Third-Party Insurance policy, Is it worth it?

If a car is insured the financial losses caused are supposed to be covered by the insurance firm. In this article we will be talking about Third party car insurance policy and is it worth it.

There are two type of insurance policy offered by the insurance types in India-

• Third Party
• Comprehensive

Before we talk about third party insurance let's be clear of some terms-

• First Party- The person who has purchased an insurance policy.
• Second Party- The firm that provides the insurance policy.
• Third Party- Anyone who is affected by the insured car.

Well, as you must have already figured out, the third-party insurance covers against the damages occurred to a person by an insured car. The list of things covered by the third-party insurance policy is as follows-

1. Damages to third-party vehicle
2. Injury caused to third-party
3. Damages to third-party property
4. Injury to first-party

For example, Let's say driver A was speeding his car and hit a car (driver B) that was moving ahead of him. Now, driver B lost control of his car and crashed into the divider. This led to damages to both the cars and injury to both the driver.

Now, driver A has a third-party insurance. So, the insurance will cover the damages to the vehicle of driver B and the injuries to both the driver. The damage to the vehicle of driver a will not be covered by the third-party insurance policy.

Now you know what is a third-party insurance, so let's compare it with Comprehensive cover and you figure out yourself which one is the best for your personal use.

Before you make up your mind, take a look at what these policies do not cover.

Third-Party Exclusions-

• Does not cover the cost of damages to the insured vehicle
• The belongings in the vehicle in case of an accident.
• No cover if traffic rules are broken.
• Personal accident
• No cover if terms and conditions of the policy is violated

Comprehensive Exclusions –

• Aging of the vehicle
• Depreciation
• Breakdown
• Damaged tyres and tubes.
• Damage caused by someone driving without any accepted licence.
• Damage caused due to drunken driving or under influence of drugs.
• Damage caused by war.

So, this is all you need to know about third-party insurance to figure out if it works for you or not.