Monday, January 07, 2019
By CarKhabri Team
Inclusions and exclusions of Third-party Car Insurance Policy
Every car insurance policy has a set of inclusions and exclusions. These are situations that the policyholder should be aware of while purchasing the policy. This helps avoid claim rejection. In this article, we will take a look at what these situations are under a Third-party liability policy.
What is Third-party car insurance?
A third party car insurance policy is one of the two types of policies available in India. This is the most basic policy that a car owner can buy. Purchasing at least this type of policy has been made compulsory under The Motor Vehicles Act, 1988. It is a compliance requirement.
A third-party car insurance policy provides the least amount of coverage. This is why a policyholder is left underinsured in spite of buying an insurance policy for the car. In this article, we will discuss the various inclusions and exclusions of a Third-party car insurance policy.
Inclusions of Third-party Car Insurance Policy
Inclusions are situations that are covered under a car insurance policy. The policyholder can make a claim to his/her insurance company in case any of the following situations occur.
● Third-party Injuries
If the policyholder accidentally injures any third-party, the cost of treating their injuries will be born by the insurance company. A third party may include drivers of other vehicles or pedestrians.
● Third-party Death
In case a third party dies in an accident with the insured car, compensation will be paid to his/her next of kin. The compensation will be calculated keeping in mind the age and income of the deceased person. The death compensation is not capped at any amount, it is unlimited. This allows a fair compensation to the dependants.
● Third-party Property Damage
If the third-party property is damaged due to the insured car, the compensation will be borne by the insurance company. The third-party property could include vehicles, house, crop fields and crops, shops, etc.
● Third-party Legal Liabilities
A number of legal liabilities could arise due to an accident. Carrying out the legal formalities can be a huge hassle without an insurance policy. However, a third-party liability policy will cover the policyholder against third-party legal liabilities as well.
● Personal Accident Cover
A personal accident cover for the owner/driver of the car is included in a third-party car insurance policy. This extends a financial over the policyholder in case of death or disability. Hospitalizations charges arising out of injuries are not covered under this policy except for death or disability.
Exclusions of Third-party Car Insurance Policy
These are situations under which the policyholder cannot raise a claim. The insurance company is not liable to pay any compensation in any of the following circumstances:
● Accidental Damage to the insured car
● Any type of damage caused to the insured car due to an accident is not covered under a third-party car insurance policy.
● Compensation for the theft of the insured car will not be borne by the insurer.
● Any damage caused to the policyholder’s car due to fire will not be covered under a third-party policy.
● Natural Calamities
● Damage to the car due to any natural calamity like earthquake, flood, landslide, rockslide, hurricane, etc. is not covered under this policy.
● Man-made Calamities
● Damage to the car due to any man-made calamity like riots, vandalism, sabotage etc. is not covered under this policy.
How to buy Car Insurance policy?
The easiest way to buy a car insurance policy is buying third party car insurance online. To buy the third-party car insurance online, all you need to do is log in to the insurer’s website and fill the required details. After making the payment, a digital policy will be sent to your registered email address within seconds. You can print the document and use it as required.