Third Party Insurance

A third party insurance policy offers monetary compensation in case of injuries, property damages, or even loss of life to others. It is mandatory coverage under the Motor Vehicles Act of India and provides essential protection to vehicle owners in case of a road accident. By insuring your vehicle with a 3rd party policy, you ensure legal compliance and safe driving behaviour.Read more

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What is Third Party Car Insurance?

Third-party insurance is the most basic type of car insurance policy that every vehicle owner must have. It provides valuable financial and legal protection if your vehicle causes injury, death, or property damage to other individuals.

Having a third-party policy ensures that you drive in peace and avoid potential fines and legal complications. While it excludes coverage for damages to you or your own vehicle, third party car insurance offers unlimited compensation in the event of a third person's death and property damage claims are limited to Rs. 7.5 Lakh.Read more

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Key Features of Third Party Car Insurance

Third-Party Damages

Covers death, disability & property damage

Premium

Nominal as decided by the IRDAI

Mandatory

Yes

Compensation

Unlimited in death up to ₹7.5 Lakh for property damage

PA Cover

Offered for owner/driver

Own Damages

Not Covered

Premium care for your car

Experience Assured Delivery Program

Dedicated claim manager with you from claim start to settlement

Pick-up & drop from accident spot to repair workshop to home

On-ground workshop team for repair & on-time delivery

Dedicated claim manager with you from claim start to settlement

On-ground workshop team for repair & on-time delivery

Why is Third Party Insurance Important?

Third party insurance is important for both car owners and other individuals on the road. It offers the necessary coverage against legal and financial liabilities that could arise from a road accident involving your vehicle. With a 3rd party policy, you do not have to worry about paying for the medical expenses of injuries suffered by the third person.

The compensation amount under third-party insurance depends on several factors. These include the age, income, occupation of the affected individual, the severity of the injury sustained, and the extent of property damage incurred. If your car is older than 5 years, it is a good idea to get 3rd party car insurance coverage.Read more

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Third-Party Insurance Premium Rates (2026)

The third party car insurance price is decided by IRDAI, and is based on the engine or battery capacity. All general insurers now offer long-term 3rd party insurance plans to car owners, which has resulted in a slight impact on the premiums prices. Here are third-party car insurance premium rates as set by IRDAI:

Regular Car
Electric Car

Engine Capacity

Less than 1000 CC

Third Party Premium

₹2,094

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Engine Capacity

1000 to 1500 CC

Third Party Premium

₹3,416

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Engine Capacity

More than 1500 CC

Third Party Premium

₹7,897

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Battery Capacity

Not Exceeding 30 kWh

Third Party Premium

₹1,780

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Battery Capacity

30 kWh to 65 kWh

Third Party Premium

₹2,904

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Battery Capacity

Exceeding 65 kWh

Third Party Premium

₹6,712

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Key Benefits of Third-Party Insurance

Offers Financial Assistance

Third party insurance provides the policyholder with the financial assistance and helps him/her to pay off the 3rd-party liabilities without exhausting all the savings.

Covers Legal Liabilities

Third party liability insurance legally saves the policyholder in case of an accidental injury, death, or property damage of the third party. Moreover, it also provides compensation to the third person in case of injury or death.

Fulfils Legal Mandate

As per the Motor Vehicles Act of India, 1988, it is legally mandatory for all vehicle owners in India to at least own a third-party insurance cover to be able to use their vehicles on public roads.

Cost-Effective Policy

The coverage offered under third-party liability insurance appears exceptionally cost-effective and rewarding in terms of its cost and premium rate.

Ensures Peace of Mind

Third-party car insurance helps a vehicle owner to drive in peace since help would be provided by the insured during a road mishap.

Coverages Under Third-Party Car Insurance

What is Covered in Policy

Property Damages

If your car hits another person's property, such as a wall or shop, third-party insurance will cover the loss up to the limit of Rs. 7.5 lakh.
Car Damage

If you accidentally hit another individual's car, your third-party policy will pay for the damages to that car.
Accidental Bodily Injuries

If the victim suffers a disability, the compensation is decided by the Motor Accidents Claims Tribunal. However, only 50% is paid by the insurer if the victim suffers a lost limb or partial blindness.
Accidental Death

If the policyholder causes fatal injuries or disability, the third-party insurance will compensate the victim or their family.
Personal Accident Cover

Car insurance companies offer the PA cover (for up to Rs. 15 lakh) for the owner-driver in case of disability or loss of life in an accident. The compensation in case of death goes to the appointed nominee.

What is Not Covered in Policy

Own Damages

Third-party insurance does not cover damages to the insured car. This includes accidental damage, fire, natural or man-made calamities, or theft.
Drunk Driving or Unauthorised Usage

Any third-party liability if driving under the influence of alcohol/drugs, without a valid driving licence, or for racing or other unauthorised purposes are not covered.
Outside Geographical Area

If the insured car causes third-party damages or injuries outside the specified geographical limit, it is not covered.
Contractual Liabilities

Third party insurance does not cover any claims arising out of contractual liability or if someone other than the owner or designated driver was driving.
Nuclear Perils & War

Third-party insurance excludes any damage or liability arising from nuclear weapons or radioactive contamination, directly or indirectly.

