Third Party Car Insurance

Key Features of Third Party Car Insurance

Listed below are the key features of third party liability car insurance:

Third Party Car Insurance Premium Rates [2024]

The Insurance Regulatory Development Authority of India (IRDAI) has standardised the premium price for motor insurance. Please refer to your required car insurance premium price below:

Third Party Car Insurance Rates for Petrol, Diesel and Hybrid Cars:

Third Party Car Insurance Rates for Electric Cars:

Benefits of Third Party Car Insurance

Mentioned below are some of the major benefits of having a third party or liability only car insurance:

1. Complying With The Law: When you have a third party car insurance you can have the peace of mind of complying with the law. This is because if you are asked by the traffic police to show your documents, you will be covered and do not have to pay any fine with respect to having your third party insurance in place since it is mandatory by law.
2. Low Premium Amount: A third party liability car insurance comes at the lowest premium among all the car insurance types. If you are just buying this particular insurance, it still proves to be very crucial at the time of crisis.
3. Offers Financial Assistance Against Legal Liabilities: In case you get into an accident where the third party person is injured or property is damaged, you are liable to pay for them legally. When you don’t have a third party car insurance, you are breaking the law and at the same time end up paying from your pocket. This price that you end up paying is not regulated and can be anything which financially might leave you uprooted. Having an act only car insurance gives you that much needed financial cushion that will help you in case there is a crisis pertaining to a third party.
4. Peace of Mind: Majority of our health issues happen because of financial liabilities, with this third party car insurance, be assured of your peace of mind at least in the arena of being covered for any damage caused to another person or their property while you are driving on the road. This may feel like a very small point in the larger scheme of things but turns out having your peace of mind is one of the most important benefits of having a third party car insurance.

What is Covered in a Third Party Car Insurance?

When we talk about what is covered in a third party liability car insurance, we mean to describe the inclusions of the plan. Here’s the detail for you to understand it better:

1. Third Party Injury or Death: In case you end up injuring a third party person by accident or in case of death of the third party, you are liable to legally pay them for their loss. A third party car insurance covers you financially for the liabilities arising from a third party’s injury or death. In case of death of the third party, there is usually no limit on the price to be paid by your insurer, however it is calculated on the basis of the the third party’s age, occupation, and financial status.
2. Third Party Property Damage: Due to the accident, when you end up damaging a third party property, your third party liability car insurance covers you financially for the losses up to 7.5 lakh Indian rupees.
3. Personal Accident Coverage: While this is an add on that is made to cover you - the policyholder, this is the only first party coverage available with a third party car insurance as an add on. This coverage is mandatory by law and has to be purchased as an add on. A personal accident safeguards you financially in case you are injured in the accident as well. It also provides a sum of up to 15 lakh Indian rupees to your dependents in case of your demise.

What is Not Covered in a Third Party Car Insurance?

When referring to what is not covered, we mean to describe the exclusions under third party car insurance as listed below:

1. Own Damage: Damages made to your car (excluding any personal accident coverage mandated by law with the personal accident add on), are excluded from third party car insurance.
2. Driving Without Valid Licence: If you meet with an accident while driving without a valid licence or with an expired driving licence, you are not liable to get any financial support from your insurer. Additionally, if you meet with an accident while you have a learning licence, you must be accompanied by someone who holds a driving licence during the accident. Otherwise, your insurer will not provide you the coverage for third party liability.
3. Driving Under The Influence of Alcohol or Drugs: In case you are driving under the influence of alcohol or drugs and end up injuring a third party person or damaging their property, your insurer will not be liable to pay any compensation to the third party and the financial consequences are entirely to be borne by you.
4. Accidents Happening Outside The Stated Geography: If the accident happens outside the stated geographical boundaries in your policy document, then in that case you are not covered within third party car insurance. Note that in case you have a Geographical Area Extension under Indian Motor Tariffs (IMT 1), then you are eligible to get the benefits of your car insurance even when travelling outside the stated geography in selected international countries like Bhutan, Nepal, Sri Lanka and Pakistan.
5. Usage of Private Vehicle For Commercial Use: If you meet with an accident where you injure a third party or damage their property while using your personal vehicle for any sort of commercial use, your insurance company is not liable to cover you financially.
6. Contractual Liabilities: In case you have sold your car to someone and then meet with an accident while driving that car, you are not going to have your third party car insurance’s financial safety net.

How To Buy Third Party Car Insurance from InsuranceDekho?

Buying a third party car insurance from InsuranceDekho is quick and easy, even when you are not sure about which insurer to go with. Here’s a step by step process for understanding the same for both online and offline modes:

Buying Third Party Car Insurance Online with InsuranceDekho

Follow these steps mentioned below to buy a third party liability car insurance online with InsuranceDekho:

Step 1: Visit InsuranceDekho’s website and Enter Your Car Registration Number

Visit the car insurance home page on InsuranceDekho website. You will see a form as soon as you land on the page. Enter your car registration number on the form’s prompt. In case you are buying third party car insurance for the first time and it is for a brand new car, then click on the prompt right below the car registration form prompt “brand new car.”

