What is Third Party Insurance

Third Party Car Insurance is part of the Indian Motor law. You can’t avoid it. Turns out you can’t understand it either. But that’s what we’re here for. To make insurance and everything that surrounds it easier for you. Almost as easy as it is to get answers to peculiar questions on Google. At least that's what we’re hoping for! 😉 Also, according to the Motor Vehicles Act, every car in India at least needs to be able to drive on Indian roads legally.

A Third-Party Car Insurance policy is to the cars what helmets are to bikers and passports are to international travelers - you simply can’t do without it. It goes beyond the law. It’s illegal and you will likely get into trouble if you don’t have it.

A car insurance third party policy basically covers all expenses that arise in cases where you (of course, while driving!) happen to damage any third-party. Whether that’s a third-party property, person or even another vehicle itself.

So, whether you want to be the good chap in the eyes of law or, want to protect yourself from unplanned, highly possible and super unfortunate expenses, then you essentially require an insurance that covers for third-party damages and losses, i.e. a Third-Party Car Insurance.

Our two cents?

Although a 3rd party car insurance policy serves the legal purpose, it’s still not enough. Now, we know how much you love your car- so here’s a little bit of an insider insight here- we almost always recommend a Comprehensive Car Insurance Policy cause it not only covers for the law and third-party damages but also covers for losses and damages caused to your own car!

We’re like the GenZ of today. We’re tech savvy. We hate paperwork. We love our mobile phones to death and we sure as hell love completing our work in a nick of time. So, making a claim with us isn’t that much of a hassle. So, in case there is an accident and if you have damaged someone else’s vehicle, or property, here’s how you can file a car accident insurance claim and settle the matter within minutes:

• The third party needs to lodge a FIR at the local police station.
• You need to share a copy of your car insurance policy with the third-party, so that they can raise a car insurance claim under it.
• All third-party liability claims are settled in a Motor Accident Claims Tribunal (MACT), so the third party must file a case at the local tribunal.

The following documents will have to be submitted for a Third-party car insurance claim:

• Duly filled and signed claim form
• A copy of the FIR
• A copy of your valid Driving License
• A copy of the first 2 pages of your policy document
• A copy of your vehicle's RC

Guess what? We love claims, and contrary to what people say about the insurance guys, we don’t really live up to all those vague stereotypes and generalizations. We’re nice. Period. We know humility is a thing, but we’re just being honest here 😉 You’re pretty much a friend to us, and what do we do for our friends. Everything that we can do in our capacity.

• If you ever meet with an accident and you claim for third-party car insurance with us, we take care of any legal responsibilities arising out of that. That includes advocates, investigations and any verification.
• If there’s compensation, we take care of it on your behalf as your third-party car insurance policy comes with unlimited liability cover.
• If there is no violation of terms, we will try for a non-monetary settlement on your behalf. If the situation arises, Digit Insurance 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.
• Also, just by the way, you do not lose your NCB, the ncb in car insurance, when you claim under the Third-Party Insurance part of you car insurance policy (if you have Comprehensive Car Insurance).

Remember the following things before buying four-wheeler insurance third party:

• Unlike a Comprehensive Car Insurance Premium Calculator, third-party car insurance premium is only dependent on the car’s engine cc and the respective premiums are predetermined by the IRDAI.
• 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 the case of minor damage 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 IRDAI, it is up to the Motor Accident Claims Tribunal to decide on the claim amount. While there’s no upper limit on personal damage to a third party, there is a limited liability of up to ₹7.5 lakhs in case of damage and losses caused to a third-party vehicle or property.