Third party liability car insurance is the most vanilla form of car insurance policy that you can buy. In fact, as per the rules and regulations, it is the bare minimum policy that you must have to drive the car. The Motor Vehicles Act of 1988 mandates all vehicles to have at least the third party liability policy so that they can drive their vehicles legally on the road.

Thus, this policy type at least gives you the clearance of legal driving. As the name suggests, it covers for damages to third parties during an accident. If a policy holder meets with an accident, he/she is considered as the first party, the insurer as the second party and any other person or property involved is the third party.

Any damages or injuries or death of third party individual or property is taken care of by the policy. It must be noted that since the coverage provided by a third party cover is very limited in nature, its premium prices are also low. In fact, the IRDA recommends the price of the policy on a regular basis. Though the policy is just enough for you to drive, it doesn’t offer a lot of benefits and convenience.

Personal Accident Coverage : A third-party car insurance policy covers an owner-driver cover

Owner-Driver Personal Accident Cover: In case of a permanent total disability or an accidental death, the policyholder is covered with a sum insured of up to Rs.15 lakh on an additional premium.