In India, it is compulsory to purchase third-party insurance irrespective of whether you buy a two-wheeler or car. Comprehensive car insurance or bike insurance includes the third-party insurance cover but if you don’t want to pay a higher premium that is associated with them, you can just get a third-party two-wheeler or four-wheeler insurance at a much lower cost.

How does it work?

Third-party insurance does not provide coverage for the money that you spend to repair your bike or car after an accident but it provides financial assistance to you so that you can pay for the expenses that are required to repair the other person’s vehicle that was damaged in the accident. It also includes the coverage for medical costs that a third party requires after meeting with an accident with your vehicle.

This means that you don’t have to pay from your pocket if the other person files a third-party claim against you. However, to be eligible for this cover, you will have to inform your insurer about the accident soon after the accident. When a person files a third-party claim against you, a case is registered in the Tribunals Court and you have the opportunity to prove that you weren’t at fault if you want to avoid paying for that person’s medical or vehicle expenses.

However, if your vehicle gets damaged in the process or if you want to claim for the medical expenses that you paid for the treatment of an injury, you can raise a request for third-party insurance against the other individual. This would enable you to avoid using your vehicle insurance for getting the expenses covered but you will need to provide these details to the insurer to improve your chances of settling the claim in your favor:

• Exact details about the date, time, and location when the accident happened

• The details of your vehicle and the details of the other person and his vehicle

• If you, your driver, or passenger sustained any injuries due to the accident, you need to convey it to the insurer

• If someone watched the accident and is ready to be a witness in your favor then you can provide their details as well

• The information regarding the weather, visibility when you were driving, the reason for the accident, etc. should also be mentioned in your claim form

• If you click photographs of your and the other person’s vehicle after an accident, it might prove to be useful in the court

The Indian government has made third-party insurance mandatory for all vehicle owners because of these reasons:

Protects everyone

The intent of making third-party insurance mandatory for everyone is that everyone who is driving on the road should have basic protection for their vehicle and their own life. Also, once you buy a third-party liability cover, you don’t have to worry about the financial burden that you may have to bear after an accident.

Affordable premium

Getting a third-party liability cover is easy as it is offered at a nominal premium. Moreover, if you buy a comprehensive bike insurance or car insurance policy, third-party insurance will be included in it.

Negates the need of using your insurance

If you are confident that the accident happened due to the fault of the other individual, you can register a third-party claim to get your expenses covered. This would help you to save your vehicle insurance for the future. However, it might need much time to avail this coverage as it takes a long time to settle a third-party claim. Therefore, purchasing a vehicle insurance policy with extensive coverage could prove to be a better idea.

To search for the best third party car insurance and bike insurance policies online, you can go to the website of Bajaj Finserv. Here you will find both third-party and comprehensive vehicle insurances of various insurance firms. You can read their benefits and features and apply for an insurance policy that meets your requirements.