Car Third-Party Insurers

Bajaj Third Party Car Insurance

Chola Ms Third Party Car Insurance

Digit Third Party Car Insurance

Future Generali Third Party Car Insurance

HDFC Ergo Third Party Car Insurance

ICICI Lombard Third Party Car Insurance

IFFCO Tokio Third Party Car Insurance

IndusInd General Third-Party Car Insurance

Liberty Third Party Car Insurance

Magma Third Party Car Insurance

View more insurers

Why Third Party Car Insurance is Not Enough?

Here are some reasons why a third party liability policy is not enough for your four-wheeler:

No Option to Avail Add-ons

Add-ons are additional covers that enhance your car insurance coverage. However, with third-party liability insurance, you can not opt for these options. You can only opt for them under a comprehensive car insurance policy.

No Coverage for Damages due to Natural Disasters

Natural disasters, such as floods, earthquakes, tsunamis, etc., are unpredictable. If any of these calamities cause damage or losses to your car, your third-party insurance will not provide coverage.

No Cover for Own Damages (OD)

Third-party liability insurance does not cover damages to your own vehicle. Also, you do not have the option to avail of no claim bonus discounts in a third party policy. To protect against the costs of your own vehicle's damages, you will need to purchase comprehensive car insurance coverage.

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Comprehensive v/s Third-Party Car Insurance

The key differences between comprehensive and third party insurance is the level of coverage offered. To better understand this, go through the table below:

	Third-Party Car Insurance	Comprehensive Car Insurance
Insurance Premium	Insurance Premium Less insurance premium	Offers a wide range of coverage but comes with a considerably high premium
Bodily Injury and Death	Bodily Injury and Death Covers bodily injury and accidental death caused to the third-party	Covers accidental damages to the insured/insured vehicle and third-party liability as well
Property Damage	Property Damage Covers property damage caused to the third-party	Covers third-party property damages and own damages to the car due to natural calamities, fire, theft, accidents
Vehicle Value	Vehicle Value In case the value of the vehicle is low, it's worth taking this	Beneficial for luxury or expensive cars that offers protection against all damages
Mandatory	Mandatory This cover is mandatory under motor laws	This cover is not mandatory and can be opted as per the car owner's discretion

How Does Third Party Liability Insurance Work?

To know how third-party liability insurance works, have a look at this car accident scenario:

First Party: The policyholder or the insured individual

Second Party: The insurance provider

Third Party: The individual who claims from the second party for the damages caused by the first party.

In case the insured with a third party car insurance policy is found liable for the injuries or damages to the third party, a claim will be filed against the policyholder. Now, the insurance company will cover the costs for the injured individual, including medical expenses, lost wages, and potential long-term care. This agreement protects both the insured and the third party from significant financial burden.

The person with the third party liability insurance must immediately inform the insurer about the accident. The insurance company will then register the claim against the insured by the third party.Read more

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How to Buy/Renew Third Party Insurance Online?

Here is how you can easily buy/renew third party car insurance online from Policybazaar Insurance Brokers Private Limited.

From the homepage of Policybazaar.com, select the "Car Insurance" tab
Enter your car number on the given form or select "Brand New Car" option
Select details of your four-wheeler such as make, model, variant, fuel type
If it's an old vehicle, the details of your car will be auto-fetched
From the given third party insurance plans, select the one that suits your need
Make final premium payment via the online payment mode
Your third party car insurance policy will be mailed to you as soon as you make the payment.

How to Claim Third Party Insurance?

To raise a claim under third party car insurance, follow this simple process:

Application

The victim or the legal heir of the departed can make an application against the owner of the vehicle for third-party liability compensation.

Lodge an FIR

Once the application is completed, file an FIR with the police, furnishing the required details. He/she must have a copy of the FIR and the original records of the expenses incurred by the victim.

Approach the Motor Accidents Claims Tribunal

After filling the First Information Report (FIR) successfully, the next step is to register the case with Motor Accidents Claims Tribunal.

Get the Cover Amount

The compensation limit is not pre decided . The insurer compensates the full amount decided by the court of law. However, IRDA limits the coverage for property damage to up to Rs 7.5 lakh.

Documents Required for Third Party Insurance Claim

You will need the following documents at the time of filing a third-party car insurance claim:

Duly Filled & Signed Claim Form

Third Party Insurance Policy Copy

Driving License

Vehicle Registration Certificate

Copy of the Police FIR

Photos of the Incident

Third-Party Liability Insurance: FAQs

General

Buy/Renew Policy

Policy Coverage & Premium

Claims

Q1. What are the types of car insurance I can avail in India?

Ans: The primary category of car insurance includes- third party car insurance, comprehensive car insurance, and own-damage car insurance. While third party insurance is mandatory in India, the others are optional.
Q2. What is the duration of a TP car insurance policy?

