The Motor Vehicles Act, 1988 has mandated third-party car insurance as the most basic requirement for every vehicle owner to carry while driving on Indian roads. Hence, a vehicle being driven without valid insurance would be deemed illegal by the law.
Cholamandalam third-party car insurance fulfills this basic requirement by providing you coverage for legal and financial liabilities towards a third-party
Cholamandalam Third Party Car Insurance Vs Comprehensive Car Insurance
Before you choose to buy/renew car insurance online, consider going through the following differences between a third-party car insurance plan and a comprehensive car insurance plan.
Categories |
Cholamandalam Third Party Car Insurance |
Cholamandalam Comprehensive Car Insurance |
Policy Coverage |
Offers protection only for third-party liabilities including third-party property damage cover up to Rs 7.5 lakh |
Protection is provided for bodily/injury/property damage to a third party as well as damage to the policyholder’s vehicle |
Legal Requirement |
It is the most basic mandatory document to be carried while driving |
Not mandatory by the law but highly suggested for enhanced coverage while driving on the road |
Own Damages Cover |
Not provided |
Provided |
Premium |
Cost is comparatively less due to limited coverage |
Higher cost comparatively due to extensive coverage |
Add-on Covers |
Not applicable with a third-party car insurance policy |
Enhanced coverage can be opted for, to make this insurance policy more comprehensive with add-on covers |
What is covered under Cholamandalam Third-Party Car Insurance?
Cholamandalam third-party car insurance keeps you financially secured against any unforeseen accidents by covering all liabilities arising out of damages caused to a third party. This not only ensures keeping you cushioned against unplanned expenses but also helps drive with peace of mind.
Following are the benefits offered under your Cholamandalam third-party car insurance:
- Damage caused to a third-party vehicle/property – You will be covered in case your vehicle causes damage to the vehicle/property of a third in an accident.
- Bodily damage caused to a third-party– It provides compensation to the third party victim who has been injured in an accident caused by the insured car. It also pays compensation in case the accident leads to the death or permanent disability of the third party victim.
- Injuries caused to any other individuals in the accident – In case there are additional people injured in the course of the accident, you would be covered against the liability for the injuries sustained by them
Cholamandalam MS Car Insurance Company promises to cover property/vehicle damages for up to Rs. 7.5 lakh. Additionally, the compensation amount to be paid for any personal damage caused to the third party is decided by the court of Motor Accidents Claims Tribunal (MACT).
What is not covered under Cholamandalam Third Party Car Insurance?
If you have made up your mind to choose a third-party car insurance plan over a comprehensive car insurance policy, do consider the following events which are not covered the Cholamandalam Third-Party Car Insurance policy:
- If the accident was staged or caused deliberately
- Any damage sustained by the policyholder’s vehicle or any belongings in the car, not just in an accident but also in the case of theft or fire
- Bodily injury or death of the policyholder
- Damage caused to the third party via an accident caused due to the owner of the vehicle being intoxicated
- Any sort of liability occurred due to an accident outside the specified geographic location
- Contractual liability
- An accident caused by a vehicle without valid registration or the driver not carrying a valid license
- Non-adherence to traffic signals such as jumping red lights, driving on the wrong side of the road, or not following the speed limit

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Cholamandalam Third Party Car Insurance – FAQs
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Q1. Can I transfer my existing Cholamandalam third-party car insurance if I choose to sell my car?
Yes, it is possible to transfer your third-party car insurance in case you have sold the vehicle. Please note that such transfer can only occur in the name of the new buyer and not to a new vehicle. You would need to apply to Cholamandalam MS General Insurance Company within 14 days from the date of the vehicle's transfer.
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Q2. For how long will my Cholamandalam third-party car insurance be valid?
A third-party car insurance plan is valid for 1 year from the date it is bought. However, keep in mind that it is mandatory to buy a minimum 3-year cover.
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Q3. Is buying Cholamandalam Third-Party Car Insurance necessary if my car is old?
The Motor Vehicles Act, 1988 has made it mandatory to buy at least a third-party car insurance plan without making any distinction between old or new vehicles. Having said that, it is cheaper to buy car insurance for an older car as the value of the vehicle depreciates with time.
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Q4. What will happen to my No Claim Bonus if I raise a claim only once a year under my Cholamandalam Third-Party Car Insurance?
Even if you make a single claim in a year, your No Claim Bonus would be reset to zero as it is awarded as a bonus only in the case of a completely claim-free policy year.