What is Third-Party Car Insurance?

Third-party motor insurance is a type of liability insurance that protects the insured party from the claims of a third party in case of an accident. Third-party car insurance is mandatory for all vehicles according to the Indian Motor Vehicles Act, 1988.

Why Do You Need Third-Party Motor Insurance?

A third-party car insurance policy covers any damage or injury caused to another person or their property while operating your vehicle. However, the damage caused to the insured vehicle is not covered.

If an insured vehicle causes an accident, the insurance provider will handle the financial responsibility to compensate for any damaged property or injured persons.Third-party motor insurance is mandatory for all cars in India. You may be fined a hefty amount or even be imprisoned if found driving without a policy.

Inclusions of Third-Party Car Insurance Policy

Getting third-party insurance for your car gives you the peace of mind of knowing that the insurance will cover the following liabilities:

• The costs associated with injuries or death that may arise from an accident. There is no limit on coverage in case of death.

• Any damage your vehicle causes to another person's property. Up to Rs.7.5 Lakh in damage will be covered in case of property damage.

• The costs of legal defense in case of any incident leading to legal action will be covered by the insurance policy.

Exclusions of Third-Party Car Insurance

The insurance may not provide coverage in the following cases:

• The person driving the vehicle did not have a valid driver’s license.

• The vehicle was being used for illegal activities at the time of the accident.

• The driver was under the influence of alcohol or other intoxicants when the accident occurred.

• The accident was a deliberate attempt to damage life or property.

• The insurance will not provide coverage for any damage to the insured party’s vehicle or health.

Benefits of Third-Party Car Insurance

Having third-party insurance is mandatory for every vehicle owner in India. The benefits of having one are as follows:

• Hassle-free process of purchasing policy.

• Cost-effective and affordable premiums.

• Protection from any financial burden from the liabilities toward third parties, including property damage, injury, or death.

Third-Party Insurance Premium

The premium rates of third-party car insurance are set by the Insurance Regulatory and Development Authority of India (IRDAI). The rates are decided according to the Cubic Capacity (cc) of the engine. For electric vehicles, the premium rates depend on the capacity of the battery.

Premium rates for fuel vehicles:

Premium rates for electric vehicles: