What is the Cost of Third Party Car Insurance?

A third party car insurance policy, also known as third party liability only policy, allows you to get yourself insured against all third party liabilities. A third party liability refers to the financial liability which may inflict on you due to a road accident or any other mishap involving your car.

As per the Indian Motor Tariff, every car owner is compulsorily required to have at least a third party car insurance, in the absence of which a fine of Rs. 2,000 and/or imprisonment of up to 3 months is applicable for the first offence.

Types of Third Party Liability

  1. Bodily injuries suffered by a third party
  2. Permanent disability/death of a third party
  3. Property damage of a third party

How Much Does a Third Party Car Insurance Cost?

The cost of an insurance policy is called premium. The premium of a third party car insurance policy depends on your car’s engine capacity and thus, remains the same across different insurance companies.

Third Party/Liability Only Car Insurance Premium Cost For Different Engine Capacities

Engine Capacity

Premium Cost

Less than 1,000cc

Rs. 2,072

Exceeding 1,000cc but not exceeding 1,500cc

Rs. 3,221

More than 1,500cc

Rs. 7,890

(Note: The above-mentioned premium costs are in effect from June 16, 2019)

What All is Covered Under Third Party Car Insurance Policy?

A third party liability car insurance policy offers the following coverage:

  • Bodily injuries or loss of one limb/one eye sight of a third party. In such cases, 50% of the compensation amount is given by the insurance company.
  • Loss of two limbs/two eye sights, permanent total disability or death of a third party. In such cases, 100% compensation amount is paid by the insurance company.
  • Damages caused to a third party property up to Rs. 7.5 lakh.

Which Additional Covers Can be Availed With Third Party Car Insurance Policy?

On payment of an extra premium, the policyholder can avail the following covers:

  • Personal accident cover of up to Rs. 15 lakh for the policyholder.
  • Personal accident cover of up to Rs. 2 lakh for co-passengers of the insured’s car.
  • Legal liability cover for a hired/paid driver.

For further reading:

7 Factors that Affect Car Insurance Premium

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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