The Insurance Regulatory and Development Authority of India (IRDAI) determines the rates for third-party car insurance in India. The premium for third-party insurance is calculated based on the engine capacity of the vehicle. For private cars with engine capacity less than or equal to 1,000cc, the premium rate is fixed at Rs. 2,072 for a policy term of one year. For private cars with engine capacity of more than 1,000cc, the premium rate is Rs. 3,221 for a policy term of one year. However, it is important to note that third-party insurance only covers damages caused to third-party property and injury to third-party individuals. It does not provide any coverage for damages caused to the insured car. Hence, car owners may want to consider purchasing comprehensive insurance for complete protection.
Why Third Party Insurance Is Mandatory?
Third-Party Insurance is mandatory to protect the interests of accident victims, ensuring they receive compensation. It also helps maintain road safety by holding vehicle owners accountable for their actions.
Why Third Party Insurance Is Required?
Third-Party Insurance is necessary to cover the liability of the insured person towards third parties for injury, death, or property damage in accidents. Law to ensure that victims of accidents are compensated mandates it.
What Is Covered Under 3rd Party Car Insurance?
Third-party car insurance, also known as liability-only insurance, primarily covers damage or injury caused to third parties in the event of an accident. This insurance does not cover damage to your own vehicle. It includes coverage for bodily injury or death of third parties and damage to their property. In some cases, it may also provide personal accident coverage for the policyholder and passengers. It is mandatory by law in many countries to have third-party car insurance to ensure compensation for third-party losses in case of an accident involving your vehicle.
Is Third Party Car Insurance Valid?
Third-party car insurance is considered valid when it is active and up to date. Ensure that you pay your premiums on time to maintain the validity of your policy. In case of an accident, your insurance provider will assess the validity of your policy before processing claims.
What Is The Cheapest Third Party Car Insurance?
The cost of the cheapest third-party car insurance can vary based on factors such as your location, driving history, and the insurance provider. To find the most affordable option, it's essential to compare quotes from different insurers and choose a policy that meets your legal requirements while offering competitive rates.