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Third Party Car Insurance: Meaning, Premium, Benefits & How it Works?
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.
Know more about Compare Car Insurance.
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 |
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.
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! |
| Claim Settlements | 96% Claims Settled for Private Cars |
| 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/- |
Finding It Difficult to Choose Which Policy is the Best for You?
If you can’t decide whether to go for a third-party or comprehensive insurance policy for your car, we’ve got you covered. Check out the situations below that are the most relevant to you and plan accordingly.
Case 1: If you still have your grandfather’s car that you rarely take out for a drive - 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.
Case 2: If you own 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.
Case 3: If you want to buy a new car but your current car’s policy renewal is due - If you are planning on buying a new car and want to save on the insurance premium when your current car’s policy renewal needs to be done, make a smart choice by renewing your insurance policy with third-party coverage for your current car. This will save the premium and will keep you legally compliant. Later, you can sell this car before buying a new one.
Case 4: If you are an 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.
Case 5: If you bought home a 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.
Case 6: If you own a 5-year-old car that you drive daily - 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.
How to Claim for a Third Party Car Insurance?
- In case of an accident, the respective Third-Party must file an FIR and obtain a charge sheet.
- If there’s a compensation, we take care of it on your behalf. Just call us at 1800-103-4448.
- If there are no violation of terms, we will try for a non-monetary settlement on your behalf. If the situation arises, we will represent you in court.
- Most importantly, if you’ve been a good citizen and have admitted your fault for any kind of negligence, your Digit Third Party cover will still hold good.
- In case of a personal accident-related claim, all you need to do is call us at 1800-258-5956 and we’ll take care of the rest!
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.
What our customers have to say about us
Team Go Digit, Really appreciate your support and quick response. Actually my car was hit from behind by motorcycle. Rear bumper, trunk and tail light was broken. They quickly give response and things make easy cash less and paper less. Good job buddy.
Excellent service it was paperless claim register and settlements. Thank you, Mr.Aravind Reddy & team, for your support & quick response. Highly recommend Go digit Car insurance for their professionalism & commitment.
This is second time i renewed my car policy through digit. It was the digit executive Gokul Iyengar who made every effort to satisfy me and give the best offer. Hope I will get the same support and service throughout the year.
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.
Types of Car Insurance Plans in India
| Third-Party | Comprehensive |
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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Doorstep Pick-Up & Drop |
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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 |
Know more about the difference between comprehensive and third party insurance
FAQ's about Buying Third Party Car Insurance
What happens if I am caught driving without a valid third-party liability insurance policy?
If you are caught driving without a 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.
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.
Is third party car insurance mandatory?
Yes, having at least a Third Party car insurance policy is mandatory under the Motor Vehicles Act, 1988.
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.
Is Third Party Insurance enough for my car?
Hey, are you alright with paying for all the damages to your own car? You know that can cost you. Third Party, by definition, only covers the Third Party, i.e. the other people affected by your accident. A Comprehensive Policy protects damage that is not covered by Third-Party Cover. Read this article to understand the difference between Third party and Comprehensive car insurance.
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.
What is the maximum compensation offered as part of this policy?
In the case of personal damages to a third-party, there is no maximum compensation whereas in case of property or vehicle damages of a third-party, the maximum compensation amount available is up to Rs 7.5 lakhs.
What documents should I submit when raising 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.