If you have bought a new car or you have been owning a car for a very long time, you would know that one of the most important document to have with you is the insurance. While you were getting the new car, the car retail company would have walked you through the process of buying a policy.
Third-party insurance would be the most common type of insurance policy that most car owners would opt for. There are many reasons behind getting Third-party insurance, ranging from being mandated as per the law to clearing legal liabilities. Let’s take a look at the reasons why you should buy third-party insurance.
1. Third-party insurance is mandated by the law- Third party car insurance is a mandatory document that you need to carry while you are driving your car in India. This is mandated as per the Motor Vehicles Act. It is illegal to drive in India if you don’t have the Third Party Insurance.
2. To avoid fines slapped by police- If you don’t have Third-Party insurance and if you are caught driving without one, then you will be liable to pay a fine of Rs.2000/-. If you are caught a second time then the fine will be Rs.4000/-. Repeated offences can land you in jail as well.
3. Financial assistance when you cause injury or death to a third-party- If you get into an accident with another person and you cause injury or even death to the third-party then a third-party insurance policy will pay for those liabilities on your behalf. In case of death then the compensation will be paid to the nearest kin. You will be protected and their dependents will also be covered.
4. Financial assistance when you damage a third-party’s property – While driving your car, if you get into an accident and damage another person’s vehicle or property then the third-party insurance policy will pay for those liabilities on your behalf.
5. Cheapest policy available- Third-party insurance policy is the cheapest policy available. The premium to be paid for this policy is the lowest when compared to other types of insurance policies available in the market.
6. Covers legal liabilities in case of an accident- If you are involved in an accident that has caused injuries or other damages to a third-party then whatever legal obligations involved will be taken care of by the insurance company. This way you will not have to depend on another person for the legal proceedings.
7. A safety net for unforeseen circumstances – Third-party insurance is a good safety net that you can afford in case if you are met with an accident. Without this policy, you will have to pay for the financial liabilities from your own pocket. This will create a huge dent in your savings.
8. Ease of purchase – You can easily purchase third-party insurance. There are fewer paperwork and documents to be provided for purchasing this policy. If you are purchasing the policy online, it will barely take a few minutes.
9. Available for purchase round the clock – You can easily buy third-party insurance whenever you want. It is available 24×7 all year round, unlike other policies which some insurance companies will only let you buy through offline methods.
10. Gives peace of mind – Third-party insurance policy will give you peace of mind when it comes to dealing with an accident. If you are met with an accident, you can completely focus on your mental health and you need to have to worry about the legal and financial liabilities that you owe to a third-party.