Third Party Car Insurance
Third party insurance cover is the basic insurance that is compulsory for every car owner to hold while driving. It gives coverage to the third parties for their damages caused due to an accident with the insured car. Also, being a mandatory cover, it delivers legal compliance as well along with the coverage.
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Third Party Car Insurance Plans
- CASHLESS GARAGES 6,800
- CLAIMS SETTLED 89%
- ZERO DEP. CLAIMS UNLIMITED
- Covers Third Party Person
- Covers Third Party Property
- CASHLESS GARAGES 3,100
- CLAIMS SETTLED 95%
- COMPREHENSIVE CLAIMS UNLIMITED
- Covers Third Party Person
- Covers Third Party Property
What is Third Party Insurance Cover?
, also known as third party insurance policy provides coverage from all the third party liabilities which may arise during an accident or mishap such as involving your car. This insurance policy provides coverage for third party liabilities such as bodily injuries or demise of the third party or property damages for upto Rs. 7.5 lakhs. This policy has been made mandatory for every car owner in India as per Motor Vehicles Act.
Key Features of Third Party Car Insurance
The following are the features of the insurance policy:
|Key Feature||Availability with Third Party Cover|
|Property Damage||Available with a limit of Rs. 7.5 Lakh|
|Personal Accident Cover||Available|
|Purchasing Options||Online and Offline|
|Own Damage Costs||Not Covered|
How Does Third Party Insurance Work?
Under a TPPD car insurance policy financial assistance is provided in case any liabilities such as injuries, death and property damage that may happen due to an accident or mishap involving the insured vehicle.This insurance cover lessens the financial burden of the policyholder for any damage sustained by a third party with the insured car.
In case of an accident, the insured person should intimate the insurer immediately about the mishap before raising a claim. After the claim is raised, the insurance company appoints a surveyor to examine the extent of damages and verify the estimated repair cost. After the verification process, the insurance company pays off the amount of the claim.
Importance of Third Party Car Insurance Policy
As per Motors Tariff Act, third party insurance policy (TPPD) has been made compulsory for every vehicle owner in India. A 3rd party insurance policy is known for providing the most essential and basic type of coverage. This car insurance policy is very affordable as compared to other car insurance policies in India. Besides, helping you comply with the law, this policy for your vehicle provides basic coverage which is very essential while driving a car.
Why Do You Need Third Party Insurance?
Apart from the legal clause, this insurance comes in handy when the insured car hits another vehicle. Nobody can gauge the level of damage caused by an accident as it can even lead to injury, disability and sometimes death as well. In such cases, the victim is allowed to register a case claiming compensation. Here third party insurance comes into the picture. A 3rd party insurance policy provides coverage to the insured vehicle in case of any liability claim that may arise for causing bodily injury, property damage or demise of the third party.
As per the guidelines of IRDAI, while there is no limit in case of death, the property damage coverage is limited up to Rs 7.5 lakh in the case of car insurance. It is better to stick to this insurance if the insured vehicle is more than 5 years old.
How are Third Party Insurance Premium Rates Calculated?
Here’s a breakdown of how Third Party Insurance Premium Rates are determined and what they generally entail:
1. Engine Capacity:
The capacity of your vehicle’s engine plays a crucial role in determining the Third Party Insurance premium. Vehicles with higher engine capacity are usually charged higher premiums.
2. Vehicle Type:
The type of vehicle you own (two-wheeler, four-wheeler, commercial vehicle) also affects the premium rate. Commercial vehicles generally have higher premium rates compared to private vehicles.
3. Vehicle Age:
Older vehicles may attract lower premium rates as compared to newer ones. However, the difference is not as pronounced as it is with Comprehensive Insurance.
The zone in which your vehicle is registered also impacts the premium. Urban areas may attract higher premiums due to higher risk of accidents and claims.
Goods and Service Tax (GST) is also applicable to the premium rates, which will add to the total amount payable.
6. IRDAI Guidelines:
The Insurance Regulatory and Development Authority of India (IRDAI) sets the basic third-party premium rates. These rates are revised annually based on the claims experience, inflation, and other factors.
7. No Claim Bonus (NCB):
If you haven’t made any claims in the previous policy period, you may be eligible for a No Claim Bonus which can reduce the premium at the time of renewal.
8. Policy Terms:
The specific terms and conditions of the policy might also have a minor impact on the premium rates.
9. Legal Regulations:
Any changes in legal regulations pertaining to third-party insurance can also affect the premium rates.
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What All Is Covered Under A Third-Party Insurance Cover?
Although the third party car insurance cover holds a limited coverage, still it is crucial to cover for the below-mentioned coverage:
- Third Party Property Damage: All third-party property damage is covered under the third party only cover up to Rs.7.5 lakh.
