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What Is Third-Party Coverage In Car Insurance Plans?

Published On Aug 27, 2022

What Is Third-Party Coverage In Car Insurance Plans?

A fundamental yet required kind of auto insurance, third-party coverage protects you financially and legally against third-party injuries, property damage, and vehicle accidents brought on by your covered vehicle. In addition, a car owner must always carry at least third-party insurance in their vehicle in accordance with the Motor Vehicle Act, otherwise they risk receiving a traffic ticket.

It is crucial to understand the significance of third party auto insurance and what it entails since this kind of insurance coverage expressly covers harm done to a third party's property or vehicle, as well as injuries or even death. Third-party auto insurance protects against the financial loss of such obligations in the event that there are legal complications resulting from an accident involving a third-party person or vehicle. To find out about third-party car insurance, read on.

What Is Third-Party Coverage In Car Insurance Plans?

What Is The Need For Third-Party Insurance?

In addition to the legal need, third-party insurance is useful if the covered car collides with another vehicle. Accidental death is one of the consequences that is impossible to quantify. The victim is permitted to file a claim for compensation in such circumstances. In this case, third-party auto insurance is relevant. It provides coverage for the insured vehicle in the event that a liability claim is made for causing death, property damage, or physical harm to a third party.

How Does Third-Party Insurance Function?

Third-party automobile insurance, or liability insurance as it is often known, aims to lessen the first party's legal obligations for harming or causing damage to a third party. The driver of the car is referred to as the first party and is liable for any harm or damage done to a third party. It is the third party who makes the first party the target of liability claims. By fulfilling the legal obligations owed to the third party, the second party or insurance provider helps ease the financial strain on the car owner. Bodily injury, death/disability liability, and property damage liability are the two categories of third party insurance claims that insurance companies cover.

What Are The Things Covered Under Third-Party Insurance?

Following are the things covered under third-party insurance - 

  1. Damages resulting from the death or injury of a third-party - Third-party auto insurance can shield you from financial losses resulting from damage claims made by the injured person or their family in the event that an accident affecting your covered automobile results in their injuries or even their death.
  2. Damages to another person's car or property - In the event that your covered vehicle is damaged in an accident, the cost of your third-party auto insurance covers injuries to third parties, their property, and their vehicles.
  3. Owner-driver personal injury protection - You can be protected against physical injuries if you add a personal accident clause to your third-party liability auto insurance policy. Your financial losses from hospitalisation costs and medical care are covered by this personal accident insurance policy up to a maximum of 15 lakhs. Additionally, it provides your family with a death claim in the event of an accident.

What Are Some Key Features Under Third-Party Car Insurance?

Following are some of the key features under third-party car insurance -

  1. Damage of property - Our third-party insurance coverage will pay up to 7.5 lakhs for third-party property damage brought on by the covered vehicle.
  2. Coverage for Personal Accidents - To your third-party auto insurance policy, you may add a personal accident cover to safeguard yourself from any bodily injuries brought on by an accident.
  3. Alternatives - You have the option of purchasing third-party automobile insurance online through the Tata AIG website or in person by visiting one of our local locations.


In addition to the legal need, third-party auto insurance is useful if the covered vehicle collides with another vehicle. Nobody can predict the extent of harm an accident will inflict because it may result in injury, incapacity, and occasionally even death. The victim is permitted to file a claim for compensation in such circumstances.

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This article is issued in the 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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