Third-party car insurance is a legal requirement under the Motor Vehicles Act, 1988 for all vehicles plying on Indian roads. This policy provides financial coverage against any legal liability caused to a third party due to an accident involving your car. Whether it’s death, injury, or significant property damage to a third party, your insurer compensates for the loss, shielding you from the financial burden.
Also referred to as an "Act Only" policy, third-party car insurance ensures that vehicle owners comply with Indian legal standards while protecting themselves from third-party liabilities.
Driving a car without valid third-party insurance is deemed illegal and can attract hefty penalties. This mandatory coverage not only ensures legal compliance but also safeguards third-party individuals or property from unforeseen incidents. It’s a simple, affordable policy designed to minimize your financial stress in case of accidents.
With the digital era, buying third-party car insurance has become more accessible. You can easily purchase it online through official websites or mobile apps of your preferred insurer, ensuring quick, hassle-free coverage within minutes.
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| Feature | Coverfox | Others |
|---|---|---|
| User Interface | Simple and user-friendly | Cluttered and overwhelming |
| Personalized Guidance | Smart, tailored recommendations | Broad, generic options |
| Claims Assistance | Dedicated and fast | Slower response times |
| Exclusive Discounts | Transparent and competitive | Limited and inconsistent |
| Free RSA | Included on select plans | Not always offered |
| Pricing Transparency | 100% transparent | May include hidden charges |
| Customer Support | 24/7, proactive service | Slower due to high volumes |
Choose Coverfox for a superior experience, personalized plans, and unbeatable benefits. With Coverfox, buying car insurance is not just a transaction – it's a smart, stress-free decision.
Legal Compliance: Stay on the right side of the law by meeting mandatory insurance requirements.
Affordable Premiums: Third-party insurance is budget-friendly, offering maximum legal protection without straining your finances.
Wide Coverage: Covers death, bodily injuries, or property damage to third parties, with a property damage limit of up to ₹7.5 lakhs.
Hassle-Free Online Process: Compare policies, get quotes, and purchase the best-suited policy online in just a few clicks.
Filing a third-party car insurance claim can feel overwhelming, but it doesn’t have to be. Follow this easy step-by-step guide to ensure your claim is processed smoothly and efficiently.
Ensure you have these documents ready for submission
After approval, the insurance provider compensates the third party directly for property damages or injuries as per the tribunal's verdict.
Delay in reporting the incident or filing a claim can result in rejection.
Ensure you have the following documents ready to expedite the process:
Simple and Fast Process: Coverfox offers a user-friendly platform to file claims without paperwork hassles.
Dedicated Claims Assistance: Our team helps you navigate the claims process step-by-step.
Expert Guidance: Get detailed insights on maximizing claim approval rates.
Third-party car insurance provides coverage against any property damages, physical injuries or death of third parties if the car owner is at fault. For example, bumping the insured car with another car on the road.
It covers third-party liabilities arising out of;
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Own Damage: Damages to your own vehicle during accidents.
Personal Injuries: Injuries sustained by the policyholder.
Driving Under Influence: Accidents caused while under the influence of alcohol or drugs.
Illegal Driving: Claims will be rejected if the driver does not hold a valid license.
For full coverage, consider upgrading to a comprehensive car insurance plan that protects your car from theft, vandalism, and accidents in addition to third-party liabilities.
For commercial vehicles insurance, third party liability insurance covers the following:
| Feature | Third-Party Car Insurance | Comprehensive Car Insurance |
|---|---|---|
| Premium Cost | Low premium, making it highly affordable. | Higher premium due to extensive coverage and benefits. |
| Coverage | Covers only third-party liabilities such as property damage, injuries, or death. | Covers third-party liabilities as well as damages to your vehicle caused by accidents, theft, fire, or natural disasters. |
| Legal Requirement | Mandatory as per the Motor Vehicles Act, 1988 for all vehicles. | Not mandatory but highly recommended for complete protection. |
| Damage to Own Vehicle | Not covered. | Fully covered for accidents, vandalism, theft, and more. |
| Add-On Covers | Not available. | Offers a wide range of add-ons like Zero Depreciation, Roadside Assistance, and Engine Protection. |
| Personal Accident Cover | Available as a separate cover. | Usually included or available as an optional add-on. |
| Ideal For | Owners looking for a budget-friendly option to meet legal requirements. | Owners seeking comprehensive protection for new or high-value vehicles. |
The Insurance Regulatory and Development Authority of India (IRDAI) revises third-party insurance premiums annually based on the engine capacity of vehicles. Here is the latest premium structure for private cars as of 2024:
| Vehicle Description | Revised Premium Rates (₹) |
|---|---|
| Engine capacity exceeding 1500cc | ₹8,416 |
| Engine capacity exceeding 1000cc but not exceeding 1500cc | ₹3,416 |
| Engine capacity not exceeding 1000cc | ₹2,094 |
While the rates above give you a general idea, your car’s model, manufacturing year, and add-ons may slightly influence the final premium. Use Coverfox’s Instant
Premium Calculator to:
Visit the Coverfox Website: Enter your vehicle details, including make, model, and year of registration.
No, third-party insurance covers damages caused to a third party's property or injuries to third-party individuals. For your vehicle's damages, you need a comprehensive insurance policy.
The timeline depends on the complexity of the case and tribunal decisions. Generally, it can take a few weeks to a few months.
Yes, you should file a claim as soon as possible, ideally within 48 hours of the incident, to avoid rejection.
No, you cannot customize a Third Party Car Insurance Coverage Policy.
Yes, the third party can file a case with the Motor Accident Claims Tribunal to claim compensation from your insurer.
Yes. As per the Indian Motor Vehicles Act, 1988, third party motor insurance is a mandatory component of your motor insurance. Even if you are good driver, you may end up in an accident due to no fault of your own. The offending driver is insured with the third party motor insurance allowing you to raise a claim for your losses.
In order to raise third party car insurance claim it is advised to have the following documents readily available.
When it comes to bodily injuries or death, there is no specific amount set for the compensation amount. However, in the case of third party property damage, the insurer would be accountable for a maximum amount of Rs. 7.5 lakhs.
You have a span of about 60 days from the date of the accident to file a case with the Motor Accidents Case Tribunal. However, the earlier you initiate the claim settlement process, the better it will be for you.
The cheapest third party car insurance in India is the same for all providers. This is because the Insurance Regulatory and Development Authority of India (IRDAI) sets the standard rates for third-party car insurance.
Third-party car insurance in India has the following limits:
The cost of third-party car insurance in India varies based on the engine capacity of your vehicle.