- Third Party Death/Bodily Injury: Under a third-party plan, the insurer provides 100% compensation in case of death of a third party and 50% indemnification in case of partial blindness or loss of a limb. The compensation amount for third party liabilities is decided by a court of law.
What Is Not Covered Under Third Party Car Insurance?
Under a 3rd party car insurance policy, damage sustained by the insured vehicle or its driver/owner is covered. To get coverage for own damages to the insured vehicle, you can purchase a comprehensive car insurance policy which already includes third party liabilities or standalone own-damage car insurance along the TPPD insurance policy. Also, to insure yourself or the driver of your car you need to opt for a personal accident cover or paid driver cover, as the case may be.
Compare: Third-Party Insurance Vs Comprehensive Insurance
Here are some differences between a third party car insurance policy and a comprehensive car insurance policy:
|Basis||Third-Party Car Insurance||Comprehensive Car Insurance|
A 3rd party insurance policy provides compensation for bodily injuries or demise of a third party (as per the court of law) and property damages for upto Rs. 7.5 lakh.
Comprehensive car insurance policies offer compensation for damage caused to the insured vehicle as well as the injury/death of a third party. It also offers coverage up to a maximum cap of Rs 7.5 lakh in case of third party property damage.
|Add-ons||You cannot purchase an add-on cover along a third party insurance policy.||A number of add-on covers such as Zero Depreciation Cover, Consumables Cover, etc. are offered along with comprehensive car insurance policies against an extra premium.|
|Cost||Third party insurance is compared to cheaper to comprehensive policies due to its limited coverage.||Comprehensive plans are comparatively costlier due to extensive coverage.|
What are the Benefits of Buy/Renew Third Party Four Wheeler Insurance?
Apart from providing coverage from third party liability insurance that may arise during an accident involving your car below mentioned are some other benefits of purchasing this car insurance:
- Helps in Complying With the Laws: Third party car insurance (TPPD) policy is mandatory in India and if you are caught driving your car without or without a this policy, you can be penalized. Hence, having a third party insurance policy help you to comply with laws.With the help of this car insurance policy, you can drive your car legally without violating any traffic rule and save yourself from any type of fine or imprisonment.
- Peace of Mind: In case of a mishap there can be immense financial pressure on people. If a third party is involved it becomes even more cumbersome. With third party insurance, you can be assured these liabilities will be covered which ultimately boosts your morale and lets you drive more freely.
- Low Premium Amount: The third-party insurance is available at very low and affordable prices and proves to be extremely useful in times of crisis. Its reasonable rate is also an advantage of this car insurance policy which lets you find a good amount of coverage by investing a low amount.
- Cost-Effective Insurance Plan: The coverage provided to a policyholder under third-party liability insurance is cost-effective in regards to the cost and payable premium amount. Irrespective of the fact whether it has to be used as an important or as an add-on part of the basic insurance cover, it completely benefits the car owner. However, when calculating the compensation amount, the annual income of the car owner is considered.
- Simple, Seamless and Quick Insurance Buying Process: The buying procedure of third-party insurance is a very simple and swift process. Any person can easily purchase the third-party insurance cover online from the comfort of their home or any other place. Moreover, the policyholder can also choose to get their insurance plan renewed online easily by following the simple instructions laid by the insurance company or web insurance aggregator.
- Offers Financial Assistance against Legal Liabilities: Legal liabilities arising towards a third party property damage (TPPD) or person can be extremely financially draining and at times can even result in bankruptcy in case the vehicle owner is unable to pay for the damage or loss to the third party. This is when a third-party insurance plan comes to the aid as it offers the policyholder with much-needed financial assistance and helps them in paying off the third-party liability without robbing them of their savings.
How to Buy Third Party Car Insurance Online?
The following steps will guide you to purchase third party car insurance online:
Step 1: Visit our Website InsuranceDekho.
Step 2: In the ‘Get Your Quote’ section provide your car registration number. In case you do not have it you can also provide your car’s model, make and car’s registration year.
Step 3: Enter your personal details such as name and mobile number. All the quotes in your category will be visible on your screen.
Step 4: Select the policy that suits your needs and price point.
Step 5: Make the payment for the selected policy and the policy document will be sent to your email ID.
How to Get Cheap Third-Party Car Insurance?
Navigating the world of car insurance can be quite challenging, especially when you’re on the hunt for an affordable plan. Don't fret, though! Here are some practical tips that will guide you towards securing a cheap third-party car insurance policy.
1. Compare Various Policies
Before settling on an insurance policy, ensure that you’ve scoured the market thoroughly. Various insurance companies offer different rates. Make use of online comparison tools to evaluate the policies based on coverage, customer reviews, and premium amounts. Choosing wisely could save you a considerable amount of money.
