In order to assist victims of road accidents, third party insurance policy has been made compulsory for car and bike owners
TG LIFE
A number of experts have said that people have to mandatorily carry their third party insurance policy while driving a two-wheeler or a four-wheeler. This is after The Insurance Regulatory Development Authority of India (IRDA) has made it necessary to take a 3 year third party insurance cover on the purchase of cars and 5 year insurance cover on the purchase of two-wheelers.
A source from a private insurance company, on the condition of anonymity said, “You havae to carry third party insurance policy while driving. Typically, it is just one page of A4 size, but, it has to be carried. In the event of some violation on road, the traffic police will ask for insurance papers along with the RC book.”
The source continued, “The new rules provide three options to people buying automobiles. One, don’t buy insurance for damage to own vehicle, but buy a 5 year/3year third party insurance cover for a two-wheeler/four-wheeler. Two, buy one year insurance cover for damages to own vehicles and buy a 5 year/3year third party insurance cover for a two-wheeler/four-wheeler. Third, buy a 5 year insurance cover for both third-party and damages to own two-wheeler and 3 year cover for both third party and damages to own four-wheeler.”
The logic behind giving an option to “not buy insurance for damages to own vehicles” is that in such cases the owner of vehicle himself will be responsible to face damages in the event of an accident. But, even when he doesn’t buy insurance for damages to own vehicle, he has to buy third party insurance cover. And, once you buy third-party insurance, you are required to carry it while driving.
Another source from insurance sector, who also preferred to be anonymous, said, “Often insurance companies provide a cover note to people buying automobiles. This is valid only for 60 days, as later the insurer is expected to give you proper insurance policy document. But, people, without knowing it, keep on carrying cover note well after the first 60 days, which is not allowed. They have to carry third party insurance policy after 60 days and not cover note.”
A number of insurance companies have stopped issuing a cover note because they directly provide a third party insurance policy itself on the purchase of automobiles.
