Third party car insurance

third party insurance

What is third party car insurance policy?

A third party car insurance safeguards the policyholder against any loss or damages caused to the third party individual or third party property like car, truck etc. due to the insured car. As per the Indian Motor Tariff Act, it is mandatory for the vehicle owners to at least get their car insured under a third party insurance plan.

What is third party car insurance?

A Third-Party Liability car Insurance offers financial cover to the insured person against any legal liability arising due to loss or damage caused to a third-party person or property. As per the Indian Motor Vehicles Act, a third party liability cover is mandatory under law and a basic requirement under a car’s insurance policy.​ While choosing a vehicle insurance policy, people often get confused whether to opt for a comprehensive vehicle insurance policy or a third party car insurance policy. While a comprehensive car insurance policy offers overall protection against damages to your car as a result of incidents unrelated to accident or collision; a third party liability car insurance offers cover against any legal liability arising due to damages or injury caused by the insured to a third party.

What are the Benefits of Third Party Car Insurance?

Key FeaturesBenefits by Reliance General
Property Damages to Third PartyUpto 7.5 Lakh
Personal Accident CoverAvailable
Add OnsNot Available
Buying ProcessOnline via Smartphone in 5 minutes
Property Damages to Third PartyAs per MVA 1988

Third Party Car Insurance

How Does Third-Party Car Insurance Work?

In order to better understand the concept of third-party car insurance, let us look at some terminologies. For example, in the event of a car accident, the parties involved are as follows: 
First party: The insured person or policy holderSecond party: The insurance company Third party: The person who claims for the damages caused by the first party
In an event where an insured person with a third party insurance policy is held legally liable for injuries or damage done to a third party, then his/her insurance company indemnifies the insured person. Any losses arising due to damages or injury caused by the insured to a third party or third party’s property, are covered under the third-party insurance policy. In the event of a car accident, an insured person with a third party insurance policy is required to immediately inform the insurance company of the incident. If you were responsible for the accident (or the other driver believes you were responsible), it’s almost certain that a claim will be made against you, which your insurance company will be expected to pay. So, for the speedy resolution of the claim it is of utmost importance that  the insurance  company is intimated about the accidental claim at the earliest This is how a third-party motor insurance works.​​

 ​What Does a Third-Party Car Insurance Policy Cover? ​A third-party insurance of car covers for the expenses incurred due to the following reasons: 
Death or bodily injury to a third partyDamage to a Third-Party Vehicle because of the insured vehicleDamage to third-party property to an extent of Limit – Rs. 7.5 Lacs
Calculate your premium easily with our Car Insurance Calculator.

What Does a Third-Party Car Insurance Policy Not Cover? ​

When opting for a third party only car insurance policy, you must be aware of what benefits you’re missing out on. Let’s take a look at what third party car insurance does not cover: 

Cost of damages to a vehicle or the belongings in the vehicle in case of an accident​Cover for losses incurred if your car or belongings are stolen or destroyed Coverage against damages to your own vehicle 
It would be wiser to opt for third-party motor insurance if you own an old inexpensive car model, which is cheaper to repair.​ Has your car insurance expired? Click here for easy expired car insurance renewal online.

Advantages of a Third-Party Car Insurance

There are several advantages of third-party car insurance. Let’s look at the advantages that you will be eligible for in case you buy third-party car insurance: 

Enables You To Drive Legally 

Under the Motor Vehicles Amendment Act, 2019, it is necessary to insure your car if you want to drive on Indian roads. Getting basic third-party car insurance will protect you from hefty fines.

It Will Save You Time 

You can buy third-party car insurance online with just a few clicks. This will save you time and money as you can buy this plan from the comfort of your home. 

Coverage for Third-Party Person in case of Personal Damages 

In case of an unfortunate event like an accident where you hurt someone physically or in severe cases, cause the death of the third person. Your third-party car insurance will provide coverage for the losses up to unlimited liability**. In Note (** Compensation amount is decided/suggested by the court of law.)

Coverage for Third-Party Property or Vehicle Damages 

In case of an accident where it causes damage to one’s vehicle or property, your third-party car insurance will provide coverage  for the loss up to Rs 7,50,000/-. 

