According to the Motor Vehicle Act, all vehicle owners must have third-party car insurance. This type of insurance protects the third party. The policy does not cover the insurer in any way.
What is the procedure for third-party insurance?
If a policyholder has an accident, the insurer will provide money to cover the cost of fixing the property of the third party. Before submitting a claim in an accident, the insured must notify the insurance provider immediately.
The insurer appoints a surveyor to evaluate the damages and confirm the estimated cost of repairs. The insurer settles the claim after the verification is complete.
The value of third-party insurance
The law makes third-party insurance mandatory. Despite being a basic option for coverage, it provides policyholders with the security of knowing that they have financial protection against the harm they might cause to others in an accident. You can find this insurance on the Bajaj Allianz car insurance website. Also, the policyholder’s financial assets are protected from unintentional risks.
Making a list of the terms used will help you understand how a third-party insurance policy operates. The following are some of the words frequently used to refer to third-party insurance:
First party
The policyholder or individual who bought the insurance.
Second party
The insurer or insurance provider.
Third-party
The person who makes a claim against the first party for damages they are alleged to have caused.
The policyholder is responsible for covering any damages or injuries sustained in the event of an accident with a third party. When an accident occurs, the policyholder must immediately notify Bajaj Allianz car insurance and inform them of the circumstances.
Additionally, it is crucial to gather information about the accident and give the insurer the following specifics:
- An accident’s description, along with the time and date
- Information on insurance policies and those present at the scene of the accident
- Describe any injuries the driver, passengers, or damaged property or vehicles have suffered
- Witness information
- The weather and visibility at the time of the accident
- Photographs of the accident scene’s evidence collection.
Give the insurance company’s information if the police ask and, if applicable, make a note of the First Information Report (FIR) number. Additionally, suppose the policyholder was not at fault for the accident. In that case, the claimant may file a claim for the cost of renting a car, repair expenses, and injury compensation under the terms outlined in the car insurance coverage policy document.
The characteristics of third-party insurance
All policyholders are provided with a fundamental level of protection by third-party insurance. It is also known as a liability-only or act-only policy.
It offers protection against potential legal responsibility to a third party brought on by the policyholder’s involvement in the collision. It compensates for third-party property damage, passing away, and personal injury.
The insured vehicle is not protected by third-party insurance.
The fact that this type of policy has a reasonable premium is a key characteristic. Use a car insurance calculator to check your premium amount for the insurance.
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Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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