Ans: The validity of a third-party insurance plan is usually one year and has to be renewed before the due date. Please note that you will be provided with a fixed grace period for making payment of the premium.
Q3. If I want to sell my car, can I transfer the third party insurance to the new owner?

Ans: If you sell your vehicle to another individual, you can transfer third party car insurance to the name of the new buyer. The new buyer (transferee) has to submit an application for the transfer of insurance with the insurer within a period of 14 days from the date of transfer of the vehicle in his/her name and after the endorsement premium is paid for the remaining duration of the policy.
Q4. Can I switch from comprehensive car insurance to third party insurance?

Ans: Yes. You can convert your comprehensive car insurance policy into third party insurance at the time of policy renewal. You can compare different third party insurance plans and buy the most suitable plan for your car.
Q5. What if I am caught driving my car without valid third party car insurance?

Ans: If traffic police catch you driving a car without a valid third party car insurance cover, you will be fined Rs 2000 or/ and sent to jail for up to three months. If you are caught for the second time, the fine will increase to Rs 4000 or/ along with a jail term of up to three months.
Q6. What would happen if someone else was driving my car at the time of the accident?

Ans: If someone else is driving your car at the time of the accident and has caused damages or injuries to the other individual, your third-party car insurance will cover the liabilities. But your claim will be rejected if the driver was drunk or driving without a valid licence.
Q7. Is third-party car insurance expensive?

Ans: No. Third party insurance is among the cheapest motor insurance policies. Its premium is lower than that of any car insurance policy. In a third-party car insurance plan, the coverage is only for the legal or financial liabilities that may occur due to an accident. These liabilties can result in significant out-of-pocket expenses for which third party insurance covers you.
Q8. How does third-party car insurance work?

Ans: Under third-party insurance, the insurance company covers medical expenses, compensation in case of loss of life, or property damages up to Rs. 7.5 lakh of other individuals in case of an accident caused by your car. Third-party claims are settled through the Motor Accident Claims Tribunal (MACT), which decides the final payout amount based on the severity of the incident.

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Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

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Third Party Liability Insurance Reviews & Ratings

4.8 / 5 (Based on 324 Reviews)

(Showing Newest 10 reviews)

Subodh

Kolkatta, March 07, 2024

★★★★★

Little discount

I am glad to get my Taigun car insured from Policybazaar. I really liked the way of explation the SBI third party insurance paln feature by Mr. Sachin customer support features. Thanks to an executive who explained each and everything in detail.

Rajesh

Gurugram, February 28, 2024

★★★★★

Online process

I preferred the online process as there are a lot of benefits of the online process like there is no involvement of an agent and sometimes customers can get small discounts on online purchases. I took Magma HDI third party car plan online for my Punto car from Policybazaar for which I did not need to go anywhere else.

Atul

Hyderbad, February 26, 2024

★★★★★

Little discount

After comparing many car plans on different platforms I found the right plan on Policybazaar. I bought my Iffco Tokio third party plan online.

Nilesh

Surat, February 22, 2024

★★★★★

Good service

Mr. Sandeep customer support executive explained everything to me about my third-party car plan and its coverage I really appreciate his hard work. under his guidance, I took kotak car insurance for my Dzire car.

Narender

Delhi, February 17, 2024

★★★★★

Financial support

I have secured Alto my car by taking the United India tihird party plan from Policybazaar. Now it will help me in securing my savings from being wasted on unwanted expenses. Also, the comparison is pretty easy on their website.

Rudar

Nagpur, February 08, 2024

★★★★★

Helpful executive

Customer support executive who was suggesting and helping me find a better plan for my Maruti Wagon R car was very good at his job. The interaction with Policybazaar team was fruitful. I chose the Iffco Tokio limited third party plan under the guidance of an Mr. Raman executive. The services were very smooth.

Rohit

Mumbai, February 05, 2024

★★★★★

Excellent customer service

Policybazaar provides such quick response. All my doubts were cleared by the team regarding Reliance third party car insurance for my 2018 Maruti Suzuki Ciaz. I have got excellent customer service from the beginning to the end of the process.

Sunder

Guna, January 30, 2024

★★★★★

Cooperative team

I compared lot of plan features and price in a while and finally I bought third party insurance policy of royal sundaram car insurance for my Renault Duster 2015 model. Their team was so cooperative and knowledgeable.

Jiten

Gandhi Nagar, January 08, 2024

★★★★★

Hassle free experience

I have bought liberty third party car insurance plan for my Maruti Suzuki Swift Dzire. I was amazed as I got it in just a few clicks and even got soft copy instantly. I am very happy with Policy Bazaar's hassle free experience and great customer service.

Mohan

Delhi, December 19, 2022

★★★★★

Iffco Tokio Car Insurance

Anyone who will buy any kind of plan from Policybazaar will definitely love to come here again as Policybazaar provides excellent service to its customers. When I was buying IFFCO Tokio third party car insurance for my Swift car, Policybazaar took care of my needs.

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