Third Party Car Insurance
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96% Claim

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Manasvi Gupta

Written By

Manasvi Gupta

Manasvi Gupta

Manasvi Gupta

Content Writer

Storyteller at heart, Manasvi brings 4 years of content and marketing experience to Digit. Whether it's writing SEO-optimised articles or a researched and insightful blog, she strives to transform ideas into creating impactful and engaging content.

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Reviewed by:

Mayur Kacholiya

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Mayur Kacholiya

Product Head - Motor

Mayur specializes in motor insurance and is responsible for overseeing the development and management of motor insurance products. With expertise in product strategy and market analysis, he focuses on developing customer-centric insurance solutions.

Third Party Car Insurance Policy: Buy Renew 3rd Party Car Insurance Online

Listen to the Summary

What is Third Party Car Insurance?

what is third party car insurance

What is Third Party Car Insurance?

Third-party car insurance, which is also called third party liability insurance, covers you against any liability which can happen in case of any loss or damage caused to any third-party vehicle, person or property. Unfortunately, it doesn’t cover your own vehicle damages.

A Third-Party Car Insurance is mandatory by the Motor Vehicles Act in India without which you will be liable for a heavy fine; whilst it also protects your pocket from any losses that could arise if your car were to damage any third-party vehicle, person or property. 

For example, if you accidentally damage another car’s headlights, your third-party car insurance will cover for the losses incurred to the third-party due to the same.

However, you can compare car insurance policies – comprehensive car insurance and Own Damage cover to get which suits you the most.

Important Statistics about Third-Party Car Insurance in India

Here are some important statistics about third-party car insurance in India:

1
Third-party insurance is mandatory for every car owner in India, which has led to a 14.44% increase in the third-party insurance premium in 2022-23. It grew to ₹49,508 crore from ₹43,260 crore in 2021-22.
2
As per the General Insurance Council of India 2021-22 Report, the number of car insurance third-party policies sold accounted for 26.8% of the total insurance market segment. 
3
While the share of incurred claims for third-party car insurance was 39.9%, the maximum among two-wheelers and commercial vehicles.

Why Customers Trust Digit Car Insurance?

stats

8 Lacs+

Claims Settled

3000 Crore+

Paid-in Claims

75 Lacs+

Cars Insured

1.2 Crore+

Policies Sold

96%

Claim Settlement Ratio

9000+

Cashless Garages

Disclaimer: The total number of claims settled, amount paid in claims and the total policies sold count is for private car policies since inception till 31st December-2024. 96% claims settled for Overall Motor line of business of Digit. CSR Is calculated for FY 24-25. CSR Ratio is count of (Claims paid + Claims Closed) / (Claims O/S at Start + Claims Reported - Claims O/S at End). 9000+ cashless garage network count as of 31st March-2025.

Key Features of Third Party Car Insurance by Digit

Key Features

Digit Benefit

Premium

Starting from ₹2,094/-

Buying Process

Smartphone-enabled process. Can be done in 5 minutes!

Personal Damages to Third-Party

Unlimited Liability

Property Damages to Third-Party

Up to 7.5 lakhs

Personal Accident Cover

Up to 15 lakhs

Personal Accident Cover Premium

₹220/-

What’s Covered in a Third Party Car Insurance?

Personal Damage to Third Party

Personal Damage to Third Party

For those unfortunate situations when your car causes any physical injuries and in the worst case, death to a third-party person. Your third-party car insurance covers for all the expenses and losses that may arise due to the same.

Property Damage Compensation

Damages to Third-Party Property/Vehicle

Everyone makes mistakes. This one covers for you if your car damages someone else’s vehicle, house or property up to 7.5 lakhs.

Personal Damage to Owner/Driver

Personal Accident Cover for Owner-Driver

If you don’t already have a Personal Accident Cover, this cover can be included in your Third-Party Car Insurance to protect you from losses that could arise if you are physically injured due to an accident.

What’s not Covered in Third Party Car Insurance?

It is equally important to know what’s not covered in your Third party car insurance policy so that there are no surprises when you make a claim. Here are some such situations:

Own Damages

In the case of a third-party car insurance policy, damages to your own car won’t be covered.

Drunk Driving or without a Licence

Your third-party car insurance won’t cover for you in situations where you were driving drunk or without a valid four-wheeler license.

Driving without a valid Driving Licence holder

If you hold a learner’s license and were driving without a valid driving license-holder in the front passenger seat - then your claim in those situations won’t be covered.

