Third party car insurance protects you from any legal liability due to the involvement of your own car in an accident. Be it death, disability, injury or sizeable property damage to a third party, your insurer compensates for it. Hence, you are shielded from the financial liability arising towards a third party.
Also termed as an 'act only' cover, the third party car insurance reduces the car owner's worries with its scope of coverage offered during an accident.
The Motor Vehicles Act, 1988 has made Third party insurance mandatory for vehicles plying on the Indian roads. There are no two ways about it. You must have a third party insurance for your vehicle. You just cannot avoid it. A car without a third party insurance is deemed illegal. If you are tech-savvy, you can buy third party car insurance online through the official website or mobile application of your chosen insurance company or from an online insurance broking website also.
But what kind of car insurance does one choose? To make things simpler and stress-free,
motor insurance can be broadly classified into two types – third-party car insurance
and comprehensive cars insurance.
Since only damages to the third-party vehicle are covered, premiums are lower compared to a comprehensive insurance policy!
While there is no limit to the compensation in case of death and injury, compensation related to property damage is up to Rs. 7,50,000.
You don’t have to worry about paying someone else’s repair bills anymore. Third-party insurance takes care of it all!
Third-party car insurance provides coverage against any property damages, physical injuries or death of third parties if the car owner is at fault. For example, bumping the insured car with another car on the road.
It covers third-party liabilities arising out of;
Here’s the step by step process:
Please Note: This is a very basic information. For detailed guidance on how third party insurance claim procedure work
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Unlike the main car insurance policy , there are a few exclusions that are not covered under the third party insurance. Mentioned below are a few of these conditions:
For commercial vehicles, third party liability insurance covers the following:
| Third Party Liability | Comprehensive |
|---|---|
| Low premium but limited coverage | High premium but large and wide coverage |
| Covers 3rd party property damages | Covers 3rd party & own property due to thefts, fire, accidents, natural & man-made calamities. |
| This insurance is mandatory as per motor laws | This insurance is not mandatory |
| Zero add-on covers | A huge range of add-on covers |
The IRDAI takes premium amount decisions for 3rd party car insurance.
| DESCRIPTION OF THE VEHICLE | REVISED PREMIUM RATES 2017-2018 (RS.) |
|---|---|
| Exceeding 1500cc | 7890 |
| Exceeding 1000cc but not exceeding 1500cc | 2863 |
| Not exceeding 1000cc | 2055 |
For exact third party insurance premium rates as per your car model and condition, please provide your car details.
India has over 25 car insurance companies (public and private general insurers) that provide third party car insurance. In addition, it is mandatory to have a third party insurance coverage policy in India as per the Indian Motor Vehicles Act, 1988.
As per the Motor Vehicles Act, 1988, third-party claim dispute must be settled Motor Accident Claims Tribunal. You need to contact your insurer and submit the relevant documents along with an FIR from the nearest police station.
Third-Party Car Insurance Premium is determined by the Insurance Regulatory and Development Authority of India (IRDAI). It depends on the engine capacity (cc) of the vehicle and is revised on an annual basis.
No, you cannot customize a Third Party Car Insurance Coverage Policy.
No, It is advisable to purchase a comprehensive car insurance policy in place of a third-party car insurance cover.
Yes. As per the Indian Motor Vehicles Act, 1988, third party motor insurance is a mandatory component of your motor insurance. Even if you are good driver, you may end up in an accident due to no fault of your own. The offending driver is insured with the third party motor insurance allowing you to raise a claim for your losses.
In order to raise third party car insurance claim it is advised to have the following documents readily available.
When it comes to bodily injuries or death, there is no specific amount set for the compensation amount. However, in the case of third party property damage, the insurer would be accountable for a maximum amount of Rs. 7.5 lakhs.
You have a span of about 60 days from the date of the accident to file a case with the Motor Accidents Case Tribunal. However, the earlier you initiate the claim settlement process, the better it will be for you.
Disclaimer - Above mentioned prices are for a 2 years old Maruti Wagon R, 1.2 VXI AMT OPT (1197 CC) registered in Mumbai & previous policy has expired.
