Third party car insurance is a very popular form of general insurance. It is legally compulsory to have a third party cover for all the vehicles that ply on the Indian roads as per the Motor Vehicle Act. 1988. As a result, we see many third party policies being sold every day. While a third party car insurance plan is beneficial, there are a few important things that you must remember before you buy your plan. Let us find out what they exactly are.
Selecting the best third party car insurance company
A car insurance plan is important to cover your vehicle. But did you know that the insurance provider you choose is equally, or perhaps a bit more, significant as well? Yes, that is correct! You need a good insurer to buy the car insurance policy from. There are some very logical reasons behind this. Let’s explore:
- Claim settlement: A good insurance company is known for its high claim settlement ratio. An insurer who has a healthy record in this department will honour your claim too. So always try to buy your third party car insurance plan from an insurer with a high claim settlement ratio. The purpose of buying car insurance is to get a claim later on. A company with a poor ratio may reject your claim and defeat your entire purpose of buying the insurance cover.
- Customer support: Your interaction with your insurance provider doesn’t end when you buy the car insurance cover; rather it just begins then. As a result, you need to have access to a good and efficient customer support team who will always be there for you. You can call in with your queries and get your issues resolved. So always choose your insurance provider after assessing their customer support facilities.
- Best features: The best plans from the best insurer will obviously have some very good features in them. So choose your insurance provider carefully and buy their best products at the best rates.
You can therefore see why it is important for you to not just select the car insurance plan carefully, but also the car insurance provider.
Coverage and payments – why they matter Car insurance has many components to it. Among them, the most crucial ones are the cover and the payment. You get car insurance for the cover and you pay the premiums for the protection the cover provides. It is therefore crucial for you to choose the cover properly. When buying a third party cover, keep the following in mind:
- Scope of cover: A third party car insurance plan only covers the damages to a third party and not to your own vehicle. It also covers the legal costs and has provisions for personal accident compensations. Study your third party car policy carefully. You should get the highest possible cover to ensure at the time of a claim, you don’t have to spend from your own pocket to pay a third party.
- Sub limits: There are sub-limits with your third party cover. Your insurance company may only agree to pay a certain percentage of the sum assured to a third party and another percentage for your legal costs. Read the policy wordings carefully so that you are aware of the clauses and know how much you can expect at the time of a claim.
The payment is an equally important factor in any car insurance plan. The payment or the premium that you pay to keep the cover active is fixed by the IRDA. It is vital for you to make the premium payments on time to ensure you have a continued cover. You can choose to pay the premium in one installment (annually), twice a year (semi-annually) or quarterly. Choose the option that is economically viable for you. It is important to pay the premium on time or else your car insurance plan will lapse.
In a nutshell
Third party car insurance is affordable and fulfils your legal obligation only. You get to buy the plans at reasonable rates and then drive your vehicles in a responsible and peaceful manner. So if you have still kept your vehicle uninsured, buy a third party car insurance cover right away. You can make the purchase instantly online and that too with a lot of convenience.