04-10-2023
Vivek
Third-Party Car Insurance
a quick search for motor insurance online results in a few dozen hits from all the major insurance providers in the country. While the product offerings may vary, there’s two key types that come to the fore: comprehensive insurance and third-party car insurance. A mandatory requirement, it covers the legal liability of the motorist towards damages caused to others (human/property)
Let’s understand this aspect of car insurance in India via the following scenario: You’re turning into a lane and enter it a little quicker than usual. But there’s a hold-up at the other end of the corner, and you only realize it when it is too late, thereby crashing into the rear of the car in front of you. Both cars are damaged in the process and a heated argument typically ensues. Much time gets wasted as responsibility is sought & details of the payment for the damages caused are sorted out.
The sad reality is that most motorists continue to be ignorant (sometimes, even by choice) of this vital documentary-legal compliance. For the sake of a few hundred/thousand rupees, they risk legal complications in the face of an incident. In doing so, they fail to realize that third-party insurance is meant to be a critical safety net to protect others from the implications of your actions. The scenario is changing slowly though, especially in major cities and towns, as law enforcement improves. With punitive fines being levied for offenders who drive on the streets without third-party insurance coverage.
