Have you ever wondered why some car owners with expired or no car insurance get fined on the road? Or, which car insurance protects the car owners legally?

That basic cover is called a Third-Party Car Insurance Policy. It may not repair your own car, but it plays a crucial role when accidents involve other people or property. You can drive knowing that if something unexpected happens to others on the road, you have support to handle the situation responsibly.

In this blog, we will break down what third-party car insurance really means, how it works, and why it is so important for every car owner.

What is Third-Party Car Insurance?

Third-Party Car Insurance is the most basic form of car insurance that protects you if your vehicle causes injury, death, or property damage to someone else. It does not pay for repairs to your own car.

This policy is compulsory in India, which means every car owner must have it to drive legally. Its role is to handle the financial and legal responsibility that comes with accidents involving other people or their belongings.

What Does Third-Party Car Insurance Cover?

Third-Party Car Insurance covers losses that your car causes to others. It is meant to protect you from legal and financial trouble after an accident.

It usually includes:

• Injury or death of another person
• Damage to someone else’s vehicle or property
• Legal costs related to third-party claims

Note: This cover applies when the accident happens on public roads and involves a third party, such as another driver, passenger, pedestrian, or property owner.

What Does Third-Party Car Insurance Not Cover?

Third-Party Car Insurance only protects others, not you or your vehicle. It does not pay for your own losses after an accident.

It usually does not cover:

• Damage to your own car
• Theft or total loss of your vehicle
• Fire, flood, or natural disaster damage to your car
• Injuries to the driver or passengers in your vehicle
• Repairs caused by wear and tear or mechanical failure
• Accidents while driving under the influence of alcohol or without a valid licence

How is Third-Party Insurance Beneficial?

Third-Party Insurance is beneficial because it protects both your finances and your legal standing when an accident involves others.

Under Section 146 of the Motor Vehicles Act, 1988, every car owner in India must have at least a third-party insurance policy to drive legally on public roads. Here is how it truly helps:

• It allows you to drive legally, since this cover is mandatory in India.
• It pays compensation if another person is injured or loses their life.
• It covers repair costs for damage to someone else’s vehicle or property.
• It supports legal expenses related to third-party claims.
• It saves you from sudden and heavy out-of-pocket payments.
• It gives confidence and peace of mind every time you take your car on the road.

Third-Party Car Insurance Premium Rates

Given below are the details related to third-party car insurance:

Table showing the Rate List

*Three-year premiums are multi-year policy amounts based on IRDAI rates.

Things to Remember

• Premiums for third-party liability are fixed by the IRDAI and remain the same across insurers for the same vehicle category.
• For electric cars, the rates depend on battery capacity rather than engine size.
• These figures apply only to standard third-party policies and do not include GST or optional own-damage cover.

Conclusion

In conclusion, third-party car insurance is an essential part of responsible driving in India. It keeps you compliant with the law under the Motor Vehicles Act and protects you from large financial losses if your car injures someone or damages their property.

This policy helps manage legal claims, medical compensation, and repair expenses for third parties. While it does not cover your own car, it still offers strong basic protection and peace of mind every time you take your vehicle on the road.

Frequently Asked Questions

What is third-party car insurance?
It is a basic motor insurance policy that covers injury, death, or property damage caused to others by your car.

Is third-party insurance compulsory in India?
Yes, it is mandatory under the Motor Vehicles Act for all car owners.

What does third-party car insurance cover?
It covers third-party injury or death, property damage, and legal expenses related to claims.

Does third-party insurance cover my own car damage?
No, it does not pay for repairs to your own vehicle.

How is the premium decided for third-party insurance?
The premium is fixed by the regulator and depends on your car’s engine size or battery capacity.

Can I upgrade from third-party to comprehensive insurance later?
Yes, you can switch to a comprehensive policy at renewal for wider protection.