2. Maintain a Clean Driving Record
Insurance companies often consider the driving history of the policyholder. Maintaining a clean record, free of traffic violations and accidents, can make you eligible for lower premium rates. It reflects that you’re less likely to be involved in incidents, thus posing a lower risk to the insurance company.
3. Opt for Voluntary Deductibles
Voluntary deductibles refer to the amount you agree to pay from your pocket in case of a claim. Opting for a higher voluntary deductible can lower your premium rates significantly. However, choose an amount that you can comfortably pay in unexpected situations.
4. Renew Your Policy on Time
Ensure that your policy is always up-to-date. Renew it before the expiration date to avoid any lapse. Insurance companies offer better rates to customers who maintain continuous coverage without any gaps.
5. Leverage No Claim Bonus (NCB)
No Claim Bonus is a discount that insurers offer if you don’t make any claims during the policy term. It can substantially reduce your premium amounts in the subsequent years. Try not to make small claims to benefit from the NCB.
6. Install Safety Devices
Installing safety and anti-theft devices in your car not only enhances the vehicle’s security but also makes you eligible for discounts on the premium amount. Make sure the devices are approved by the Automotive Research Association of India (ARAI).
7. Membership Discounts
Being a member of automobile associations such as the Automobile Association of India can make you eligible for special discounts on third-party insurance premiums.
8. Online Purchase
Buying insurance online can often be cheaper than purchasing it offline due to the lack of intermediary charges. It’s also more convenient, enabling you to buy a policy at the click of a button.
By implementing these strategies, you stand a good chance of securing a third-party car insurance policy that isn’t too heavy on the wallet but still provides necessary coverage. Remember, while finding a cheaper policy is essential, ensuring adequate coverage should be the priority.
How to Claim Third Party Car Insurance?
To get compensation for the mishap from the insurance provider the policyholder must follow the following steps:
- The policyholder must inform the insurance company about the incident and before the stipulated time mentioned. If claims are made after this time the insurance company can reject them.
- An FIR must be filed by the insurance holder reporting the incident at the closest police station and a copy of the same must be submitted to the insurance company at the time of filing the claim or during the process.
- The insurance holder must follow the due process and submit the required documents for completing the claim process.
- The insurance company will send a surveyor to check and assess the damage. After this, a report will be filed.
- The claim will be completed based on this report.
Points to Keep In Mind While Raising A Third Party Car Insurance Claim
Here are a few things which you should consider while making a third party claim:
1. The FIR should be lodged in the case of an accident, after which the insurance company should also be intimated about the event.Without these actions, the claim process may not release the required compensation.
2. The third-party should present the relevant evidence in order to prove the mistake of the other party.
3. It is always recommended to settle the minor damage and loss cases out of court since the procedure of registering an FIR as well as the court proceedings are time-consuming.
4. No limit is set on coverage of personal damages sustained by the third party liability insurance, while for the property damage, the maximum liability is limited up to Rs 7.5 lakhs.
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Disclaimer: InsuranceDekho does not endorse, rate or recommend any particular insurance company or insurance plan.
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Learn about Third Party Car Insurance
- A third party insurance policy is mandatory to be held by every car owner while driving on the road,
- Read this post if you want to understand the difference between first-party and third-party in car insurance.
- Guide on what is third-party insurance and what is its importance in car insurance.
- Is third party or comprehensive car insurance better? Let us find out.
- Read this post to learn how to purchase a third part car insurance online.
- Check this post to learn how to change a third party car insurance into comprehensive car insurance.
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Third Party Car Insurance FAQ
What is a third party car insurance?
A third party car insurance safeguards the policyholder against any damages or loss caused to the third party individual or third party property due to the insured car. As per the Indian Motor Tariff Act, it is mandatory for the car owners to at least get their car insured under at his plan.
What all is covered under a third party insurance?
All the car owners must get insured under third party insurance to get protection against third party property damage, third party loss of life, permanent and partial disability and bodily injuries.
Is a third party insurance plan mandatory for all the car owners?
Yes, as per Indian Motor Tariff Act, it is mandatory for all the car owners to at least get insured under a third party insurance plan in order to drive their vehicle on the public roads in India.
What is the process for getting third party insurance for my 10-year-old car?
To opt for a third party insurance for your old car, simply visit the InsuranceDekho website and choose the ‘car’ tab. Fill in all the required information like registration number of the car, model, variant, make and click on ‘submit’ thereafter. Select the insurance plan offered by different insurance companies. Then, after making the payment you will get your policy document at your registered email-ID.
Can I buy a zero depreciation add-on cover along with my third party car insurance plan?
No, you cannot purchase a zero depreciation add-on cover along with your third party insurance plan. The add-on covers offered by various insurance companies can be purchased only with a comprehensive insurance plan or standalone own damage car insurance plan.
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