Motor Insurance: Why Third Party Cover is Not Enough?

Motor Insurance: Why Third Party Cover is Not Enough?
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Any motor insurance policy for a two-wheeler or a four-wheeler comes with a premium. But that’s not all, any policy comes with certain terms and conditions as well. A two-wheeler insurance policy has different types of plans and covers.

A comprehensive insurance policy comprises of two covers – third party insurance cover and own damage cover. It covers a vehicle against any damages caused by insured circumstances covered under the policy. Now, let’s have a look at both these types of covers:

  • Third party insurance cover

Under this type of insurance, if your vehicle causes any damage to a third party like bodily injury, death or damage to the third party, then you are legally liable to pay for the damage. However, it does not cover any injury caused to oneself or damage caused to one’s own vehicle. You need to have the third party insurance for your vehicle as a mandatory rule as per the Motor Vehicles Act.

  • Own damage insurance cover

A part of the comprehensive motor insurance policy is the own damage cover which pays you in case of damage to or the theft of your vehicle. This cover is not compulsory under the Motor Vehicles Act.

After reading about the two insurance covers, you can easily understand that only the third party cover is not enough. Go through the below reasons, and you shall come to know why:

  • You must be thinking of buying only the third party insurance cover as the premium you pay for it is just 10% of the comprehensive policy most of the times. But is it worth to put your vehicle on a stake to save the cost of premium? Absolutely not. A third party liability cover is 80-85% cheaper as compared to the comprehensive policy. This is the reason why you will find it more profitable to go for only a third party cover. However, it takes care of only third-party damages which is why it was earlier known by the name “One-time act only.”
  • Third party coverage does not comprise of cover for your legal obligation towards your paid motorist as well, i.e., if you are not self-driving your car, you need to purchase a cover for your chauffeur as well.
  • You will not be able to claim compensation for the damage caused to a third party more than once.
  • You need to stick to on to the terms and conditions set by the insurance company for third party insurance claims. It does not cover any claims that fall outside the terms and conditions.
  • While comprehensive motor policy compensates for more than just vehicular collisions, however, If you hold a third party insurance policy, it shall cover only bodily injury and accidental death.
  • In third party insurance cover, you can claim compensation for damage to the property of the third party, however, in comprehensive insurance cover, you will be able to claim compensation for damages caused due to man-made as well as natural calamities.

Also Checkout:-
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The Bottom Line

Accidents are unpredictable, and you should not allow unpredictable circumstances affect your finances. As they say, prevention is better than cure. So, prevent yourself from accidents and other unpredictable situations and do not just depend on third party insurance cover.

It will not suffice all your two-wheeler insurance and bike insurance needs. It might be the most economical insurance coverage you can get for your vehicle, but not certainly the comprehensive one. Hence, match your requirements with the terms and conditions of any policy and opt for the right one.

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