Inadequate Comprehensive Third Party Liability

by Ronel Forbes

January 5, 2022

The goal of insurance is to ensure that you suffer the least amount of financial loss possible in the event of a disaster. Damage to your automobile as well as to others can be covered by car insurance.

A third-party liability car insurance policy protects third parties who may be harmed by your vehicle. The Motor Vehicles Act makes it necessary, and driving without a Third-Party Liability policy is a criminal violation. However, in terms of the above-mentioned insurance objective, it is not the best coverage.

Your Automobile Isn’t Covered

Damages to your vehicle are not covered by third-party liability insurance. You’re paying an insurance premium solely to follow the rules, yet your automobile is still uninsured for own-damage damage.

This means that if your automobile slips and collides with a tree, your insurance coverage will not cover the cost of repairing the damage. You will also be uninsured if your car is stolen or damaged as a result of a natural or man-made disaster.

Minimal Cover for Personal Accident

Personal Accident coverage is included in a Third-Party Liability policy for the owner/driver. This is contingent on the car insurance policy’s terms and conditions.

Such a plan may not be adequate in light of today’s hospitalization and medical treatment costs. If you incur a personal injury while driving the car, your medical bills may be significantly more than the claim amount.

Add-ons are not permitted

Add-ons play a big part in extending the coverage of your car’s insurance. An auto insurance policy is by its very nature general, but you can tailor it to some extent by adding appropriate Add-ons.

For example, you can purchase a Passenger Cover to cover your fellow passengers or an Engine Protection Cover to extend the coverage of your insurance policy. However, such Add-ons are not available with simply a Third-Party Liability auto insurance coverage.

Is There a Better Option?

The foregoing arguments demonstrate that a Third-Party Liability insurance policy is insufficient for your vehicle. The alternative is to get Comprehensive Car Insurance coverage. It includes the Third-Party Liability insurance policy’s obligatory feature.

After acquiring the policy, you will be in compliance with the law.

It also protects your automobile against theft and damage, and you can add-ons if you choose. In the event of a personal injury, a Personal Accident Add-on can provide you with additional coverage. Popular Add-ons include Zero Depreciation, Roadside Assistance, NCB Protect, and Return to Invoice, among others.

Let’s look at the advantages of comprehensive auto insurance over third-party coverage and how they affect your coverage. You should keep in mind that third-party insurance does not provide these benefits.

In the event of damage, there is extensive coverage.

The most significant benefit of comprehensive automobile insurance is that it covers all types of vehicle damage, including personal injury, third–party liability, and theft. Furthermore, the cover guards against natural and man-made disasters such as fire, strikes, and rioting.

In the event of a mishap, this comprehensive coverage will save you money on costly repairs. Comprehensive vehicle insurance has a little higher price than third-party auto insurance, but the coverage is more thorough. It is the most effective technique to protect the vehicle and save costly repairs in the event of an accident.

Peace of mind

A comprehensive auto insurance policy allows you to relax and enjoy your vehicle without worry. In the event of an accident, it allows you to claim payments even if the other driver was at fault.

With a complete policy, you can avoid being sued in court for any losses to a third party, and if you die in an accident, your family will receive a corpus. The family may experience financial difficulties if they do not have adequate coverage.

Furthermore, if you do not have the appropriate insurance coverage, you may be forced to utilize your personal savings to cover the expense of the car’s repairs. Even if you are involved in an accident that necessitates hospitalization, you will be responsible for all charges.

Distribution of services is quick and easy.

With comprehensive car insurance, the organization has a large distribution network that can be of great assistance. In the event of an accident, you can get immediate roadside assistance, which will help you remain calm and stress-free.

Anti-theft insurance

You may believe that your insurance policy will compensate you if your car is stolen, but this is only true if you have comprehensive car insurance. Theft coverage is not included in third-party insurance.

What is the proper procedure for purchasing a comprehensive insurance policy?

Purchasing comprehensive insurance may appear to be a difficult undertaking. Here’s a quick guide to purchasing comprehensive auto insurance coverage. Purchasing vehicle insurance online has become quite simple in recent years.

Go to the website of the auto insurance company you’ve chosen.
Choose your policy.
Recognize the terms and conditions.
Please make the payment.
The policy will be delivered to your account.

The Best Motor Car Insurance Policy

Choose an insurance policy that provides appropriate coverage at a reasonable cost. Purchasing vehicle insurance online has become quite simple in recent years. Visit the website of your selected car insurance, select your policy, read and accept the terms and conditions, pay, and receive your policy in your mailbox.

Make sure you understand the policy’s inclusions and exclusions before making a decision. Remember to keep a printout of your car insurance policy in your car, together with your vehicle’s Registration Certificate and Pollution Under Control Certificate (PUC).

Conclusion

In the Philippines, third-party liability insurance is required by law. A third-party automobile insurance coverage protects the policyholder from civil liability stemming from harm to a third party caused by the policyholder’s negligence.

Even if third-party liability insurance is one of the most affordable options, it is not the best option for your vehicle. Damages to the insured vehicle are not covered by third-party liability insurance. Theft of the insured vehicle is not covered by a third-party insurance policy.