What Happens When You Only Have Third-Party Insurance?
Third-party car insurance is a mandatory cover as per the motor laws of India. Driving without this coverage is a punishable offence,
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Is Third-Party Insurance Enough?
Yes, having just a third-party car insurance policy is enough as per the Motor Vehicles Act, of 1988. It is a mandatory cover to legally ply on Indian roads. But, this type of car insurance won't cover you from all types of unforeseen damages that your car may sustain on the road.
In simpler terms, third-party car insurance compensates for any damage caused to the third party due to the insured car. These damages include third-party injury, death and property damage arising out of the insured car.
For instance, if your car hits a third-party property, your 3rd-party insurance will compensate for this loss. The compensation offered in this scenario is limited to Rs. 7.5 Lakh. However, it is unlimited when a third person gets injured, dies or becomes permanently disabled in an accident caused by the insured car.
Thus, third-party insurance for a car is enough as per legal requirements but only limited to 3rd-party liabilities and does not cover any damage sustained by the insured car. So, if you have this policy, you will not be able to raise claims for own damages.
Is There a Need for Comprehensive Car Insurance?
Here are a few reasons why comprehensive car insurance is more favourable than third-party coverage:
- Protects Your Own Car: Besides third-party liabilities, comprehensive car insurance also covers own damages arising out of unforeseen incidents such as accidents, calamities, theft, fire, etc. Thus, this policy offers dual coverage, which is not offered under a third-party insurance coverage.
- Availability of Add-ons: Moreover, by purchasing add-ons in car insurance for an additional premium, you can enhance your comprehensive policy coverage.
- Peace of Mind: Since a comprehensive policy covers a wide range of potential damages, it helps reduce the financial burden of unexpected events, offering peace of mind.
Difference Between Comprehensive & Third-Party Car Insurance
The key difference between comprehensive and third-party insurance is the coverage offered. While a 3rd party policy protects only against damages to other individuals, a comprehensive plan covers damages to the own vehicle as well as third-party liabilities. Have a look at the table below to understand how a comprehensive car policy differs from third-party insurance.
| Parameters |
Comprehensive Car Insurance |
Third-Party Car Insurance |
| Policy Coverage |
Covers both third-party liabilities and damages to the insured car. |
Only covers 3rd party injuries, death and property damages due to the insured vehicle. |
| Requirement |
Optional coverage, not mandatory. |
Compulsory as per Indian Motor Laws |
| Limitations |
Costlier than third-party car insurance |
It does not cover the losses or damages sustained by the insured car. |
| Premium Cost |
Higher than 3rd-party insurance and is based on the car's make & model, vehicle registration area, and the riders you take. |
Cheaper than a comprehensive plan. IRDAI fixes the premium price based on the car's engine capacity. |
| Add-on Covers |
You can opt for add-ons like NCB Protect, Zero Dep, Roadside Assistance, etc., for enhanced coverage |
Add-ons are not available. |
You may also read: Comprehensive vs Third Party Insurance
Wrapping Up!
While third-party insurance fulfils the minimum legal requirements, it does not provide enough protection to you & your vehicle. A comprehensive car insurance policy offers a broader level of coverage, including both 3rd-party liabilities & own damages. You can easily compare car insurance online on Policybazaar.com and opt for the right coverage at the right price.
