Difference Between Own Damage and Third Party Car Insurance

Get Car Insurance starting at only ₹2,094/year #
Processing

Before purchasing car insurance for your prized possession, it is imperative to understand the types of motor insurance policies offered in India. In this article, we will tell you about own damage and third party car insurance and how they are different from each other.

Read more

  • Renew policy In 2 minutes*

  • 20+ Insurers to choose

  • 51 Lakh+ Vehicles Insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Get Car Insurance starting at only ₹2,094/year #
Looking for Car Insurance?
Select your city or RTO
Search city or RTO
Can’t find your RTO? Search for it
Search Car Brand
    Search model for Maruti Suzuki
      Search for variant
        View all variants
          Please fill your details
          Your full name
          Email address
          Mobile number
          View Prices
          Please wait..
          By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
          Select Make
          Select Model
          Fuel Type
          Select variant
          Registration year
          Registration month
          Save & update
          Please wait..

          What is Third Party Car Insurance?

          A third party car insurance policy is a mandatory cover that every car owner must have as per the motor laws of India. This motor insurance policy covers the policyholder against accidental damages sustained by third parties due to the insured vehicle. It covers third party liabilities like third party property damages, death or bodily injuries to the third party caused due to an accident with the insured car.

          Under third party car insurance, the compensation amount is unlimited in case of death. On the other hand, the compensation is limited to Rs. 7.5 lakh for third party property damages.

          Thus, to sum up, a third party insurance plan offers coverage against

          • Third-party property damages
          • Death of the third party
          • Bodily injury of the third party,

          However, this policy does not cover damages sustained by the insured car due to any uncertain event. For this, a car owner is required to purchase standalone own damage or a comprehensive car insurance policy.

          What is a Standalone Own Damage Car Insurance Policy?

          Standalone own-damage car insurance is another major type of motor insurance policy offered by insurance companies in India. Own damage car insurance provides compensation against any own damages sustained by the insured car due to an unforeseen event like an accident, earthquake, theft, riot, fire, etc. This policy can only be purchased if you have an existing third party liability car policy.

          If a car owner wants to cover both third-party liabilities and own damages under one policy, then he/she can consider buying a comprehensive motor insurance policy. Besides, insurance companies also offer a bundled car insurance policy that comes with 1-year own damage + 3-year third party liability cover. Under this policy, the policyholder can renew own damages yearly as per his/her requirements.

          The coverage of an own damage motor insurance policy can also be enhanced by purchasing additional covers at an extra premium amount. Some of these add-ons are nil depreciation cover, NCB protect cover, roadside assistance cover, tyre protect cover, etc.

          Difference Between Own Damage and Third-Party Car Insurance

          Let us now understand the difference between own damage and third party insurance with the help of the following table:

          Point of Difference Own Damage Car Insurance Third Party Car Insurance
          Coverage Covers a four-wheeler against own damages arising out of road accidents, theft, natural and manmade calamities, etc. Offers coverage against any third party liabilities arising out of the insured car
          Compulsion Own damage cover is not a mandatory cover as per the Indian motor laws. Third party liability cover is mandatory to legally ply on the roads of India.
          Exclusions It excludes third party liabilities. Third party insurance does not cover own damages sustained by the insured vehicle.
          Standalone Purchase An own damage cover cannot be purchased separately. It can only be purchased along with a third party liability cover or under a comprehensive car insurance cover. Third party car insurance, being a mandatory cover, can be purchased separately by a car owner.
          Customization An own damage motor insurance policy can be customized by purchasing additional covers. A third party liability car insurance cannot be customized with add-ons as it only covers third party damages.
          Validity The validity of own damage insurance is usually 1 year after which it has to be renewed. For new cars, purchasing a 3 year bundled third party car insurance is mandatory. Otherwise, you can also go with a one-year liability-only policy.

          Wrapping Up!

          Third party and own damages insurance are different from each other in many aspects. While the first one is a compulsory cover, the latter can be purchased to extend the policy coverage as per the requirements of the car owner. You must be well aware of the differences between the two plans so that you can make a wise purchasing decision. Besides, you can also compare plans of multiple car insurers on Policybazaar.com to choose the right car policy for your four-wheeler.

          Find similar car insurance quotes by body type

          Hatchback Sedan SUV MUV
          Search
          Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
           Why buy from policybazaar

          Car insurance articles

          Recent Articles
          Popular Articles
          6 Essential Things to Know About Your Comprehensive Car Insurance Plan

          30 Mar 2023

          Car insurance is a mandatory requirement for all cars plying on
          Read more
          How Long Can You Wait to File a Car Insurance Claim?

          22 Mar 2023

          When an unanticipated road accident occurs, filing a car insurance
          Read more
          How to Transfer Car Ownership Online?

          20 Mar 2023

          A car's ownership is usually transferred if the car is sold to a
          Read more
          About Hybrid Cars -Types, Advantages, Hybrid vs Electric Car

          16 Mar 2023

          Due to their diverse benefits such as lower fuel economy and low
          Read more
          Vehicle Scrappage Policy in India: All You Need to Know

          15 Mar 2023

          With an aim to phase out unfit and polluting vehicles, the
          Read more
          Check Car Insurance Status Online on Parivahan Sewa/ RTO?
          It doesn’t matter if you are an excellent driver or take your car out only once in a few months, your car must be
          Read more
          Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
          Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
          Read more
          How to Find Car Insurance Details by Registration Number?
          As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you
          Read more
          Multiple Ways To Check Your Car Insurance Status Online
          With everything going digital, checking vehicle insurance status online has become easier than ever. It not only
          Read more
          Transferring Car Insurance from One Person to Another
          An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance
          Read more

          top
          View Plans
          Close
          Download the Policybazaar app
          to manage all your insurance needs.
          INSTALL