Get A Better Understanding Of Liability Only Insurance Cover In Motor Insurance

If you have a vehicle, then you know the importance of motor insurance. Especially with the widespread availability of motor insurance online, it is necessary to properly understand motor insurance coverage. Read on to know more.

What is liability-only insurance?

According to the Indian legal system, a Liability Only Policy is required by law. This policy covers any individual or third party involved in an accident that you cause. Liability-only coverage is significantly more affordable than full motor insurance coverage, which has a higher premium and more comprehensive coverage. Auto insurance that solely covers the third party and their property, as opposed to the insured and their car, is known as “liability only” coverage.

In the case of an accident involving your insured vehicle, a liability-only policy can protect you from any legal obligations you might have that result from harm or loss to a third party solely. This complies with the requirements outlined in the Motor Vehicles Act of 1988. For the owner-driver, personal accident coverage is also required. In addition to the coverage provided to him by law, the motor insurance coverage may be expanded to cover a variety of other risks, such as personal injuries to car passengers and workers’ compensation for drivers.

Features of liability-only coverage in motor insurance:

  1. Types of vehicles covered:

Private, two-wheelers and commercial vehicles can all purchase third-party liability insurance. On goods-carrying vehicles like public and private carriers, passenger-carrying cars, etc., “liability only” policies are also valid.

  1. Third-party liability insurance:

The insurance company may cover any legal costs associated with the total and permanent disability, injury, loss of life, and property damage of a third party resulting from an accident involving the insured vehicle.

  1. Coverage for personal accidents:

In the unfortunate case of an accident, a total personal disability, or the loss of the life of the driver or owner, the majority of providers offer a personal accident cover as well.

  1. Scope of the Cover:

The scope of coverage for third parties is fairly thorough. Amounts up to Rs. 7.5 lakhs are typically offered by firms to cover third-party property damage. The damage to other aspects and bodily harm does not have any limits as of now.

  1. Protection from Liability-Only Cover:

This policy provides coverage if the insured vehicle is involved in an accident that results in property damage, bodily harm, loss of life, etc., to a third party.

Liability Only Policy therefore covers:

  1. Property loss to third parties.
  2. Third-party loss of life or physical harm.
  3. Personal Accident Coverage for Owner/Driver in case of permanent total disability of the insured vehicle owner/driver accidental loss of life of the insured vehicle owner/driver

Personal Accident Cover for the Driver/Owner Coverage:

  1. Total Permanent Disability.
  2. Unintentional Loss of Life.

Before buying any particular insurance, it is advised to use a motor insurance calculator. This can help you find the ideal plan for you by taking various factors like income, usage and goals into consideration.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.