On 20th July 2018, The Indian Government took a positive step towards on growing traffic and the perils related to them. The government has now made it mandatory for citizens wishing to sell their car, to avail a third party liability insurance. Unless you do this, you will not be able to sell your vehicle within the confines of India. The decision taken will surely help road accident victims recover compensation from insurance firms.
Moreover, the owner of the offending vehicle would not have to bear the expenses during an accident. Sell your car before 1st September 2018 or select a policy with a wise broker. Insurance brokers compulsorily have to offer third party liability insurances as an independent product and not conjoint with any other product.
For new car owners availing the third party, liability is necessary for three years. Additionally, for new two-wheeler owners, the government has made it compulsory to purchase a third party liability insurance for a span of 5 years.
What is a third party liability insurance?
Third-Party liability insurance is a contract between you and your chosen broker. By the deal, the broker will compensate you if a legal liability arises due to any road accidents or damages that may occur to the opposite party.
What does it usually cover?
There are two types of coverages, broadly classified as:
Bodily injury liability- it covers the expenses that result from injuries to a person. The coverage also includes costs on hospital bills, lost wages and suffering due to an accident.
Property damage liability- Reimburses costs resulting from damage or loss on a property, including dents, scratches occurred to the automobile because of an accident.
How does the insurance work?
Suppose you are new to the world of driving. You start your vehicle, and in the quest of removing it from a tight space, you hit your neighbor’s car. Won’t you have to pay for the damages occurred to your neighbor’s car? With a third party liability insurance, you can make sure that you aren’t held liable to pay for the costs. Your insurance broker will have to pay for the damages instead of you. Also, saves you from paying those ultra expensive bills from your income or savings.
What are the exclusions?
There are no significant exclusions as such, but it is advised that you also procure own damage insurance with a third party liability. This will also secure your automobile’s bodily and structural damages.
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