Third-Party Car Insurance
Third-party car insurance is a basic insurance policy that is required by law in India. It helps cover the costs if your car causes damage to someone else’s property, injures someone, or causes death. However, it doesn’t cover damages to your car.
Key Features of Third-Party Car Insurance
| Categories | Key Featues |
|---|---|
| Coverage | Includes protection for death, injury, and property damage caused to third parties in an accident. |
| Premium | Affordable premiums, determined by the IRDAI, make it a budget-friendly option. |
| Legal Requirement | Third-party insurance is mandatory for all vehicles in India to ensure legal compliance. |
| Compensation | Compensation is provided based on the insurance provider's policy and the severity of the damage or injury. |
Why Do You Need Third-Party Car Insurance?
Third-party insurance is essential because it protects you from unexpected costs arising from accidents involving your vehicle. If you cause damage to someone else's property, injure someone, or cause a fatality, this policy covers the financial liability. Without it, you may be left responsible for substantial legal fees or compensation claims.
It is also crucial for owners of older vehicles, especially those over five years old, as it offers protection without the high costs of comprehensive coverage.
Benefits of Third-Party Car Insurance
Financial Protection
It covers the costs of third-party damages or injuries, so you don’t have to dip into your savings.Legal Protection
Covers legal liabilities for damages caused by your vehicle to a third party.Fulfills Legal Requirement
It is mandatory under the Indian Motor Vehicles Act, to ensure that you are legally compliant when driving.Affordable
Third-party insurance is cheaper than comprehensive policies, making it an affordable option for basic coverage.
Understanding Coverage and Exclusions in Third-Party Car Insurance
Covered Insurance
Third-Party Liabilities
This covers compensation for damage to a third party’s property or vehicle, as well as injuries or deaths caused by an accident involving your car.Property Damage
If your car damages someone’s property (e.g., a fence or shop), third-party insurance covers the repair costs.Injury or Death
If your car causes injury or death to another person, the insurer will provide compensation to the victim or their family.Personal Accident Cover
Provides coverage for the car owner/driver in case of disability or death due to the accident, with a coverage limit for the owner-driver.Legal Fees
Covers legal costs and expenses incurred if you are involved in a legal case due to an accident, protecting you from financial strain.Towing Assistance
Covers the cost of towing your vehicle to the nearest repair facility if it becomes inoperable due to an accident.
Not-Covered Insurance
Own Vehicle Damage
Any damage to your own car, bike, or vehicle is not covered by third-party insurance policies under any circumstances.Driving Under the Influence
If you are driving under the influence of alcohol or drugs, the policy does not cover damages.Invalid License
If the driver does not have a valid driving license, the insurance will not cover third-party damages.Outside Geographical Limit
If the accident occurs outside the specified geographical area, it will not be covered under the insurance policy.Illegal Activities
Damages caused while using the vehicle for illegal activities, such as racing, are not covered.Nuclear or War-related Damages
Any damage caused by nuclear perils, war-related activities, or military operations is not covered.
How to File a Third-Party Car Insurance Claim?
If you need to file a claim, follow these steps
Application
The victim or their legal heir applies for compensation through the car owner’s insurance policy.
FIR
An FIR must be filed with the police, providing all required details about the accident.
Motor Accidents Claims Tribunal
The case is registered with the Motor Accidents Claims Tribunal for further legal proceedings.
Compensation
Compensation is provided based on the court's decision, with a property damage limit as per IRDAI regulations.
Compare Car Insurance Policies
Compare Third-Party, Comprehensive, Own Damage, and Zero Depreciation car insurance plans to find the best coverage for your vehicle.
| Coverage Aspect | THIRD-PARTY | COMPREHENSIVE | OWN DAMAGE | Zero Depreciation |
|---|---|---|---|---|
| Accidental Damage to Own Car | ||||
| Fire Damage to Own Car | ||||
| Natural Disaster Damage to Own Car | ||||
| Damage to Third-Party Vehicle | ||||
| Damage to Third-Party Property | ||||
| Personal Accident Protection | ||||
| Injury or Death of Third Party | ||||
| Theft Protection for Own Car | ||||
| Flexible Insured Declared Value (IDV) | ||||
| Additional Add-On Coverage |