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Third Party Insurance in India

Updated on September 30, 2022 , 7678 views

Third party insurance is a statutory requirement in India for Motor Insurance. Essentially, it covers the third person who has been injured in an accident. This policy covers your legal liability arising due to the damage caused by you to a third party only – death, bodily injury and damage to third party property – while using your car.

third-party-insurance

In India, under the provision of the Motor Vehicles Act, 1988, it is mandatory to have a valid third party liability insurance to drive a vehicle on the road. In this article, you will understand the importance and features of third party car insurance and the latest way to buy or renew third party insurance online.

Third Party Liability Insurance

As per the Indian law, every vehicle – be it a car, bike or scooter – plying on the roads must be insured or have valid third party liability coverage. The policy ensures that you would not have to bear any sort of legal liability or expenses arising from an accident that has caused loss or damage to the third person. Having this insurance keeps you away from any legal repercussions arising out of the third party liability.

The plan does not provide coverage for any loss or damage caused to the owner's vehicle or to the insured. Although it is covered under motor or car insurance, customers can still buy this as a separate policy.

Features of Third Party Car Insurance

third-party-insurance

  • The insurance does not cover loss or damage caused to the insured, but only to the third person.
  • This policy covers death, injury or property damage caused to the third party.
  • Third party insurance policy as an inclusion in the overall car insurance policy is extremely cost-effective and beneficial in terms of financial costs and premiums.
  • Third party liability insurance involves a lawyer’s involvement.

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Third Party Insurance: Exclusions

These are some of the typical cover exclusions in the third party insurance policy.

  • Loss or Damage caused by war.
  • Loss or damage caused to the third person when being driven by someone who isn’t the owner or designated driver.
  • Loss or damage sustained outside the specified geographical area.
  • Claims that arises out of any contractual liability.

Best Third Party Car Insurance Provider

Car Insurance companies in India Property Damages to Third Party Personal Accident Cover Add ons
Reliance Car Insurance Upto 7.5 Lakh Available Not Available
ICICI Lombard Car Insurance Available Up to 15 lakh Not Available
IFFCO Tokio Car Insurance Up to 7.5 lakhs Covered under mandatory personal accident insurance Not Available
Go Digit Up to 7.5 lakhs Up to 15 lakhs Not Available
ACKO Car Insurance Up to 7.5 lakh Up to Rs. 15 Not Available
TATA AIG Car Insurance Available Available Not Available
Bajaj Finserv Available Treatment Cost Not Available
Kotak Car Insurance Available Available Not Available
SBI Car Insurance Available Up to 15 lakhs Available

Third Party Insurance Online

In this digital era, every sector is going online and so is the insurance industry! The biggest advantage of buying the third party insurance policy online is that it is easy, convenient and in all possibility, it simplifies your purchasing decision. Through this option, you can compare different motor insurance or Two Wheeler insurance plans and decide the one that suits best to your vehicle. Remember, never compromise on the quality of the insurance plan! Make an important investment today – buy a third party liability insurance!

Disclaimer:
All efforts have been made to ensure the information provided here is accurate. However, no guarantees are made regarding correctness of data. Please verify with scheme information document before making any investment.
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