Third Party Legal Liability Coverage on Motor Vehicle Insurance
Posted At August 6th, 2018
Motor vehicle is an important part in our life today, especially the younger generation. When you have a car or a motorcycle at home, you can easily and conveniently go from place to place.
You do not need to worry about the poor condition of the public transportation vehicles.
Why Is a Third Party Legal Liability Coverage Necessary?
Accident is the main risk for drivers on the roads. It happens unexpectedly. Not one driver, including you, would want it to happen.
The fact is, the causes of traffic accidents are dominated by the drivers’ negligence factor.
Even you can be negligent and cause an accident involving a third party, for example if you hit someone else’s car or crash into their property.
If this were to happen, you must be ready to deal with the claim for the damages caused or to give compensation (for the medical treatment or death) should there be any fatality.
This is the reason why third party legal liability coverage is crucial and should be incorporated into your vehicle insurance.
It is so you do not need to worry because the insurance will cover all the losses.
Of course, this does not mean you can drive recklessly and ignore your own and other people’s safety.
What is Third Party Legal Liability?
Third party legal liability is a liability towards a third party who is harmed by the insured. The liability to compensate losses (vehicle, property, or fatality) to a third party outside the insurance’s object of coverage.
All the conditions on third party legal liability are listed in the Indonesian Motor Vehicle Insurance Standard Policy (PSAKBI), including the types of liability and exceptions.
You can automatically obtain this coverage if you purchase the comprehensive vehicle insurance, that is, a type of insurance that offers comprehensive coverage.
However, you can also obtain it separately to guarantee coverage on its own, or to complement an existing insurance coverage.
For example, a total loss only insurance generally does not include third party legal liability coverage. Therefore, you can purchase it separately to add it into your existing vehicle insurance.
What is Covered and How Much is The Coverage
The coverage for third party legal liability is not limited only to compensating for the damage on the motor vehicle.
The extent of coverage can include compensation for the damages on properties, medical expenses, loss of income due to injuries or disabilities, and death.
Compensation can even be given to the passengers and driver, and to the chauffer if one is hired by the insured.
The additional premium for this coverage is considerably cheap and depends on the value of coverage you want.
The amount of coverage is basically unlimited, even though it is still regulated by the government.
However, the insurance company naturally has a risk selection function which can determine the appropriate and reasonable limitations on the amount of coverage.
You can ask for a higher amount of coverage than what is determined by adding a little bit of the premium.
Third party legal liability coverage essentially gives you a sense of security and comfort in driving on the road. If an accident were to happen, you do would not need to spend much time and energy in a conflict and getting claimed by a third party.
Therefore, make sure the third party legal liability coverage is already included in your motor vehicle insurance policy.
However, driving carefully is still your responsibility. This is how you can really contribute to the minimization of traffic accidents.
Remember, prioritize safety.
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