Welcome to the hassle-free way of securing your vehicle with the "Buy Cheapest Third Party Car Insurance Online" service. We understand the importance of protecting your car without breaking the bank. With our user-friendly platform, you can easily compare quotes and find the most affordable third-party car insurance plans, ensuring you drive with confidence while saving your hard-earned money. Experience the convenience of securing coverage online and enjoy the peace of mind of knowing your car is protected at the best possible price.
Third Party Car insurance is an essential financial safeguard that provides protection against potential risks and liabilities associated with owning and operating a vehicle. It plays a crucial role in ensuring the financial security of both the driver and third parties involved in an accident. Here are some key reasons why car insurance is of utmost importance:
- Financial Protection
- Legal Compliance
- Third-Party Liability Coverage
- Peace of Mind
- Protection Against Uninsured/Underinsured Drivers
- Coverage for Theft and Vandalism.
What is Third Party Car Insurance?
Third-party car insurance is a type of auto insurance that covers the policyholder against liabilities arising from injuries or damages caused to third parties involved in an accident. It is the minimum legal requirement in many countries, and its primary focus is to protect others rather than the policyholder's own vehicle. The coverage typically includes:
- Bodily Injury Liability: This covers medical expenses, rehabilitation, and legal costs related to injuries sustained by other people in an accident for which the policyholder is at fault.
- Property Damage Liability: This covers the repair or replacement costs of third-party property, such as vehicles, buildings, fences, or other structures damaged in an accident caused by the policyholder.
Advantages:-
- Cost Savings
- Convenience
- Easy Comparison
- Financial benefit
- Legal protection
- Quick Processing
- 24/7 Availability
- Digital Documentation
- Customer Reviews and Ratings.
Why Third Party Car Insurance is Important for Every Car Owner?
Third Party car insurance is the only insurance made mandatory by Indian Law. It is a legal requirement under the Motor Vehicles Act, 1988 for any car owner or driver to drive their vehicle on a public road. The main purpose of the third Party Car Insurance is to provide financial and legal protection to the policyholder in case of an accident causing physical injury, death, or disability to the third party or damage to third-party properties.
Third-party car insurance is the basic insurance that is compulsory for every car owner to hold while driving. It gives coverage to third parties for the damages caused due to an accident with the insured car. In addition, being a mandatory cover, it delivers legal compliance as well along with coverage. The third party car insurance gives you coverage from financial liability in case your vehicle was involved in any accidents that might have caused damages to life, limb, other vehicles, or property. This type of car insurance is also known as 'act only cover.
What is Covered under Third Party Car Insurance?
- Third Party Liabilities: Any injuries or damages caused to a third party are covered.
- Third Party Property Damages: Any damages caused to a third party’s property due to your car in an accident are covered. However, the coverage limit is 7.5 lakhs.
- Third Party Car Damages: Any damage caused by your car to a third party’s vehicle is covered.
- Personal Accident Coverage: A few companies provide compensation in case your car accident results in your disability or death. The cover amount in case of death can be up to 15 lakhs.
- Accidental Death Coverage: Compensation is provided in case you accidentally run over your car on a person causing fatalities leading to the victim’s death.
- Bodily Injuries Due To Accident: Any disability caused by you to a third party due to an accident is covered. However, only 50% of the compensation is paid in case the third party person suffers from partial blindness or loss of a limb.
How Third Party Car Insurance Works?
In order to better understand the concept of third-party car insurance, For example, in the event of a car accident, the parties involved are as follows:
- First party: The insured person or policyholder
- Second party: The insurance company
- Third party: The person who claims the damages caused by the first party.
Third-party car insurance works by providing coverage for liabilities that arise when the policyholder is involved in an accident that causes injuries or damages to third parties (other people or property). It is designed to protect the policyholder from the financial consequences of such accidents and ensure that the affected third parties receive compensation for their losses. Here is how third-party car insurance works:
- Policy Purchase
- Coverage Scope: Once the policy is active, it provides coverage for two main aspects:
- Bodily Injury Liability
- Property Damage Liability
- Accident Occurrence
- Claim Process
- Settlement and Compensation
- Exclusions
- Renewal
- Legal Compliance.
Exclusions:
- Liabilities, losses, or damages to the third party that were due to any consequential losses
- Claims resulting out of policy contractual liability.
- Claims resulting out of using the car outside the 'limitations as to use' terms or clauses.
- Accidental liabilities, losses, or damages that you bear outside your policy's geographical area.
- Liabilities, losses, or damages due to war, war-related operations, or invasions.
- Liabilities, losses, or damages due to nuclear weapons or radioactive weaponry.
- When someone else drove the car who is not the car owner & policyholder.
Third-Party Car Insurance Premium:
The IRDAI takes premium amount decisions for third party car insurance. When it comes to comprehensive car insurance, your insurers consider many things before deciding the premium amount. However, the third-party car insurance price depends only on the cc of your car. The IRDAI has determined a fixed cost depending on the engine capacity of your motor vehicle.
The car insurance cost of third party premiums is decided by the IRDA and is constant for all the insurance companies. Third party premium changes with the cubic capacity and the age of the vehicle. Third party premium rates are decided by IRDA and are subject to change each year depending on the previous year's premium collected, claims settled, and many other factors. Car insurance rates would increase if your car were fitted with the Bi-fuel system and other electrical and nonelectrical accessories. Both the own damage and third party premiums would be increased in this case.
