Third-party liability (TPL) car insurance is a type of auto insurance that protects you against financial liabilities arising from damages and injuries caused to a third party or their property.
Essentially, third-party liability insurance means that if your car is involved in an accident causing injury or property damage to another person, the insurer will cover the costs.
This type of insurance is mandatory and ensures that victims are compensated without direct financial impact on the policyholder.
Who are The Parties in a 3rd Party Liability Car Insurance?
- First Party: The person or business that purchases the insurance (the insured).
- Second Party: The company providing the insurance (the insurer).
- Third Party: An outside person or business that claims damages caused by the first party.
How Third-Party Liability Car Insurance Works
If the policyholder of a
third-party car insurance is involved in an accident, the insurer provides financial assistance to cover the cost of repairs or injuries to third-party property.
Third-Party Claim Process for Property Damage
Claim Filing
File a claim after an accident through the insurance provider via their helplines. The third party must also inform the concerned traffic authorities and file an FIR.
Insurance Details (Documentation)
The third party should obtain the vehicle's insurance details and file an FIR at the local police station.
Compensation
The insurance company rules on compensation based on the documentation provided.
Compensation Limit
Maximum compensation amount is ₹7,50,000.
Third-Party Claim Process for Injury/Disability/Death
Claim Filing
Injured third party or dependents can file a claim through the Motor Accident Claims Tribunal.
Documentation
Submit required documents like the FIR and insurance papers.
Compensation
Tribunal rules on compensation based on documentation submitted.
Out-of-Court Settlements
Parties can choose out-of-court settlement too as permitted by law.
If the insured meets with an accident while driving their car, they must inform the insurance company immediately after the accident to ensure a smooth and speedy claim process. The
third-party claim process ensures that victims are compensated without the insured driver facing significant out-of-pocket expenses.
What Does a Basic Third-Party Liability Car Insurance Cover?
- Death or Bodily Injury: Compensation for death or injury to a third party.
- Damage to Third-Party Vehicle: Covers repair or replacement costs for a third-party vehicle damaged by the insured vehicle.
- Damage to Third-Party Property: Compensation for property damage up to ₹7.5 lakhs.
Benefits of Third-Party Liability Car Insurance
- Legal Compliance: TPL car insurance is mandatory in India. It ensures you meet legal requirements.
- Protection from Liabilities: Covers expenses for third-party injuries and property damage.
- Personal Injury Cover: Third-party liability insurance by Reliance General Insurance offers personal accident cover.
- Third-Party Property Damage Cover: Compensates for damages to third-party property, with coverage limits up to ₹7.5 lakhs.
- Third-Party Injury Cover: Covers medical expenses and compensation for third-party injuries or death.
- Affordable and Accessible Policies: The third-party liability insurance costs are generally lower than comprehensive policies. You can easily buy third-party liability insurance online.
Why Should You Obtain Liability Third-Party Insurance from Reliance General Insurance?
Choosing Reliance General Insurance for your third-party liability
car insurance ensures comprehensive protection at an affordable cost. We offer competitive third-party liability insurance costs, to make it a budget-friendly choice for all drivers.
Our policies cover third-party injuries, property damage and legal fees to ensure you meet legal requirements and protect yourself from liabilities. The process to buy third-party liability insurance online from us is also straightforward and hassle-free.
Trust Reliance General Insurance for reliable coverage and peace of mind on the road.
Conclusion
Third-party liability car insurance is essential for every driver as it provides crucial financial protection against damages and injuries caused to others. It ensures that victims are compensated without significant out-of-pocket expenses for the policyholder.
The mandatory nature of this insurance helps you comply with legal requirements while offering peace of mind.
Choosing Reliance General Insurance for your third-party liability coverage guarantees comprehensive protection at an affordable cost. Our straightforward process to buy third-party liability insurance online, along with extensive coverage and reliable customer support, makes us the ideal choice for safeguarding your financial and legal responsibilities on the road.
Frequently Asked Questions (FAQs)
How is the premium for third-party liability car insurance calculated?
The premium for third-party car insurance is decided annually by the IRDAI based on the vehicle's engine capacity. The cost is usually lower than comprehensive insurance premiums.
Can third-party liability coverage be transferred if I sell my car?
Although third-party cover is automatically transferred for the first 14 days after selling the car, you must formally transfer the cover to the vehicle from the 15th day to ensure continued coverage.
Does Third-Party Liability Car Insurance cover passengers in my car?
No, third-party liability insurance does not cover passengers in the insured vehicle. Coverage for passengers may be available under a comprehensive car insurance policy.
How long does it take to settle a third-party liability claim?
The time to settle a claim can vary depending on the complexity of the case, the availability of required documents and the Motor Accident Claims Tribunal's schedule. You can expect it to be between a few weeks to a few months.