Step 2: Select A Suitable Plan

As soon as you enter the details, a pop up confirming your details will be showcased, approve it and move ahead if it's showing correct information (details like bike brand, year and city of purchase and fuel type will be reflected). Select option “yes it's my car” to continue. If the information is incorrect, select “no it's not my car” and re-enter your registration number.

In case you have selected the prompt “brand new car,” you will be asked to choose your car brand, model, and fuel type along with the engine configuration, model year and city of purchase. Once you do that, you will be required to enter your name and valid mobile number to view all plans tailored for your car’s needs.

Now in both the above cases, select a suitable plan as per your requirements by clicking on “Price.”

Step 3: Verify Details & Make Payment

Now verify owner and vehicle details to move to the payment gateway. You can choose to make the payment using UPI, credit or debit card, or net banking as per your liking.

Step 4: Download Policy Document

Once you have made the payment, you will now be able to download your policy document from InsuranceDekho.

Offline Purchase from InsuranceDekho

In order to purchase your third party car insurance from InsuranceDekho offline you can connect with one of our customer executive team members by calling us at +91-7551196989 or by emailing us at support@insurancedekho.com. Our team will be able to assist you in purchasing this insurance on call. In cases where you may require home assistance to buy car insurance, one of our relationship advisors will come to your home to help you book the insurance offline after your consent.

Documents Required

Listed below are all the documents that may be required for you to buy a third party car insurance:

• Identity Proof: Documents like your Passport, Aadhaar Card, Driving Licence, Voter ID will be required that can prove your identity.
• Address Proof: Documents like your Voter ID, Passport or Aadhar Card is required as proof of your address.
• Registration Certificate (RC): Your car’s registration certificate or RC is also required for reference.
• Passport Size Photograph: Two recent passport size photographs will also be required for buying third party insurance (although while buying online you may be asked to submit a digital copy or this step might entirely be skipped depending on the insurer requirements).
• Previous Policy Number: In some cases, you will also be required to present your old third party liability car insurance policy number for reference.

Step 1: Visit InsuranceDekho website

Visit the car insurance main page on InsuranceDekho’s website and select Renew Policy from the header menu. You can do so even if you visit any other page on our website or the homepage www.insurancedekho.com

Step 2: Enter Mobile Number to Verify Details

Enter your mobile number in the pop up and tap on “Continue.” Now verify your details by typing the OTP that you receive on your registered mobile number by clicking on “Verify OTP”

Step 3: Select Your Policy and Review Details

From the list of all your open policies, select your third party car insurance policy.

Review your policy before renewing, see if you would like to make changes like whether you would like to buy the same policy or buy a comprehensive car insurance instead of only a third party car insurer or if you would like to change the insurer depending on your current needs.

Step 4: Make Payment

Choose your preferred payment method like UPI, net banking, credit or debit card and make the payment.

Congratulations, your policy is renewed now. You can download your policy document.

Factors That Affect Your Third Party Car Insurance Premium

There can be various significant factors that will determine and affect the price of your third party car insurance premium. Below are the major factors that you must be aware of:

1. Inflation: Any inflation in the insurance industry is bound to affect the price of your third party car insurance.
2. Deductibles: Your insurer and you can come to a common agreement where you decide the price share you and your insurer will have in every claim. For example, you agree on a deductible of 30% and the insurer on 70%. This means if a claim of INR 1000 comes, 300 will be paid by you while your insurer will pay the remaining 700. The amount 300 in this case is the agreed upon deductible.
3. Previous Claim History: The amount of claims you have made in the past also determines the cost of your premium. If you have made no claims in the past, your premium price will be relatively lower than someone who has made multiple claims in the past.

How To Raise a Claim for your Third Party Car Insurance?

Raising a claim for your third party car insurance is simple but, first it is important to know the conditions under which a claim can be raised:

• Hospitalisation expenses for third party
• Third-Party Demise
• Third-Party Property/ Vehicle Damage

Here is a step-by-step guide on how to claim third-party car insurance in India:

Step 1 - File an FIR

In the event of an accident, the first step is to file a First Information Report (FIR) at the nearest police station. Make sure you gather enough evidence from the scene to substantiate and provide as proof, click pictures and take videos of your as well as the third party’s property or of the accident area. It is important to collect a copy of the FIR charge sheet for future reference.

Step 2 - Notify Your Insurer

Inform your insurer immediately about the accident and provide them with all the necessary details as soon as possible. This will help initiate the claim process.Your insurer will then provide a surveyor who will evaluate your claim status and accident scene. They will then share all the detail with MACT - Motor Accident Claims Tribunal who will then decide whether or not to give you the claim amount and what the amount should be.

Step 3 - Claim Status

You will then be informed about the claim status and your claim will accordingly be settled.

Third Party Vs Comprehensive Car Insurance