Don’t have a Third-party Car Insurance?

The risk of meeting with an accident causing damage or injury to a third party vehicle or self is unavoidable when you are driving your car. Despite following traffic rules and being extra careful, you might at times end up meeting with an accident on the road. The series of events that follow after an accident or being pulled up by a traffic cop is extensive and can get serious if you are unable to produce the required documents when asked to. One such important document is the insurance cover. A third party car insurance cover is thus a must every time you are on the road driving. It has been made mandatory by the Indian Motor Vehicles Act, 1988 and failing to produce the same at any instant can lead to serious legal procedures.

Coverage of Third Party Car Insurance

A third party car insurance cover is an insurance policy that every two and four-wheeler owner needs to buy to cover the liabilities that arise in case of an accident towards the third party who has been injured or whose vehicle has been damaged by the policyholder. It does not directly benefit the policyholder in case of damage to their own car or physical injury but safeguards the policyholder from the expenses that creep in for paying up for the losses to the third party.

A third party car insurance cover is the basic car insurance policy that you must-have for your car. However, there are many other car owners who opt for a comprehensive insurance cover that includes the features of a third party car insurance plan. This plan additionally provides coverage to the policyholder in case of damage to the vehicle or bodily injury from an accident.

You would have noticed that cops do a random sanity check to ensure the cars plying on the Indian roads have valid insurance. They would often indicate you to pull up and produce your drivers’ license along with the insurance papers.

Failure to produce documents can lead to serious problems. After the Government has passed the Road Transport and Safety Bill, 2014, the number of fines charged for driving without a third party car insurance cover has increased by a considerable amount. With the latest amendment to the Motor Vehicles Act, 1988 the fines and penalties have been doubled. Under the latest proposed bill by the Lok Sabha, a fine of Rs.2, 000 is imposed against the existing Rs.1, 000 for driving without valid insurance. The amount may vary and go high depending on the vehicle’s weight and size. Additionally, your license can be seized and could even lead to imprisonment.

Apart from the legal complications, the car owner might also lose out on a significant amount of money in case of an accident while driving without a valid third party car insurance cover. The car owner loses money by paying up for the damages caused to the third party vehicle and damages to self. Besides, he also loses out on the No claim bonus that one might have accumulated on the current policy in case it has not being renewed.

Buying a third party car insurance cover is thus a wise decision that you would make. But also make sure you renew it on time to avoid any severe consequences. The Government of India has made rules stricter to ensure safety on the roads. Make sure you do your bit to stay safe.

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