Third-party car insurance is a kind 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.
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 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.
Getting third-party insurance for your car gives you the peace of mind of knowing that the insurance will cover the following liabilities:
The insurance policy will cover the costs associated with injuries or death that may arise from an accident. There is no limit on coverage in case of death.
The policy will pay for 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.
If an unfortunate incident leads to legal action, the costs of the legal defence will be covered by the insurance policy.
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.
Having third-party insurance is mandatory for every vehicle owner in India. The benefits of having one are as follows:
The process of purchasing third-party insurance is quite simple and hassle-free. You can easily purchase a policy online.
Third-party insurance policies are very cost-effective and premiums are usually affordable for the common man.
It protects the insurer from any financial burden that may arise from the liabilities toward the third parties, including property damage, injury, or death.
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:
Engine Capacity | Premium Rates |
---|---|
Less than 1000 cc |
Rs.2,094 |
1000 cc to 1500 cc |
Rs.3,416 |
More than 1500 cc |
Rs.7,897 |
Premium rates for electric vehicles:
Battery Capacity | Premium Rates |
---|---|
Less than 30 kW |
Rs.1,780 |
30 kW to 65 kW |
Rs.2,904 |
More than 65 kW |
Rs.6,712 |
Third-party car insurance is a mandatory insurance policy that every vehicle operating on Indian roads must have. This policy provides coverage for the third party against any damage or injury caused by the insured vehicle.
Third-party insurance covers property damage, damage to the vehicle, physical injuries, and death. The policy will not provide any coverage if the driver is intoxicated, does not have a valid license, or is involved in any illegal activity at the time of the incident.
The premium rates for third-party car insurance are decided by IRDIA according to the engine capacity of the vehicle. The cost of the insurance policy is designed to be cost-effective and affordable.
Third-party insurance covers property damages up to Rs.7.5 Lakh, and in case of death there is no limit.
The premium rates of third-party car insurance depends on the engine capacity of the vehicle. For vehicles with less than 1000 cc engines it is Rs.2,094, from 1000 cc to 1500 cc it is Rs.3,416, and for 1500 cc and above it is Rs.7,897.
It is legal to buy third-party car insurance from two different companies but it is not recommended as it may violate the terms and conditions of the companies.
Yes, you can request the insurance provider to convert from third-party to comprehensive insurance at the time of renewal.
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