1. Compulsory TP: The Motor Vehicles Act, 2019 has made it mandatory for the owner of the car to have at least a third party insurance if not the comprehensive insurance cover. The fine for not having the compulsory third party car insurance is up to Rs.5000/- and/or imprisonment of up to 3 months. There are three slabs for the third party car insurance premium depending on the cubic capacity of the car. The highest premium to be paid for a car would typically not be more than Rs.10k which provides coverage for a year. Having a Third party insurance can save your hard-earned money from being paid as a fine and prevent you from imprisonment.
2. Death and Disability Claim: The death and disability accidental claims are covered under the third party car insurance policy. In general the third party claims are to be reported to the insurance companies and will be settled by the honorable courts. The amount of compensation to be paid by the insurance companies to the kin of the deceased is decided by the honorable courts after taking many factors into consideration. These factors include the earning capacity of the deceased and other factors such as the age of the deceased etc.
In the absence of the third party car insurance policy, the compensation awarded by the honorable courts for third party death and disability claims should be settled from your own pocket. There can be instances where the courts action your property to settle the third party claims in the absence of valid third party insurance.
3. Property damage claims: The third party property damage due to your car is covered under the third party car insurance policy. The Third party property damage is covered up to Rs.7.5Lacs under the third party car insurance. The limit under this section can also be restricted to Rs.6000 for a decrease in the overall premium to be paid under your third party car insurance policy.
4. Personal accident cover for owner/driver: Personal accident cover for owner/driver is mandatory for a sum insured of Rs.15 Lacs to be taken under the compulsory third party car insurance policy. The personal accident cover for the owner/driver covers the claims due to the death or disability of the owner/driver at the time of accident whilst driving the insured vehicle.
5. Need for Third party car insurance: The need for a valid third party car insurance has increased these days due to the increasing road accidents resulting in the loss of lives of the passengers. A third party car insurance death claim may result in the loss of more than one life and the claim amount may run up to several Lacs in some instances where the car owner/driver might not be able to pay without the help of the insurance company.
| Engine Capacity of the Car |
Premium Rate |
| Below 1000 cc |
INR 2,072 |
| Between 100cc to 1500cc |
INR 3,221 |
| Above 1500cc |
INR 7, 890 |
Third Party Car Insurance vs Comprehensive Car Insurance:
| Parameters |
Third Party Car Insurance |
Comprehensive Car Insurance |
| Coverage |
A 3rd party insurance offers financial protection to you against damages caused to a third-party vehicle or property or the death or injury of a third-party person. |
A comprehensive car insurance policy protects your insured car against own-damage and covers third-party damages to a vehicle or property and the death or injury of a third-party person. |
| Cost |
Since third party insurance coverage is limited only to third-party damages, it is easily affordable when compared to a comprehensive car insurance policy. |
The coverage provided by a comprehensive policy is extensive, and hence, it is costlier than third party policy. |
| Add-ons |
A third party car policy coverage cannot be enhanced with add-ons and other such benefits since the policy is only meant for covering third-party losses. |
For an extra premium, you can enhance your comprehensive cover with add-ons such as Zero Depreciation, Roadside Assistance, etc. |
| Suitability |
Third-party insurance is suitable for individuals on a tight budget or those with older vehicles whose repair costs may not be financially justifiable. |
Comprehensive insurance is more appropriate for individuals who want maximum protection for their vehicle, especially if it is new, valuable, or still under financing. |
| Legal Requirement |
In many countries, third-party car insurance is the minimum legal requirement to drive a vehicle legally on public roads. It ensures that victims of an accident caused by the policyholder receive compensation for their injuries or property damages. |
While comprehensive insurance offers more extensive coverage, it is not always a legal requirement. Some countries may mandate only third-party coverage, making comprehensive insurance optional. |
How to Claim for a Third Party Car Insurance?
The process to claim third party car insurance is straightforward, follow the below steps:-
Step 1: intimate the insurer you have met with an accident resulting in the third party’s loss/damage/injury
Step 2: The insurer needs to be provided with information like the date and time of the accident, details of insurance and policyholders involved, description of injuries sustained, photographs of the incident, eyewitnesses, etc.
Step 3: the insurer will access all the documents and evidence to settle the claim with the third party accordingly.
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 an 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.
Top Third Party Car Insurance Companies in India:
How to Buy Third Party Car Insurance Policy in PolicyBachat?
At PolicyBachat.com buying or third party car insurance renewal online is easy and quickly sitting at home. Follow the below-mentioned steps to renew your policy within 5 minutes.
- Go to 'Car Insurance Online' to compare quotes above this article. Fill in the registration number of your car and required details and tap on 'Start Save Money.
- On the quotes section, either go with your current provider or choose another one to suit your needs.
- Make the payment and you will receive the confirmation at your email address. If assistance needs Call: 1800-123-4003.
Third party Car insurance cost premium can be reduced if your car insurance renewal is done online using the link third party Car Insurance price comparison to the offline mode of renewal where the premium would be slightly higher compared prices to the online premium.
At End:-
In conclusion, buying the cheapest third-party car insurance online offers numerous benefits, including cost savings, convenience, and easy comparison. However, it is crucial to remember that the cheapest option may not always provide the necessary coverage. It is essential to strike a balance between cost and coverage to ensure adequate protection for oneself and others in the event of an accident. While seeking affordable premiums, one must not compromise on essential aspects of insurance.
We encourage readers to make well-informed decisions by thoroughly researching different policies, comparing coverage options, and considering customer reviews. Prioritizing optimal protection ensures peace of mind while driving, safeguarding against potential financial hardships, and promoting responsible and secure motoring on the roads. Remember, a little effort in choosing the right third-party car insurance can go a long way in safeguarding your financial well-being and providing you with the confidence to enjoy every journey to the fullest.