Insurance is a vast field especially when it comes to car insurance in Pakistan. It covers many aspects ranging from small claims to the claim of totaled vehicles. In Pakistan, it is mandatory for all the drivers to get Third-Party Liability cover. You must be wondering what third-party liability is? Let’s take a look at it!

In Pakistan, the bare requirement for car insurance is third-party liability cover. This ensures safe driving practices and provides the best coverage for the needy. Third-party liability covers the damages done by an accident caused by you to another driver. 

Does Third-Party Liability Cover The Insurer?

Third-Party Liability is the minimum cover you can get when getting your car insured. This is to help you keep your finances secured in case of an accident where you are at fault or the other party forces you to pay for damages done by you. But what happens to the damage done to your car as a result?

Unfortunately, third-party liability only covers the other party and not you. For a policy that covers you as well, you will need to go for a different one.

What Happens If I Don’t Have Third-Party Coverage?

In case of an accident caused by you, if you don’t have third-party insurance and the other party files a claim, you will have to pay the price of all the damages and hospital bills in case someone got injured. But if you have third-party liability and the other party files a claim in an accident caused by you, then your insurer will cover you for the cost of damages and medical procedures.

What’s The Point Of Getting Third-Party Cover Then?

As far as we are concerned, we always suggest our clients buy the comprehensive cover unless they specify to get another type of cover. The point of getting the third party cover is to get the mandatory coverage to avoid unnecessary conflict with the law. It is the minimum cover one can have and it does not always mean that minimum cover is all you need. Neither does it imply that the cover is inexpensive. It might be in your budget but in the long run, it can backfire and cost you thousands. 

Isn’t It A Free Pass For Reckless Drivers?

This might look like a free pass but insurance is a fully legal process. From surveying the vehicle to covering the vehicle in case of a claim. Whenever a claim is filed, a surveyor comes to the spot for investigation and other legal authorities are involved as well. All-in-all it is not a quick process but a lengthy process involving legal authorities that you cannot outrun.

Obviously, your insurer will not take the blame for any irresponsibility from you. Hence after investigation of the scene and taking the driving history of the driver, it is decided whether the insurer is eligible for filing a claim or not.

Accidents happen all the time, drivers make mistakes all the time. As a general rule of thumb, even if you are driving responsibly there is always someone who is not and they might hit you even though you are not driving recklessly. 

Why Do People Get Third-Party Liability?

There can be many reasons people might want to buy third-party coverage. Some of them being, they might want minimum coverage, they might already have other types of coverage, or maybe they want extra protection even though they already have comprehensive coverage

With Let’s Compare not only do you get your insurance quotes and assistance but also get your most important questions answered. Today we covered everything you need to know about Third-Party Liability Cover.

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