Third Party auto Insurance: know the limits – What is third party auto insurance? It is a financial shield that helps car owners to bear the legal liabilities arising out of injury, death or property damage to a third party, inflicted by the insured. The third party involved in the accident is usually compensated by the cover.
The expenses of a third party involved in an accident are usually settled by the Third-Party auto insurance without his/her own fault. The policy holder also benefits because all the arising legal expenses are usually taken care of by the insurance company. This arrangement usually provides both parties with a win-win situation in terms of money. However, self-damage to the insured vehicle is not included in this cover.
But have you ever asked yourself how much compensation is given towards injury, death or damage to property under the third party ?
Here is a look at various third-parties compensation slabs.
Compensation for injuries Caused by Accident- third party compensation is payable up to expenses that involve medical and treatment of minor injuries that have been caused by an accident. Usually the court announces its verdict, paving way for the victim?s compensation with the legal liabilities.
Compensation for partial liability caused by the accident – the amount of compensation can be very huge in the event the accident leads to partial liability. However, thanks to third-party insurance, all the expenses are catered for. The costs of treatment will be covered by the insurer in the event the victim files liability charges against the policy holder.
Compensation for permanent disability caused by the accident ? in case the victim suffers permanent damage to some organs or disability of a body part for example vision or limb lose, then all expenses including medical and hospitalization costs incurred during the victim?s treatment are reimbursed by the third party insurance. All this happens while exempting the insured from liability.
Compensation for death caused by the accident ? in severe cases that results to death, there is always a huge monetary baggage which may prove too costly for one to bear. But the financial threat can be mitigated to a greater extent in the event that the vehicle at fault has third-party insurance. The company will pay all the liability expenses if the legal victim?s heir files a case against the car owner.
Compensation for damage to property by accident ? in case there is any damage to property to a third party, then the expenses incurred in damages repairs are settled and recompensated by the insurance company. However, the amount of compensation may vary across various insurers. The settlement amount mostly includes medical and hospitalization expenses and this also varies with the nature or state of injuries suffered.