You’ve set off on a drive with your family and suddenly you swerve to avoid a fast-moving car coming directly your way. Despite your best efforts, you head for a collision. Thankfully, you and your loved ones are unscathed. However, the other car driver sustains massive injuries and his car is in no shape to even move an inch forward. What do you do to avoid the legal ramifications of this unfortunate event?
To avoid the third-party obligations coming your way, you would want to know more about Third Party Liability or TPL car insurance. Choosing the proper TPL plan is an integral part of road safety in the UAE. It protects all impacted third parties by providing the adequate level of cover in the event of an accident.
Read on for a closer look at the features, scope of coverage, and benefits of TPL car insurance in Dubai and other emirates in the UAE.
What is Third Party Liability Car Insurance?
Mandatory as per UAE law, a third-party liability policy provides basic car insurance that covers legal liability to a third party resulting from a car accident where the insured is at fault. It covers death or bodily injury sustained by a third party or person. It also extends coverage to third party property damages caused by the vehicle of the insured.
Limit of Coverage for TPL Insurance
When you are held liable for the death or bodily injury of a third party, or have been held guilty of damaging third party property such as their car, your insurance company will indemnify or pay on your behalf. The damage limit for third party property refers to the financial cover that you are eligible to claim with respect to the damages inflicted to third party property. It is a pre-set amount. However, the payments will be made directly to the third-party claimant and not to you, the insured. The limit for liability for death or bodily injury to the third party is determined by legal authorities and is to be covered by the insurance company selling the TPL policy.
The downside of third party plans is that no protection is provided for the damages or total loss caused to your insured vehicle. Remember, TPL is the only available option for you in case your car is seven years old or more.
Third Party Liability Car Insurance with Fire Coverage and Theft
The basic TPL insurance plan offers coverage for third party property damage only. In this scenario, the inclusion of add-ons for fire and theft coverage would make the plan more worthwhile. However, you will have to pay an increased premium amount to avail this benefit.
Want more coverage? Choose Comprehensive Car Insurance
You may require more than third party liability protection to cover yourself, your passengers, and your car. A comprehensive car insurance policy would offer this coverage. And you can even tailor it to add more benefits. For instance, you can include personal accident cover in your basic comprehensive plan by paying an additional premium. The other add-ons in a comprehensive insurance plan include cover for agency repair, windscreen damage, recovery breakdown or roadside assistance, off-road cover, alternative or rental vehicle cover, geographical area extension cover, and so forth.
Is TPL Insurance Right for You?
In case you own an expensive sports or luxury car, then it is crucial to opt for a premium comprehensive insurance plan that covers just about anything related to your prized possession. On the other hand, if your car is an old one that’s likely to incur low-cost repairs then it’s better to go for basic third-party liability insurance to save on premium.
The Way Forward…
Looking to buy TPL car insurance? Make sure you do your research and compare your options before committing. Weigh the pros and cons of buying a TPL cover vis-a-vis a comprehensive cover, and choose the one that meets all your requirements.