals may unexpectedly dart in front of vehicles without any intention of causing an accident.

This forces the driver to take quick action to save the animal's life. These sudden actions can cause massive property damage. For example, a dog jumps in front of a passing vehicle, and the driver diverts the car to save it and hits another parked vehicle. This will cause property damage without anyone's actual mistake. Sometimes our careless driving or unintentional mistakes can create an accident and injure others or damage their property. In third-party car insurance, the insurance provider will cover the costs needed for the treatment of the third party and for repairing the victim’s property that has been damaged.

Provides a financial safety net against accidents and legal liabilities

Third-party car insurance extends its coverage to the policyholder’s legal liability incircumstances where the accident causesdisability or death of the third party.Thus, the financial expensesassociated with the legal procedures related to the accident are also taken care of by the third-party liability insurance cover. The direct beneficiary of this is not the insured person but the third party. 

Provide peace of mind

Peace of mind can be more valuable than other benefits. Assurance provided by third-party liability coverage to the insured person means no worries when dealing with traumatic accidents. The policyholders do not have to worry about the financial liability arising out of the damage made to the property or injuries caused to the third party by them. The insurance agency will take care of the compensation. They will deal with all of the essential expenses, allowing the insured person to relax and not worry about the financial aspects. In short, third-party insurance will reduce policyholder’s stress by covering all the bills related to an accident. 

The Motor Vehicle Act of 1988 makes it mandatory for all vehicles plying on the Indian roads to have third-party liability insurance. Essential third-party insurance fills a double need: it defends the interests of third parties as well as gives you a priceless inward feeling of harmony. With this type of car insurance, you can certainly explore the streets with your car, complying with the legal obligations. This makesthird-party car insurance a responsible choice for any driver. So,it is not only a necessity but a smart and ethical decision.

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