Protects you in case of any physical injuries 

In case you don’t have a personal accident cover, you can opt for it with your third-party car insurance. This way you can protect yourself and your family financially in the case of permanent disability or death due to an accident.

Protects you from Unexpected Losses

Indian roads are congested, and you can see several cars on the roads. So, an unfortunate event like an accident that is bound to happen. If you opt for a third-party car insurance policy, you don’t have to worry about the expenses that might incur in case of an unexpected accident loss. 

Disadvantages of a Third-Party Car Insurance

Nothing is perfect, not even your third-party car insurance as it comes with several disadvantages as well. Here is the look at the disadvantages that you might face if you buy third-party car insurance:

Doesn’t cover your own damages 

Your third-party car insurance will not provide coverage against the damages and losses to your own car. To protect your car financially, you need to opt for a separate comprehensive car insurance policy from reputable insurers. 

Doesn’t cover damages due to natural calamities 

No one can predict the future. Natural calamities such as floods, earthquakes, tsunami, etc. are some of the unfortunate events that no one has control on. In case your car is damaged due to a natural calamity, your third-party car insurance will not cover it. However, opting for comprehensive car insurance will surely protect you financially against the damage caused to your car due to both natural and man-made calamities. 

You can’t opt for add-ons 

There are several add-ons that enhance the coverage of your plan, but you can only opt for them in case you buy a comprehensive car insurance plan and not with third-party car insurance. 
 Get My Free Quote​ ​FAQ​

Why Buy Third Party Car Insurance From Reliance General Insurance?

With a Reliance General Third Party Only Car Insurance Policy, you will get the following benefits: 
Cover for causing accidental injury or death to the third-partyCover for accidental damage to the third party’s propertyEasy Claims with 98% Claim Settlement Ratio​

How to File a Claim for Third Party Car Insurance? 

Given below are the vital points that you need to consider in case of a third-party insurance claim:

In an unfortunate event like an accident, the third-party must file an FIR immediately after the accident takes place. You must retain a copy of the said FIR and the Charge sheet filed by the Police. On happening of an accident causing injuries to the third party, you need to inform the police and your insurance provider, without any delay and share the valid documents of the vehicle including the driving licence of the driver.In case of an accident, where you are not at fault or you have been impleaded in an accident, though not involved, file an FIR with the police against the person/s who have caused the accident or have impleaded you as a party to the case and defend the case in the court along with your insurer. 

In India, Motor Accident Claims Tribunal decides the claim for compensation amount to a third party. In case of personal injuries to a third-party, there is no upper limit, whereas, there is limited liability of insurance up to Rs 7.5 lakhs in the event of losses and damages caused to third-party property or vehicle depending on the involvement of the vehicle insured. A claims petition seeking compensation is filed by the third party before the concerned Motor Accident Claims Tribunal and the judicial proceedings start wherein the vehicle owner, driver and insurer is a party to the case.

If the damages and losses caused due to an accident are minor, then it is advisable to settle it outside the court as dealing with the court proceedings is a time-consuming process. 

When the matter is decided by the Tribunal and there no violation of the insurance policy and in case everything is in order, the compensation amount awarded by the Tribunal will be paid by your insurance provider to the third party.

Collect photographic evidence, if you can. This should include taking pictures of the accident site, pictures of the injury, damaged vehicle or property. This will also help the insurance company get a clear picture of the accident caused.

In case of a claim related to personal accidents, all you need to do is call customer care number and your insurer will take care of the rest. 
*T&C apply: The premium quoted is subject to change in case any alteration is made while generating the final quotation for premium. The premium quoted is subject to change in case any alteration is made while generating the final quotation for premium​. ​For more details on risk factors,​ ​terms conditions, brochure, and exclusions, please read the policy wording carefully before concluding a sale. Details mentioned here are for the product- “A​” Policy for Act Liability Insurance. UIN- IRDAN103RP0003V01200102​.

Popular Searches – ​​Car Insurance Online | Motor Insurance | Car Insurance Renewal Online | Third Party Car Insurance | Zero Depreciation Car Insurance | Compare Car Insurance Online | Car Insurance Premium Calculator | Car Insurance Quotes | Motor Insurance Renewal | Own Damage Car Insurance | Private Car Insurance | Four Wheeler Insurance