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Third Party Insurance
Third-party car insurance only covers any legal liability arising from any damage or injuries to third-party property or people for which the insured vehicle/party is liable. Every vehicle got to have valid third-party liability insurance, which is a mandate as per the Motor Vehicles Act of 1988. Third-party insurance online is the simplest way of buying insurance.
What is Third Party Insurance?
The risk involved while driving a car on the road is always high, especially on Indian roads where traffic is at its peak. The third-party insurance policy enfolds the financial liabilities arising from the third party’s injuries, car damage, or accidental death; however, third-party insurance does not cover any liabilities that may emerge if the driver is drunk while driving the covered vehicle.
What is the Importance of Third Party Insurance?
Third-Party car insurance is mandatory for every car owner in India according to the Motor Vehicles Act, 1988. Not only does it reduce the stress while driving on the road, but it also saves the burden of financial risk in case of a mishappening. Let us look at some points that showcase the importance of third-party insurance.
Legal and Financial Cover
In times of catastrophe, having a legal and financial cover is much needed; that is where third-party insurance comes into. You won’t have to dwell on the damage because a third party will bear the cost.
Cost-efficient
Third-party insurance is cost-effective, as the premium is less than the comprehensive car insurance policy. So, you don’t have to dwell on the money.
Ease of Mind
Having third-party insurance makes it convenient for the policyholder, as the person need not worry about arranging the finances in a time of mishappening. The car insurance policy ensures financial protection against any unanticipated third-party liabilities.
Complete Legal Obligations
As the government of India has made it mandatory for a car owner to have third-party insurance, buying it will eradicate any legal complication.
Driving License
If a car owner has not bought the third-party insurance, the owner’s driving license can temporarily be suspended.
How Does the Third Party Work?
As previously stated, third-party insurance relieves the first party’s financial burden as a result of financial or legal claims brought by the third party.
- The owner of the insured vehicle is referred to as the first party.
- The third-party car insurance provider that will handle the claims settlement on behalf of the first party is referred to as the second party.
- The party making the compensation claim is referred to as a third party.
Benefits of Buying Third Party Insurance Online
Third-party car insurance online has many advantages. To understand them, we have listed some points for you.
01
Simple Process
Buying third-party car insurance online is now a simple and easy process. At your comfort, you can buy any third-party car insurance online at your home, and it saves a lot of time and money.
02
Convenient
Unlike a comprehensive car insurance plan, third-party vehicle insurance is free from complexity and is a basic car insurance policy. You may do it quickly and easily if you want to buy it online.
03
Low premium
Having third-party insurance means you will have to pay less. It means that it provides cover and saves a good amount of money.
04
PA Cover
PA coverage is required by law, so purchasing this coverage in conjunction with a Third-party liability plan is advised. It provides insurance coverage for the owner/driver up to Rs. 15 lakh in the event of death or permanent disability while driving.
05
Safety Net
Any misfortune can happen while driving on the road. Third-party vehicle insurance offers a safety net for you and your loved ones. The motor insurance provider will pay the compensation on behalf of the car owner.
Coverage Under a Third Party Insurance Policy?
3rd Party car insurance covers a limited coverage; however, it is still essential to cover the below-mentioned points.
Injuries Caused to a Third Party
A third-party insurance policy covers injuries caused by the insured vehicle to a third party. The insurer compensates for the injuries because the vehicle owner is liable for the injuries. The car insurance company will cover the costs of treatment.
Damages Done to a Third Party’s Vehicle
If the insured strikes a third party’s vehicle by accident, the cost of damages is covered under the third-party vehicle insurance policy. The car insurance company compensates for the damages on behalf of the owner of the covered car, reducing the financial burden.
The demise of the Third Party
Per the terms and conditions mentioned in the third-party car insurance, the car insurance company will compensate the third party’s family members if you hit the person leading to that person’s demise.
Property Damage
The car insurance coverage covers damage or loss caused by the covered vehicle. If the covered car collides with third-party property, the compensation will be paid by the insurance provider on behalf of the car owner.
Third Party Liability Insurance for Commercial Vehicles Coverage
A third-party car insurance for commercial vehicles provides coverage under the following circumstances:
- Covers the vehicle owner’s legal and financial responsibility if a business vehicle damages or causes bodily distress to a third party or their belongings.
- Includes the accidental death of the third party.
- Third-party property damage caused by an insured vehicle.
What is excluded from third-party insurance coverage?
Even though third-party car insurance is a complete insurance policy, it lacks thorough coverage, which we will discuss now.
Drunk Driving
If a driver is driving the vehicle under the influence of alcohol or drugs, no third-party liabilities will be covered.
Damages to one’s vehicle are not covered
The policyholder’s car will not be covered if it’s damaged because of an accident, natural calamities, or theft.
Invalid license
if you are driving with an invalid license in the eyes of the law, no third-party liabilities will be covered.
Unofficial Circumstances
If the insured car is involved in any racing, commercial activities, etc. then the third-party vehicle insurance company will not give any compensation.
Outside Geographical limit
Third-party damages will not be covered in the case of an accident outside the geographical location mentioned in the policy.
Expired Policy
If the insured is driving without renewing the third-party vehicle insurance, it won’t be covered.
Nuclear Perils
The 3rd party insurance policy does not cover third-party claims caused directly or indirectly by a nuclear weapon or radioactive effect.
War
Any loss or damages caused by war or invasion are not covered by third-party car insurance.
