Not having a cover for your vehicle is like driving one at night without switching on the head lights. You need to compulsorily take a third-party insurance, or third-party liability cover, sometimes also referred to as the ‘act only’ cover, when you buy a vehicle. It is referred to as a ‘third-party’ cover since the beneficiary of the policy is not the two parties involved in the contract — the insured and the insurance company.

It covers the injuries to a third person, or damage to the third person’s assets. But, it is better to go for a comprehensive motor insurance.
You can negotiate for a discount while buying. Also, soon general insurers would be able to price the premium on the policy wordings.
As a buyer, you will need to understand how the wordings of the policy would affect your premium. Factors like the driver’s age and record, the type of vehicle and usage could determine the premium in the future. For now, look for lower rates without compromising on any of the clauses or feature.
Always remember, to transfer your no-claim bonus to the new car, if you are replacing your old one. This way, you would be able to save 20-50 per cent on the first premium of your new car.

Important

• Talk directly with insurers or brokers while comparing premiums.
• Negotiate on discounts.
• Check if there is deletion of any clause or benefit.
• Opt for co-payment/deductible to lower premium outgo.
• Make sure benefit of no-claim bonus is added, if available.
• Receive the original policy certificate/cover note.