Liability Only Insurance

Liability Only Insurance

Liability Only Insurance

What is Liability-Only Coverage and What Does it Include?

If you are a car owner, getting auto Insurance need to be your first priority. Vehicle Insurance is compulsory in India, and the Motor Vehicles Act of 1988 Stipulates that the bare minimum of coverage is liability-only.

Damages and Injuries you cause to other people and their property are covered by liability auto Insurance. The definition of Liability-Only Coverage, its inclusions and exclusions, and its significance will all be covered in further detail in this post.

What is covered by liability-only coverage, and what is covered by it?

Because it solely covers injuries and damages to third parties, Liability-Only Coverage is commonly referred to as Third-Party auto Insurance. It is the bare minimum of coverage mandated by Indian law and offers Financial Security in the event that you injure someone in an accident or damage their property. Damage to your own vehicle or injuries you experience in an accident are not covered by liability auto Insurance.

The two primary forms of protection offered by Liability-only coverage are third-party physical injury and third-party property damage. Let us examine each of these forms of coverage in more detail.

We are Always Ready to Assist Our Clients

developing Money Making processes and procedures

  1. Third-Party Property Damage
    This kind of coverage protects you in the event that you cause harm to another person’s property in an accident. For instance, your Liability-Only Coverage will cover the cost of replacing or repairing the other vehicle if you collision with it and cause damage.*
  2. Third-Party Bodily Injury
    This kind of Insurance protects you in the event that you cause harm to another person in an accident. For instance, if you and another Vehicle Collide and the other driver is hurt, your Liability-Only Coverage will cover the other driver’s medical costs. *

It should be noted that although third-party bodily injury coverage has no upper limit, the insurer’s maximum payout for third-party property damage is limited.

Features of Liability-Only Cover in Motor Insurance
  • Third-Party Coverage: Offers monetary security against legal obligations resulting from a third party’s harm or demise.
  • Property Damage Compensation: Up to the designated policy maximum, this coverage covers harm to a third party’s property.
  • Mandatory by Law: According to the Motor Vehicles Act, all Indian vehicle owners are required to carry liability-only insurance.
  • Affordable Premiums: Because the policy provides limited coverage centred on third-party liabilities, it is reasonably priced.
  • No Coverage for Own Damage: In the event of a collision, neither the insured driver nor the insured vehicle are protected.
  • Legal Assistance: Offers assistance in court cases involving third-party claims resulting from mishaps.
Exclusions of a Liability only Cover

Third-party auto Insurance offers valuable protection, but it is not comprehensive. Liability-Only Coverage does not cover the following:

  1. Damage to your own vehicle
    Liability-Only Insurance will not cover damage to your own car if you are at fault in an accident. To safeguard your own car, you will need to get extra coverage, like comprehensive or collision coverage.
  2. Accident-related injuries you may sustain: Injuries you experience in an accident are not covered by Liability-Only Coverage. However, significant Unintentional Injuries can be covered by Personal Accident Insurance, which is also required for motor vehicle owners in India.
  3. Theft or vandalism
    Your car is not protected against theft or vandalism under Liability-Only Coverage. To guard against these dangers, you will need to get more coverage, such comprehensive coverage.
  4. Damage due to natural or manmade disasters
    The costs of repairing your car will not be covered by Liability-Only Coverage if it is damaged in a natural or man-made disaster. If you are looking for coverage for such occurrences, a comprehensive auto insurance policy can be the best option.
“I cannot give you the formula for success, but I can give you the formula for failure. It is: Try to please everybody.” david oswald
Inclusions of a Liability only Cover
  1. Third-Party Injury or Death
    covers legal obligations resulting from unintentional harm or death to third people.
  2. Property Damage
    offers restitution for harm done to a third party’s property, up to the policy’s limits.
  3. Personal Accident Cover for Owner-Driver
    includes the owner-driver’s required personal accident insurance in the event of their death or disability.
  4. Legal Liability to Paid Drivers
    protects against claims for harm or property damage brought on by a hired driver using the insured vehicle.
  5. Legal Costs
    provides coverage for Legal costs related to accident-related Third-Party claims.

Also Read: Car Insurance Coverage Options Beyond Liability

Services
Contacts
Visit Us Daily

101/F/3 G.T.Road(West) Mallickpara, Serampore

Have Any Questions?

+91-9230630841

Mail Us

help@moneymakingmc.com

Why is Liability-Only Coverage Important?

Liability-Only Insurance is crucial for a number of reasons, including:

In India, it is required by law. You risk a Fine or Perhaps Licence suspension if you are found to be operating a vehicle without insurance. Liability-Only coverage guarantees that you are in compliance with the law by offering the bare minimum of coverage.

Financial Protection is offered by liability-only coverage in the event that you harm someone in an accident or damage their property. You would be solely liable for any damages or injuries you cause if you didn’t have liability insurance, which may be very costly.

For drivers on a tight budget, liability-only coverage may be a cost-effective choice for auto insurance. Liability-only coverage offers the bare minimum of protection mandated by law at a reduced cost, even while additional coverage is crucial for protecting your own car and injuries.

ARE YOU HAVING ANY

MONEY MAKING QUERIES?

This is your opportunity to schedule a private consultation with one of our knowledgeable
wealth managers if you need professional assistance with your money-making issues.

BOOK EXPERT CONSULTATION
Should You Buy Comprehensive Coverage?

Your budget and the degree of protection you require should be taken into account when deciding whether to acquire comprehensive coverage. To safeguard your Investment, comprehensive coverage can be a better choice if your car is new or costly. However, Liability-Only Coverage can be a more affordable choice if your car is older.

Comprehensive Insurance is more costly than Liability-Only Coverage, but it offers more complete protection. The type and model of your car, your driving record, and the coverage levels you select are just a few of the variables that affect the price of comprehensive coverage.

Also Read: How Do Age And Gender Affect Car Insurance Rates?

The bare minimum coverage mandated by Indian law is liability-only coverage, which offers crucial protection in the event that you injure someone in an accident or damage their property. You must therefore get liability-only auto insurance, abide by the law, and safeguard your finances as a responsible driver.

* Standard T&Cs are applicable.

The topic of the solicitation is insurance. Before making a purchase, carefully review the sales brochure or policy wording for additional information on the benefits, exclusions, limits, terms, and conditions.