Comparison
Here is some distinctions between third-party car insurance and comprehensive car insurance:
Comprehensive Car Insurance vs Third Party Car Insurance
| Coverage Benefits | Third Party Car Insurance | Comprehensive Car Insurance |
|---|---|---|
| Own vehicle losses or damages in the event of a fire | Not Covered | Covered |
| Damages to Third-Party Property | Covered | Covered |
| Damages or loss to own car due to an accident | Not Covered | Covered |
| Own vehicle losses or damages in the event of natural calamity | Not Covered | Covered |
| Car Theft | Not Covered | Covered |
| Personal Accident Cover | Covered | Covered |
| Injuries or Death of a Third Person | Covered | Covered |
| Damages to Third-Party Vehicle | Covered | Covered |
Procedure to Calculate Third Party Car Insurance Premium Online?
You can get multiple car insurance quotes from various sources, but the most suitable way of getting it is from the car insurance calculator online. You can get the third-party car insurance price easily. InsureNow, brand name under Advance Life Insurance Brokers Pvt. Ltd, car Insurance Premium Calculator makes calculating your car insurance premiums simple. IRDAI sets 3rd party insurance premiums, which fluctuate depending on the vehicle’s engine capacity. Still, car insurance providers set standalone self-damage and comprehensive premiums, which vary from policyholder to policyholder. Just visit the InsureNow Car insurance premium calculator page to calculate the third-party car insurance price.
Below are the 3rd party insurance premium rates as per the IRDAI 1st June 2022
| Engine Capacity | Rates |
|---|---|
| Vehicles Less than 1000CC | INR 2094 |
| Vehicles from 1000CC to 1500CC | INR 3416 |
| Vehicles more than 1500CC | INR 7897 |
How to Buy a Third Party Car Insurance Policy Online?
There are many ways to buy third-party insurance online, but online is the most effective and efficient way. All you need to fill in a few details on the website. However, you must have some documents ready to buy the car insurance policy online.
Documents Required:
- Insurance Proposal form
- Registration Certificate
- Driving License
- Bill of the vehicle
- Valid Identity and Address Proof
These documents will help you buy third-party insurance online without any hiatus.
Why Choose InsureNow?
InsureNow allows you to receive all the information you need about the various car insurance policies offered by various insurers on one platform. Within minutes, you may evaluate plans, calculate premiums, purchase coverage, and even renew your policy on the website. The following are some benefits of using the InsureNow website:
Updated Listings
The website will provide you with the most up-to-date policy information. You can stay up to speed on market movements because the information is updated regularly.
To The Point Information
The listings on the website are relevant and can be sorted according to your specifications. It is a transparent system where the customer can access all the information. You’ll be able to see listings based on your preferences, allowing you to make the best decision possible to buy car insurance.
Quick Comparison
The website’s simple and intuitive interface allows you to compare car insurance policies in less time. You may easily compare plans from various insurers and select the best car insurance for you.
Customer-Centric
We believe in solving problems quickly; that is why we have a customer support staff trained to solve all your queries as quickly as possible.
In this way, InsureNow assists you in buying third-party insurance online in an easy way.
Best Third-Party Car Insurance Plans in India 2022
| Plan Name | Key Features | Cashless Garage |
|---|---|---|
| Digit Insurance |
|
5800+ |
| HDFC ERGO General Insurance |
|
7900+ |
| IFFCO TOKIO General Insurance |
|
4300+ |
| Reliance General Insurance |
|
5000+ |
| ROYALSUNDARAM ALLIANCE Insurance CO. Ltd. |
|
3300+ |
*Disclaimer: We InsureNow does not endorse any specific insurance company or insurance product offered by any insurer and this list is just an illustration of the plan offered by different general insurance companies Data has been fetched from IRDAI Annual Report FY 2020-21
Renewal Process of Third Party Car Insurance
It is critical to renew your third-party car insurance policy on time to reap its benefits. Driving your vehicle on the road without appropriate third-party liability insurance is also prohibited, and you may face penalties if you do so. As a result, renew your third-party car insurance coverage on time.
Documents Needed to Renew Third Party Car Insurance
Renewing a car insurance policy online is simple and can be done by comparing different third-party car insurance policies. We have listed the documents required for the renewal process to save time.
- Identity Proof like Pan Card, Aadhar card, etc.
- Driving license
- Address Proof
- A Recent Photograph
- Vehicle Registration Number
- Pollution Test
- A copy of RC
- Existing Car Insurance Policy Number
Claim Process for the Third Party Car Insurance
The claim process for third-party car insurance is hassle-free. Just follow some guidelines listed by the car insurance company.
Notify Motor Insurance Company
The first step is to inform the car insurance company about the accident. Once you do it, the car insurance company will arrange the pick up to the nearest garage. It’s important to share all the information with the insurer.
Lodge an FIR
After notifying the car insurance company, you must file an FIR and provide all the information. Keep the data of the FIR and the expenditures incurred to receive compensation.
Inspection by Insurer
The car insurance company will send a surveyor to inspect the damaged vehicle. The surveyor will make a report and submit it to the company.
Compensation
There is no cap on reimbursement when it comes to claims under third-party insurance. The insurer pays the MACT-determined compensation amount. However, in the case of property damage, the claim amount cannot exceed INR 7.5 lakhs.
Documents Needed to File a Claim under Third Party Insurance
When filing a third-party car insurance claim, you must provide the following documents:
- Claim Form(Duly Signed)
- Driving License
- Copy of FIR
- Registration Certificate
- Car Insurance Policy Papers
- ID Proof
- Copy of the MCR
Third-Party Insurance FAQ’s
Disclaimer: The information published in this article is for the reader′s reference only. This information provides an overview of your motor insurance needs and should not be relied upon for personal, medical, legal or financial decisions. You should consult an appropriate professional for specific advice. It makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or other items mentioned on this subject for any purpose whatsoever.