What Is Digit Third-Party Car Insurance and What It Covers?

Owning a car is not just about convenience and mobility; it comes with responsibilities that safeguard both the vehicle owner and other road users. While accidents are unpredictable, the financial and legal repercussions can be significant. This is where Digit Third-Party Car Insurance plays a critical role.

Unlike comprehensive car insurance, which covers both your vehicle and third-party damages, third-party insurance specifically protects you against legal liabilities arising from accidents that cause damage to another person or their property. This means that if you accidentally damage another vehicle, injure someone, or cause property damage, the insurance company steps in to handle the financial compensation and legal formalities, saving you from potentially huge out-of-pocket expenses.

Digit has simplified this process with its fully digital and paperless platform. From buying a policy online to registering claims, the company leverages technology to provide a hassle-free experience. This approach ensures that even first-time car owners or those unfamiliar with insurance procedures can easily comply with legal requirements without stress.

Another key feature of Digit third-party insurance is its affordability. Since the coverage is limited to third-party liabilities, premiums are generally much lower compared to comprehensive plans, making it an ideal choice for budget-conscious car owners or owners of older vehicles. Additionally, premiums are regulated by IRDAI, ensuring transparency and fairness in pricing across insurers.

Third-party insurance also plays a socially responsible role. By mandating that every car on the road has a minimum level of coverage, it ensures that victims of accidents—whether pedestrians, other motorists, or property owners—are financially protected. This not only helps prevent disputes but also reduces the burden on the legal system by streamlining claims through insurance companies.

It’s important to note that while Digit third-party car insurance covers essential liabilities, it does not protect your own vehicle. Therefore, owners of new or high-value cars, or those seeking protection against theft, fire, or natural calamities, may want to consider upgrading to a comprehensive car insurance plan.

The process of availing Digit third-party insurance is straightforward. You simply provide your vehicle details, pay the regulated premium, and receive a policy document digitally. In the event of an accident, you report the incident to Digit, and the insurer handles the legal assessment, compensation, and settlement process for the third party. This minimizes delays and provides peace of mind for the policyholder.

Moreover, Digit ensures legal compliance and transparency with clear policy terms written in simple language. This eliminates confusion about what is covered and what is excluded, making it easier for car owners to understand their responsibilities.

Overall, Digit Third-Party Car Insurance is not just a legal formality—it’s a financial safety net for both the car owner and other road users. Its affordability, simplicity, and legal compliance make it a practical choice for millions of car owners across India.

What Is Digit Third-Party Car Insurance?

Digit Third-Party Car Insurance is a motor insurance policy offered by Go Digit General Insurance Limited, an IRDAI-approved general insurance company in India. This policy provides financial protection against legal liabilities arising from:

· Injury or death of a third party

· Damage to third-party property caused by your car

It is the minimum insurance coverage required by law and ensures that car owners comply with legal norms while being financially protected against third-party claims.

Why Is Third-Party Car Insurance Mandatory in India?

The Indian government has made third-party car insurance compulsory to:

· Protect victims of road accidents

· Ensure compensation for third-party injuries or deaths

· Reduce financial burden on vehicle owners

· Maintain road safety accountability

Driving without a valid third-party insurance policy can lead to heavy fines, legal penalties, or even imprisonment in certain cases.

What Does Digit Third-Party Car Insurance Cover?

Digit third-party car insurance offers specific but essential coverage.

1. Third-Party Bodily Injury or Death

If your insured car causes injury or death to a third party, the policy covers:

· Medical expenses

· Legal liabilities

· Compensation as decided by the court

There is no upper limit on coverage for third-party bodily injury or death, as it is decided by legal authorities.

2. Third-Party Property Damage

If your car damages someone else’s property, Digit third-party insurance covers repair or replacement costs.

· Coverage is capped at ₹7.5 lakh, as per IRDAI regulations.

3. Legal Liabilities

Any legal expenses arising due to third-party claims are covered under the policy.

What Is Not Covered Under Digit Third-Party Car Insurance?

While Digit third-party insurance is essential, it has limitations.

