Friday, August 03, 2018
By CarKhabri Team
Understanding The Concept Of Third Party Car Insurance
Like life insurance, the main objective of car insurance is to provide financial assistance to the car owners in case of any damage to their car, whether in an accident or theft. It would be interesting to know that even in motor vehicle act, that governs the transportation of vehicles across the country it is stated that nobody can drive a vehicle on Indian roads until unless the vehicle is not insured. The main reason is that sometimes due to the mistake of a fellow driver your car gets damaged and you have to pay for its repair.
Therefore, going through the concern of motorists getting the vehicle insured has been made mandatory for the vehicle owners. As the general practice, there are two types of insurances determined for the vehicles (1) comprehensive insurance and (2) third party insurance. Comprehensive insurance mainly covers the damage that is caused to both the actual car owner and the third party. On the other side third party insurance covers the damage that is caused to the third party because of your mistake.
Let us, for instance, assume that you are driving well on the highway at high speed and suddenly you attention gets diverted and you hit the car moving ahead of you. Undoubtedly, as the incident took place because of your mistake, the owner of another car will get angry on you and long debate about damage is quite obvious. It is the time when third-party car insurance could help you in compensating the other person with financial help that he had to face because of your mistake.
An interesting feature about third party insurance is that its premium is quite lesser than the comprehensive insurance and covers the payment of damage only to the third party and not to the party responsible for an accident. Unfortunately, despite of the flexible scheme, there are lots of motorists who due to long paperwork and other legal complications hesitate in getting the matter resolved legally and compromise with the victim and compensate him from their pocket.
However, now there is a change in their mentality and strict action taken by the government on the people driving a vehicle without any type of insurance, vehicle holders are getting aware towards the benefits of insurance and driving insured vehicle.