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Third Party Car Insurance Policy: Buy Renew 3rd Party Car Insurance Online
Looking for a smart way to stay protected on the road? Digit’s Third Party Car Insurance is designed to cover legal liabilities arising from accidental damage or injury caused to a third party by your vehicle. With IRDAI-approved premium rates, it’s a dependable choice for responsible drivers who want essential coverage that’s affordable and keeps them legally compliant. Whether you're buying a new policy or renewing an existing one, Digit’s digital-first process ensures you’re insured in just a few minutes—anytime, anywhere.
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 car insurance cover to get which suits you the most.
Reasons to Buy Third-Party Car Insurance
Car insurance is not just a legal requirement; it is a critical financial safeguard for vehicle owners in India. Here are the key reasons why securing a car insurance policy is indispensable:
Whether you go for a third-party car insurance or comprehensive car insurance, having car insurance can benefit you by saving you from paying huge amounts in case of damages and losses caused during an accident, a natural calamity, fire, theft and other such unforeseen circumstances.
Accidents happen to everyone. In case you end up in a situation where you’ve accidentally hit someone, a car or someone’s property, your car insurance will be there for you to cover the damages and losses incurred to the third party, so you don’t need to spend hours arguing or fighting over it!
If you opt for comprehensive car insurance, you can benefit further by getting better coverage for your car using add-ons like the zero-depreciation cover, return to invoice cover, consumables cover, and breakdown assistance, amongst others.
As per the Motor Vehicles Act, all cars must have at least third-party car insurance. Without one, you will be liable to pay a penalty of ₹2,000 for the first offence and ₹4,000 for the second time.
With Digit, technology makes everything a breeze. From buying car insurance to making claims, it’s all done online in just a few minutes, saving you both time and money. Our process is so straightforward, it’ll have you saying, "That's it?"
What’s Covered in a Third Party Car Insurance?
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:
In the case of a third-party car insurance policy, damages to your own car won’t be covered.
Your third-party car insurance won’t cover for you in situations where you were driving drunk or without a valid four-wheeler license.
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.
Why Choose Third Party Car Insurance by Digit?
Key Features of Third Party Car Insurance by Digit
Types of Car Insurance Plans by Digit
Difference Between Third-Party vs Comprehensive vs Own Damage Policy11
| Third-Party | Comprehensive | Own Damage |
Damages/Losses to own car due to an accident |
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Damages/Losses to own car in case of fire |
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Damages/Losses to own car in case of a natural calamity |
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Damages to Third-Party Vehicle |
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Damages to Third-Party Property |
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Personal Accident Cover |
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Injuries/Death of a Third-Party Person |
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Theft of your car |
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Customize your IDV |
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Extra protection with customized add-ons |
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| Get Quote | Get Quote | Get Quote |
Know more about the difference between comprehensive and third party insurance
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.
Third Party Car Insurance 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 Car Insurance 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 |
Third Party Car Insurance Premium for New Electric Vehicle EVs (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 |
How to File a Third-Party Car Insurance Claim?
- In the event of an accident, it is crucial to inform the police and call us at 1800-258-5956 for guidance on how to proceed with the claim, as delays can affect your claim eligibility.
- The third-party must file an FIR and provide suitable evidence to support the claim.
- The Motor Accident Claims Tribunal determines the compensation amount. While there is no upper limit for personal injury or death, compensation for property damage is capped at ₹7.5 lakhs.
- Once the claim is filed, please notify the respective Nodal Officer, whose contact details are available here.
- If compensation is awarded, the insurer will handle the payment on your behalf, offering peace of mind during a stressful time.
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.
Digit Settled a Third-Party Claim Worth ₹1.5 Crores in Raipur, Chhattisgarh
Advantages of a Third Party Car Insurance
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!
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.
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!
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.
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.
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.
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
Unfortunately, a third-party car insurance will not cover for damages and losses to your own car.
A third-party car insurance won’t cover for damages to your four-wheeler in case of any natural calamities.
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.
FAQs about Third Party Car Insurance
What is third-party insurance?
A car insurance policy that only covers injuries/damage caused to others in an accident, due to your car, is considered third-party insurance.
Why should I get a third-party car insurance policy?
The main advantage of getting a third-party policy is that it covers third-party liabilities. Moreover, it makes you comply with the laws.
What happens if I am caught driving without a valid third-party liability insurance policy?
If you are caught driving without valid third-party liability insurance, you will be liable to pay a fine of Rs 2,000. Additionally, your license may also be disqualified, and/or there may be imprisonment charged for up to 3-months.
What if someone else was driving my car during the time of accident, will Digit cover for my losses?
Yes, irrespective of whoever was driving the car at the time of the accident, Digit Insurance will cover your losses. But if the driver didn’t possess a valid license or had a learning license but was driving without a license holder on the co-driver’s seat, they won’t be covered, and your claim can be nullified.
Can I buy 2 third-party car insurance policies?
Though you can legally buy two third-party car insurance policies from two different insurance companies for the same car, you may violate the terms of one or both insurance companies.
Is third party car insurance mandatory?