Exclusions include:

· Damage to your own car

· Theft of your vehicle

· Damage due to natural disasters (floods, earthquakes)

· Fire or explosion damage to your car

· Drunk or illegal driving

· Driving without a valid license

· Wear and tear or mechanical failure

Understanding these exclusions helps avoid claim rejections.

How Does Digit Third-Party Car Insurance Work?

The working of Digit third-party car insurance is simple:

1. You purchase the policy for legal compliance

2. If an accident occurs involving a third party, inform the insurer

3. A legal claim is registered

4. Compensation is assessed by the court

5. The insurer settles the claim on your behalf

This protects you from paying heavy compensation out of pocket.

Premium of Digit Third-Party Car Insurance

Premiums for third-party insurance are fixed by IRDAI and depend on engine capacity.

Example:

· Cars up to 1000cc: Lower premium

· Cars between 1000cc–1500cc: Medium premium

· Cars above 1500cc: Higher premium

Since premiums are regulated, the cost remains affordable and consistent across insurers.

Validity Options for Digit Third-Party Car Insurance

· New cars: 3-year third-party policy is mandatory at purchase

· Existing cars: 1-year third-party policy can be renewed annually

Long-term policies help avoid renewal lapses and penalties.

Who Should Buy Digit Third-Party Car Insurance?

Digit third-party car insurance is ideal for:

· Car owners seeking legal compliance

· Owners of old or low-value cars

· People who drive occasionally

· Budget-conscious individuals

However, it may not be sufficient for those seeking full protection.

Digit Third-Party vs Comprehensive Car Insurance

If you want wider protection, a comprehensive plan is recommended.

How to Buy Digit Third-Party Car Insurance?

Buying Digit third-party insurance is quick and digital:

1. Enter car registration details

2. Choose third-party policy

3. Make online payment

4. Receive policy instantly via email

Things to Keep in Mind Before Buying

· Third-party insurance does not cover your car

· Premiums are fixed; discounts are not applicable

· Timely renewal is crucial to avoid penalties

· Not suitable for high-value or new cars

Conclusion

Yes, Digit third-party car insurance is worth buying if your primary goal is legal compliance at an affordable cost. It provides essential financial protection against third-party claims and helps you drive worry-free on Indian roads.

However, if you want coverage for your own car, theft protection, or add-ons, you should consider upgrading to a comprehensive policy.

Read also: How to Contactt ICICI Lombard Car Insurance Customer Care? (Complete Guide 2025)

Kindly note: Insurance plans, coverage, premiums, and claim settlements are subject to the insurer’s terms and conditions and IRDAI guidelines. Squareinsurance acts as a digital insurance comparison and assistance platform. Policy issuance and claim settlement are handled by the insurer. For easy comparison, purchase, or renewal of car insurance policies, you can use the Square Insurance – Buy & Renew app.

Frequently Asked Questions (FAQs)

Q.1. What is Digit third-party car insurance?
Digit third-party car insurance is a policy offered by Go Digit General Insurance Limited that provides financial protection against legal liabilities arising from accidents causing injury, death, or property damage to a third party. It is mandatory by law in India for all vehicles.

Q.2. Is Digit third-party car insurance mandatory?
Yes, third-party insurance is compulsory under the Motor Vehicles Act in India. Driving without it can lead to fines, penalties, or legal action. You can compare, buy, or renew Digit third-party car insurance easily through squareinsurance, which helps simplify the process and ensure legal compliance.

Q.3. How is the premium for Digit third-party car insurance calculated?
Premiums are regulated by IRDAI and depend mainly on the car’s engine capacity. Cars with higher engine capacity typically have higher premiums.

Q.4. How long is a Digit third-party car insurance policy valid?

· New cars: A 3-year third-party policy is mandatory at purchase

· Existing cars: Policy can be renewed annually
Timely renewal ensures compliance and uninterrupted coverage.

Q.5. Can I file a claim with Digit third-party car insurance?
Yes. In case of an accident involving a third party, you must inform Digit immediately. The insurer manages the legal and compensation process on your behalf.