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What is Third Party Car Insurance?
The third-party insurance or third-party liability coverage, it is referred to as a 'third-party' cover since the receiver of the policy is someone other than the two parties involved in the agreement (the car owner and the insurance company). The policy does not provide any kind of benefit to the policyholder. However, the third policy covers the policyholder legal liability for death/disability of third-party loss or damage (bodily) or to the third-party property.
It is important to stick to third party insurance coverage if the vehicle is older than five years.
Benefits of Third Party Car Insurance
Compliance to Legal Obligation
It offers coverage against the legal liability to a third party that may arise due to policyholder’s involvement in the incident. The coverage offers compensation for personal injury, loss of life, and property damage to the third-party. Third-party insurance coverage is an obligatory requirement by law. So, purchasing third-party insurance allows the policyholder to comply with the legal obligation.
Cost-effective
The biggest benefit of having a third party car insurance is that it’s affordable to buy. Since it offers coverage to only the third-party liabilities/damages, the premiums are much lower as compared to a comprehensive car insurance policy. If the market value of your car is low, it’s best to buy third party insurance which is cost-effective and can be managed easily.
Easy and Quick
The third-party insurance does not cover your vehicle, it does not require any survey to purchase/renew or buy a car insurance policy. It can be purchased online without any documents required. It is a fairly quick and simple process. You can get your policy renewed anywhere and anytime as per your convenience and at the comfort of your home.
Third Party Car Insurance FAQs
Self-Damage
Damages caused to the vehicles by the policyholder like man-made calamity, fire damages and theft etc.
Unauthorized Usage of car
If the car of the policyholder is being used for unauthorized/illegal activities the third party coverage shall not be applicable in case of any incident.
Expired Driving License
If the driver of the policyholder car has an invalid driver license, the third party car insurance would not cover the damages and liabilities
Coverage of Third Party Liabilities
The third-party insurance helps you to pay the damages caused to the third party without exhausting all your savings.
Peace of Mind
With the third party insurance, you can drive stress-free with the peace of mind as the policy ensures monetary protection in case of an accident.
Easy to Purchase
Third-Party insurance can be purchased online, in a swift and hassle-free process.
The third-party insurance protects you financially against the third party claims arising in case of death or bodily injury to the third party or damages or due to the damages caused to the property of the third person. Purchasing third party insurance is a legally mandatory requirement for every car in Pakistan according to the law.
While the comprehensive car insurance policy is extensive, it protects your vehicle against natural and man-made calamities. Any damage to your car arising out of vandalism, theft, storm, strike, riot or terrorist attack will be covered in this plan. While the third party insurance covers only third party liabilities. A comprehensive plan covers your car bumper-to-bumper and provides complete coverage against any misfortunate event.
No, the third-party liability insurance is a mandatory coverage which is required by all the cars, being driven on the roads.
The duration of the policy is one year and can be renewed after every year before the policy expires.
Yes! You can change your policy at the time of renewal. You can compare the plans and buy the most suitable one for your car.
Yes! Third-party insurance is more affordable as it covers only the liabilities and damages to the third party. While the comprehensive car insurance also covers the damages to your vehicle, providing complete coverage.
Yes! The third-party insurance will cover your car when someone else is driving, provided that the driver does not have an expired driving license or is intoxicated at the time of the incident, in that case, the claim will be rejected.
You need to make a police report and at the same time call the insurance provider immediately without making any change to the damaged vehicle. The insurance surveyor will assess the damage and forward your claim request for the third party payout.