Yes, having at least a Third-Party car insurance policy is mandatory in India under the Motor Vehicles Act, 1988.
Is third party insurance automatically transferred to the new owner?
No, third party car insurance needs to be transferred to the new owner when selling a car. Else, they won't be covered.
What if I don’t have third-party insurance?
If you get in an accident without having third-party insurance, you might be legally liable to pay for the damage yourself and also be penalized under law.
Is third party insurance enough for my car?
If you only want to cover damage or losses to a third party due to your vehicle then a third-party policy is enough for your car.
Which is better among third party and comprehensive car insurance?
A comprehensive policy is better than a third-party policy as it provides complete coverage against both your own damage and third-party liabilities.
What happens if I meet with an accident in a different city/state?
Digit Insurance has you covered irrespective of which city or state the incident happens.
I have a good driving and clean claim record. Do I still need a third-party policy to drive my car?
Yes, all car owners in India are required to have at least a third-party policy as it is mandatory by law.
What does third-party car insurance cover?
Third-party insurance covers injuries or damage you cause to third-party people or property in an accident, but not your own car.
Where can I purchase a Third-party Liability car insurance online?
You can buy third party insurance online from Digit, either via our website or app by following some simple steps. You won’t need any documents and your car will be insured instantly online.
Who can get 3rd party car insurance in India?
Any car owner in India who has registered their vehicle with the RTA i.e. Regional Transport Authority in India, can buy third-party insurance.
What is the sum insured in third-party insurance policy?
There is no concept of "sum insured" in third-party insurance as it covers liability for damage caused to others, not your own car.
Is the service tax applied on third party insurance?
Yes, Goods and Services Tax (GST), which has replaced the service tax in India is applicable on third-party car insurance premium.
What is the cost of premium for third-party car insurance?
The third-party car insurance premium price depends on the cubic capacity (cc) of your car’s engine. This amount is already fixed by the IRDAI.
Can I purchase roadside assistance add-on with a Third-party car insurance policy?
No, add-ons are not available with a Third-party car insurance policy. You can get add-ons only with a Comprehensive car policy.
Can I buy zero depreciation add-on with my third-party policy?
No, zero depreciation add-on cover is not available with third-party policy. To avail the zero-depreciation cover, you have to get a comprehensive car insurance policy.
What is the cost of third-party insurance?
Third-party policy is the cheapest insurance option as it offers less coverage. Its price depends on your car's engine size, location, and your driving record.
Does a Third-party plan offer sufficient coverage?
A third-party car insurance covers only damage or loss to a third-party. If you want enhanced coverage, then you should buy a Comprehensive car insurance policy.
What is the validity of a third-party car insurance policy?
A third-party policy is generally valid for one year in India. However, when buying a new policy for a new car, you need to get a three-year third-party policy, as it is mandatory by law.
Will my third-party insurance policy continue if I sell my car?
No, if you sell your car, you have to either cancel your existing insurance or transfer it to the new owner. In both cases, you need to submit the required documents.
Can I convert my comprehensive car insurance policy to a third-party policy?
Yes, you can switch your car insurance policies at the time of policy renewal.
Does my car’s model affect my third-party policy?
Yes, the model of your car is considered when calculating the premium for third-party insurance.
What is the difference between TP and OD insurance policies?
TP stands for Third-Party. It is the insurance policy that covers other people and property. While OD stands for Own Damage; it covers your car.
What is a 5-year third-party insurance?
In a 5-year third-party insurance, you get third-party liability coverage for 5 years and Own-Damage coverage for 1 year.
What is 3-year third-party insurance?
A 3-year third party car insurance is a long-term plan that doesn’t require yearly renewals.
Where can I purchase online Third-party Liability car insurance policy?
You can buy a Third-party policy online through Digit website and app, by following 4 simple steps.
If you claim for a third-party car insurance, will you lose your NCB?
No, you won’t. Your NCB or No Claim Bonus remains intact.
What documents should I submit when filing a claim for a third-party car insurance online?
You don’t personally need any documents in the case of a third-party car insurance claim unless asked for. In case of a third-party claim, the respective third-party needs to file a FIR charge sheet if he/she wants to be compensated for losses and damages.
Do I need to file FIR in case of a third-party insurance claim?
Yes, FIR is an important document required when filing a claim against third-party liabilities.
What is the maximum compensation offered as part of this policy?
In the case of personal damage to a third party, there is no maximum compensation whereas in the case of property or vehicle damage to a third party, the maximum compensation amount available is up to ₹7.5 lakhs.
What is the period to file a claim under third-party insurance plan?
Ideally you should file a third-party claim at the earliest to avoid claim rejection. However, the maximum limit is 60 days after the accident.
Can I renew a Third-party car insurance policy online if I had purchased it offline?
Yes, you can renew a Third-party car insurance policy online no matter if you have purchased it offline by providing your policy number, its expiry date and other details as required.
Where can I find the detailed Policy Wordings of the Third-party policy?
You can check the policy wordings on the policy document when you purchase your insurance. You can also find it on the insurer's website.
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