Types of Car Insurance Plans in India

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Third-Party

A Third-party car insurance is one of the most common types of car insurance; in which only damages & losses caused to a third-party person, vehicle or property are covered.
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Comprehensive

A Comprehensive car insurance is one of the most valuable types of car insurance that covers both third-party liabilities and damages to your own car as well.
standalone cover

Own Damage

An Own Damage Car Insurance is for yourself; it covers loss and damage only to your own car in case of accidents and collisions, natural calamities, fires, and thefts.

Third-Party

Comprehensive

Own Damage

×
×
×
×
×
×
×
×
×
×

How to Buy/Renew Third Party Car Insurance with Digit?

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Enter Car Details

On the Digit App or website, enter car registration number and select the policy status.

Choose a Plan

Select the type of car insurance plan and choose desired add-ons.

Enter Personal Details

Enter your personal, nominee and vehicle details, and move to the next step.

Make Payment

Complete the payment and mandatory KYC verification process.

That's It!

You’ll receive the policy document via email, SMS and WhatsApp. Also, you can access it 24X7 on the Digit App.

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Login

Login to Digit App or website and go to the ‘My Policy’ section.

Select Policy

Select the policy pending for renewal and click on ‘Renew Policy.’

Choose a Plan

Next, select the add-ons and tenure and confirm the details, and move to the next step.

Make Payment

Complete the payment and mandatory KYC verification process.

That's It!

You’ll receive the policy document via email, SMS and WhatsApp. Also, you can access it 24X7 on the Digit App.

Documents Required to Buy Third-Party Insurance Online

While buying a third party car insurance policy online from Digit, you don’t need a load of documents or paperwork. By having the following documents handy, you can easily buy a third party car insurance policy within minutes:

Car Registration Certificate

Previous year car insurance policy

Aadhaar Card

Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25

When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:

  • Smartphone-enabled self-inspection process, with which you can file your claim in minutes!

  • Cashless Claims at over 9000 garages in India, so you can get your two-wheeler fixed without stress. 

  • Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!

What Our Customers Have to Say about Us

4.7/5

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(250K + Customer Ratings)

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See All Reviews
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quote 6 Dec 2024
a great pleasure to be affiliated with you , Had met an accident and got the damaged parts replaced within a day after raising the claim . Thank You
user

Shaaz Suhail Salafi

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quote 13 Dec 2024
Very good service. Within two minutes I have renewed my car insurance online.
user

Ajay Bharade

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quote 13 Dec 2024
Dear For todays world If any One wants to open a fresh Vehicle Insurance Policy which has all the transparency users frndly Plus the staff is very cooperative hats off. Wishing God bless for all yr future Endeavor 's. Sr Citizen-Policy-Investor
user

DinShaw Sahukar

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quote 20 Dec 2024
Quick reaction on Road side assistance and continuous follow up till resolution. Happy with assistance in late night hours.
user

Abhishek Sharma

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quote 13 Aug 2024
I had issue with the motor insurance policy and wanted to upgrade it. The customer care executive had enough patients to explain me everything point to point. Thanks a lot Sudip.
user

Pratheesh R

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Things to Consider When Making a Third-Party Car Insurance Claim

Things to Consider When Making a Third-Party Car Insurance Claim

  • In case of an accident, the respective third-party must file an FIR at the time of damage - post which the insurance company must be notified as well. Without this, the required compensation can’t be made. 
  • In an accident, it’s important that the third-party has viable evidence to prove the fault of the opposition party. 
  • In case of minor damages and losses, it’s always advised to try and settle them out of court since the process of filing a FIR and dealing with the Motor Vehicle Tribunal is often time-consuming.
  • As per the rules and regulations of the IRDAI, it is up to the Motor Accident Claims Tribunal to decide on the claim amount. While there’s no upper limit on personal damages to a third-party, there is a limited liability of up to Rs 7.5 lakhs in case of damages and losses caused to a third-party vehicle or property.

Third Party Premium for Old Four-Wheelers

Unlike a Comprehensive Car Insurance Premium Calculator, a Third-Party Car Insurance Premium Calculator is only dependent on your engine cc and the respective premiums are predetermined by the IRDAI

Private cars with engine capacity

Premium rate (effective 1st June 2022)

Not exceeding 1000cc

₹2,094

Exceeding 1000cc but not exceeding 1500cc

₹3,416

Exceeding 1500cc

₹7,897

Third Party Premium for New Four-Wheelers (3-year Single Premium policy)

Private cars with engine capacity

Premium rate (effective 1st June 2022)

Not exceeding 1000cc

₹6,521

Exceeding 1000cc but not exceeding 1500cc

₹10,640

Exceeding 1500cc

₹24,596

Premiums for New Electric Vehicle (EV) Four-Wheeler (3–year Single Premium policy)

Vehicle kilowatt capacity (KW)

Premium rate (effective 1st June 2022)

Not exceeding 30KW

₹5,543

Exceeding 30KW but not exceeding 65KW

₹9,044

Exceeding 65KW

₹20,907

Advantages of a Third Party Car Insurance

Saves Time & Effort

Thanks to technology, buying a third-party car insurance online will take you barely a few minutes. All you need is your basic car details (car registration number/car make and model) and id proof (Aadhar/PAN) and your policy will be emailed to you!  

