What Happens When You Only Have Third-Party Insurance?

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 motor insurance won’t cover you from all types of unforeseen damages that your car may sustain on road.

To summarise in simpler terms, third-party liability 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 insurance cover will compensate for this loss to the third party. Under third-party insurance, the compensation offered is limited to Rs. 7.5 lakh for third-party property damage. But 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 third-party damages and does not cover any own damage sustained by the insured car. So, if you only have third-party insurance you will only be able to raise claims for third-party damage and not own damages.

Is There a Need for Comprehensive Car Insurance?

If you just want to comply with motor laws, third-party insurance would be enough for you. But it is not enough in case you also want to cover your own car or enhance your coverage by purchasing additional covers. In such scenarios, having a comprehensive car insurance policy becomes essential. 

Here are a few reasons why comprehensive car insurance is more favourable than third-party coverage:

• Covers your own Car:

  Apart from covering 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:

  As stated above, third-party car insurance cannot be enhanced as it only covers third-party damages. However, the coverage of comprehensive car insurance can be enhanced by purchasing add-ons by paying some extra premium. 

Wrapping Up!

To summarise, if you have a third-party insurance, you will only be able to raise a claim for third-party damages. This policy does not include its own damages under its coverage so you won’t be able to get compensated if your car sustained damages due to any unforeseen incident. Thus, comprehensive car insurance will be the right option. You can also compare car insurance online from 20+ car insurance companies on Policybazaar.com and purchase the right one for your car.