Third-party liability is the most fundamental kind of auto insurance available in Pakistan and around the world. It makes it possible for you to drive on public highways with a piece of mind. This policy is meant to protect other drivers in the event that you are in a car accident. If it’s found that you are at blame, you won’t be responsible for paying to fix someone else’s car or property. We will walk you through a comprehensive explanation of third-party insurance.
What is Third-Party Automobile Insurance?
It is the minimum legal requirement and covers you for damage to someone else’s vehicle or property or injury to someone else in an accident. It also includes damages caused by your passenger. However, third-party car insurance doesn’t cover repairs to your own vehicle.
What is Covered in Third-Party Car Insurance?
- Death or physical harm to a third party, with the exception of an employee of the insured
- Damage to a third party’s property, excluding property that the third party’s insurer holds in trust or custody
- Any individual operating an insured vehicle is covered by indemnity as long as he isn’t eligible for security under any other insurance.
- Protection for the insured even when operating a vehicle that is not his own nor one that he has acquired under a hire purchase agreement
- In accordance with the conditions of the policy and subject to its limitations, the company will compensate the personal representatives of the deceased in the event of a third party’s death.
Importance of Third-party Auto Insurance
Safety Protection for Accident Victims: Unfortunately, traffic accidents can leave victims with substantial financial losses as well as high medical costs. By guaranteeing that accident victims receive compensation for their damage and injuries, third-party auto insurance can aid in their recovery and lessen some of the financial strain brought on by the collision if you accidentally hit someone else.
Legal Compliance: In Asia, it is legally mandated that all vehicles used on public highways carry third-party insurance. Accordingly, car owners need insurance to drive their cars legally and to protect their bank in the event that an insurer hits a car. Respecting the rights of accident victims and maintaining road safety depends on compliance with this provision.
Pros and Cons of Buying Third-Party Car Insurance
Third-party car insurance offers many benefits but some drawbacks as well. Here are some of its pros and cons:
Pros
- Lower Premiums: Compared to comprehensive plans, it offers far lower premiums because it only covers third-party liabilities—not your car.
- Peace of Mind: In the event that you cause an accident and hurt someone or damage their property, it offers financial protection against legal liability.
- Easy Process: Compared to comprehensive insurance, purchasing and renewing third-party policies is frequently simpler and faster. Usually, less paperwork and fewer inspections are needed.
- Appropriate for Older Vehicles: Third-party coverage may be the most cost-effective option for older automobiles with lower market values since comprehensive coverage depreciates with age.
Cons
- Absence of Auto Insurance: This is the biggest prohibition. Any damage your car experiences from an accident, theft, fire, or other dangers covered by comprehensive coverage will not be reimbursed by third-party insurance.
- Protection from Limited Liability: Some third-party plans have coverage limitations for limited liability, which implies that you can be liable for exceeding such limits in the event of a major accident.
- Absence of Personal Injury Protection: Medical expenses incurred as a result of an accident are not covered by a third-party policy.
- Not Insured for Your Vehicle: The largest restriction is this. Third-party insurance will not pay for any damage your car sustains from an accident, theft, fire, or other covered risks under comprehensive coverage.
What Do I Need to Get a Third-Party Auto Insurance?
Generally speaking, you’ll need to provide some background information about:
- Your automobile
- How much do you drive each year?
- Where do you park it overnight?
- Your contact information, such as residence, age, and job status
- Any assertions or verdicts
- What is the duration of your no-claims discount?
- The kind of cover you’re searching for
Finals Talks
Third-party automobile insurance is a crucial requirement in Pakistan and other countries, providing legal compliance and financial protection to accident victims. It covers liabilities for damages and injuries, and it has lower premiums. For further details, don’t hesitate to get in touch with Cometinsure if you need any insurance related information or want to apply 1st or 3rd party insurance.
