What is Third Party Car Insurance?
3rd Party Insurance means the first party who has purchased the insurance from the 2nd party (which is the insurance company) for bearing the expenses caused for the third party. In simple terms for example lets suppose you are travelling by your car or bike, you purchase the insurance policy for your car or bike. You are the 1st party in this case and the company or the insurer from whom you have purchased the insurance policy becomes the second party. There are various second parties ie the insurance providers like ICICI Lombard, New India Insurance etc popularly knows as “Insurers”. The third party is the person who claims the amount for the accident from you. Hence,
1st Party – You
2nd Party – The Insurance provider
3rd Party – The person who makes claims against you
The third party insurance DOES NOT cover the repairs of the damages made to you in case of any mishap or accident. It will cover only the car/bike of the third person and himself for this damages.
Third Party Car Insurance Rates
The premium of 3rd party insurance is lesser than the Comprehensive Policies as in comprehensive policies, you yourself are also covered while in 3rd party insurance you are not. For example, you wish to purchase car insurance for your new car – Maruti Swift Dzire.
- Third Party Car Insurance would range from around INR 2,900 to INR 3,000
- While Comprehensive Car Insurance plans would charge you premium from INR 5,000 to INR 7,000 with IDV (Insurance Declared Value) ranging from INR 3.30 lacs to INR 5.30 lacs
Experts recommend taking comprehensive car insurance policies is the best choice although the rates are almost double but whats the point in buying an insurance policy unless you are not fully covered. Although, there are various insurers providing you 24*7 roadside assistance, that hardly someone may think of utilizing. hence paying for this add on may be avoided.