All you need to Know about Third Party Commercial Auto Insurance

It is a statutory requirement for all the vehicle owners in India to have a third-party vehicle liability cover as per the Motor Vehicles Act. This was created keeping in view the safety of the drivers, passengers, and pediatricians while maintaining the decorum on roads. It is one of the most basic forms of motor insurance policies that one needs to buy in India.

A beneficiary is actually a third-party person who has been injured or a third-party property that has been damaged by the insured. A third-party that is involved in an accident or has suffered bodily injuries or damage to property from a vehicle, he/she can file a third-party claim for compensation as per the law.

Who can Buy Third-Party Auto Insurance for Commercial Vehicles?

Anyone who holds a valid driving license can buy third party cover for their bus, trucks, commercial trailer, or any other heavy duty vehicle being used for commercial purposes. The vehicle has to be registered with the RTA i.e. Regional Transport Authority of that area. Various commercial vehicle insurance companies in India provide third party liability insurance cover.

Why buy Third Party Insurance for Passenger or Goods Carrying Vehicle?

Third party insurance offers protection when there is a third-party legal liability arising due to the insured’s fault.

Any loss or damage caused to another person or property caused by the policy holder is covered under third party commercial vehicle insurance.

It also covers any legal troubles arising in the case of third-party accidental death.

How Does Third-Party Commercial Vehicle Insurance Work?

Here’s how it works under the following circumstances-

• It covers damage caused to a third-party property by the insured vehicle
• It covers death or accidental injury caused to a third party
• If the insured is held liable by a third-party for the bodily injuries, death or property damage, then the car insurance provider will compensate on behalf of the policyholder.

Here’s a quick rundown of the some of the terms that are used for the parties that are involved in a motor accident-

• The policy holder or the insured person is addressed as the first-party
• The insurance company is addressed as the second-party
• The person who files a claim against the loss or damages caused by the first party is called as the third-party

How is a Third-Party Insurance Beneficial for Commercial Vehicles?

Elucidated below are some of the benefits of third-party insurance for vehicles that are being used for commercial purposes:

1. Cost Effective- Third-party liability insurance is already included in a comprehensive auto insurance policy, and in a standalone policy it proves to be quite in comparison to its intended use.
2. Peace of Mind- Draining off your savings to an affected third-party can be financially and emotionally stressful. Whereas, a dedicated third party vehicle policy can save you from the financial and emotional stress.
3. Hassle-free Online Renewal Process- It is quite convenient and time saving to renew or buy third party commercial auto insurance online. It is simple and hassle-free as you can do with your convenience.
4. Round-the-clock assistance - One major benefit of applying for third party insurance online is that it can be purchased anytime, anywhere from the online portal, unlike the traditional offline methods.

What are in the Inclusions of a Third Party Commercial Vehicle Insurance Policy?

You can file a claim for any loss or damage arising under the following circumstances:

• Accidental Death and Injury – There is no limit on coverage in case of death or bodily injuries. In the event of accidental death, the insurer recompenses the amount decided by the Motor Tribunal. It is decided on the basis of the impact of the damage caused to the victim.In the event of accidental injuries, compensation is provided for both minor as well as major injuries, including fractures. It also covers partial as well as permanent disabilities resulting after an accident.
  Property Damage-Third party liability insurance also compensates for the accidental damages caused to third-party property. The limit of compensation for third party property damages as per the IRDA norms is Rs. 7.5 lakh. However, the insured can opt for lesser compensation and the cost of the premium will also be reduced.
  Personal Accident (PA) Cover for the Driver/Owner- If the owner or driver suffers from bodily injuries or the accident results in death, 3rd party insurance will cover the loss. And the limit is up to Rs. 15 lakh. It is further extendible to paid drivers, cleaners & conductors on payment of extra premium.

You can also extend your geographical coverage area as well as get personal accident cover for your driver, cleaner or maintenance staff involved in the upkeep of your commercial vehicles. There are add-ons available specifically for CNG/LPG vehicles.

Third Party Liability Insurance Premium for the Financial Year 2019-2020 w.e.f. From June 16, 2019, as per the IRDAI-

How to Buy Third-party Insurance for a Commercial Vehicle Online?

Zero documentation is required to buy third party insurance online. You can get your insurance quote within seconds by entering your registration number in the form above. This makes things really simple.

However, you will have to provide details like:

• Vehicle Registration number
• Engine number
• Chassis number
• Previous insurance policy number (if you have any)
• Vehicle manufacturing date (mm/yy)
• Date and city of purchase

Easy Renewal of Third-Party Insurance for a Commercial Vehicle Online

It is quite easy to renew your third party insurance for commercial vehicles online. All you need to provide is your current policy number, details about the vehicle to be insured, and some personal details.

Prevent unnecessary losses to your business.

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