Covers Third-Party Person in case of Personal Damages

In an unfortunate case where while driving, you get into an accident and hurt someone physically, or in the worst case- cause one’s death. In this case, your third-party car insurance covers the losses of the same, up to unlimited liability. 

Covers for Third-Party Property or Vehicle Damages

In the case where you damage one’s property or vehicle, your third-party car insurance will cover for their losses, up to 7.5 lakhs! 

Protects you in case of any physical injuries

In case you don’t already have a personal accident cover from any other policy (such as your health insurance), a third-party car insurance lets you opt for the same so you can protect yourself too in case you get into an accident that leads to permanent disability or death. 

Protects you from Unexpected Losses

With so many cars on the road, and the amount of traffic- mistakes tend to happen. In times when you’re at fault and your car hurts someone or their vehicle/property- the expenses to pay for damages will be covered by your third-party car insurance policy so you don’t have to bear unexpected losses. 

Enables you to drive legally

As per the Motor Vehicles Act, every car owner should at least have a third-party car insurance. If you’d like to protect your car further, you can also go for a Comprehensive Car Insurance Policy, which includes coverage for third-party liabilities and protection for your own car. 

Protects you from traffic penalties and fines

If you’re found on the road without at least a third-party car insurance, you will be liable for a fine of Rs 2,000 and/or up to three months in prison. 

Disadvantages of a Third Party Car Insurance

Doesn’t Cover Own Damages

Unfortunately, a third-party car insurance will not cover for damages and losses to your own car.  

Doesn’t Cover for Natural Calamities

A third-party car insurance won’t cover for damages to your four-wheeler in case of any natural calamities.

No Customized Plans

A third-party car insurance is the most basic plan available for your four-wheeler and cannot be customized further with additional benefits and covers. However, you can do so with a comprehensive car insurance.

Which Car Insurance Policy is the Best for You?

Family Heirloom Owner

Owner of Two Cars

Wants to Renew old car and then switch to new one

Experienced driver

Brought home new luxury car

Drives 5-year-old car

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Ashok, 45 Years Old Male (Family Heirloom Owner)

A rarely driven antique car may drive lots of attention, but it may also attract fines and penalties if you do not insure it with a third-party insurance policy, as it is mandatory by law.

Thus, a third-party insurance cover is a must for such car owners—to save on the premium and to be legally compliant, as such a car is preserved mainly for memories or displaying and not for driving.

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Sidharth, 34 Years Old Male (Owner of Two Cars)

If you have 2 cars and use only one of them mostly, while the second one you use hardly in a month, then you can get the second one insured with a third-party cover to save on the premium and to be legally compliant. 
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Megha, 30 Years Old Female (Wants to Renew old car and then switch to new one.)

People keep some things solely for the emotional value attached to them like that car in your family for generations, which is rarely driven but still requires to be insured via at least a third-party coverage policy as per legal requirements. Since you do not drive that car around, you can skip purchasing other add-ons.
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Rakesh, 38 Years Old Male (Experienced driver)

If you have a clean car driving record and are experienced, you may believe in your driving skills but can’t expect the same from others, so there’s always a risk of accidents. In such a case, it is better to go for a comprehensive policy as it covers own damage as well. However, you can always choose to reduce your premium by letting go of the add-on covers. 
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Sobha, 31 Years Old Female (Brought home new luxury car)

Go straight for the comprehensive car insurance to enhance the protection cover for your brand-new expensive car. It will cover your car for both third party liability and own damage. You can also get appropriate add-on covers to maximise the coverage and protect your car in all situations.
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Jitesh, 28 Years Old Male (Drives 5-year-old car)

A daily-driven car must be protected with the maximum coverage to ensure your safety. So, in this situation, it is better to go for the comprehensive policy as it will cover the third-party policy and protect your car in case of accidents, theft, fire, natural calamities, etc.

With a comprehensive policy, you can also purchase add-ons like Roadside Assistance add-on cover to remain protected against car breakdowns, flat tyre or towing when driving daily.

Note: These are just a few scenarios to help you easily understand the different policy covers. Please discuss with your insurer and advisor about the best policy for you. Remember to not take it as a recommendation from Digit.

FAQs about Third Party Car Insurance

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