How does third-party car insurance help?

How does third-party car insurance help?

How does third-party car insurance help? I have motor insurance, but it’s only third-party coverage. Will it cover damages in case of accidents or pile-ups on highways due to smog?

—Name withheld on request

Third-party (TP) insurance primarily addresses damages to bodily injury, fatal cases for the occupants travelling in the vehicle, and loss to any vehicle that you might have an accident with, as well as bodily injury or death of passengers of the said vehicle, any property that might be damaged due to your car, or injury or death of any pedestrian. This does not directly cover damages to your vehicle (also called own damage).

In a scenario like a vehicle pile-up, where you impact the vehicle in front, your TP policy would cover damages to that vehicle subject to fault evidence established by the insured vehicle through court proceedings. Typically, if the impacted vehicle has an own damage (OD) coverage, their insurance company will cover their damages, following the knock-for-knock policy which is a mutual agreement among insurers to handle their policyholders’ costs in an accident.

Your vehicle’s damages would fall under OD coverage, which provides financial protection against accidents, fire, theft, natural disasters, and negligence. But, since you do not have an OD cover and only a TP cover, the cost of your vehicle’s damage may be covered by the impacting vehicle’s third-party policy if the fault is evident by the impacting vehicle as per police investigation. However, the cost of damages will be decided by the court of law.

In the unfortunate event of an accident, promptly contact your insurer and adhere to their documentation protocols. It is highly recommended to opt for a comprehensive insurance policy with add-ons for holistic financial protection. Getting a zero-dep policy is highly recommended too, as it provides the widest coverage.

What are the insurance options for cyber-crimes?

—Name withheld on request

Cyber insurance can help financially safeguard you against various cyber scams and at the same time protect your information from compromise. Cyber insurance will help cover fund loss due to phishing scams, reimburse criminal complaint filing costs, and help address cyber extortion by assisting in resolutions. It safeguards against online transaction losses, offers financial protection, and provides psychological support during crises. In cases of malware disruption, it covers the restoration cost for computer systems, software, and data.

Additionally, legal fees for defending against third-party suits related to data loss are also covered. With a cyber insurance product, you have the flexibility to tailor your cybersecurity plans product as per your requirements. Reach out to the insurer of your choice to initiate and finalize the purchase process.

Policyholders can now browse, surf, and transact online confidently, free from undue stress, knowing they have the necessary financial protection to address potential internet-related threats.

Tapan Singhel is the MD & CEO, Bajaj Allianz General Insurance.

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Updated: 03 Dec 2023, 10:28 PM IST

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