As per the Motor Vehicles Act 1988, every four-wheeler owner in India needs to buy a third-party car insurance policy mandatorily. It offers financial coverage to owners against any liabilities that can arise due to losses and damage caused to the property or life of any third party.
What is third-party insurance?
Third-party car insurance is a type of motor insurance that offers a cover against any financial liabilities that might come into effect due to an accident while riding your vehicle. However, in case of damage caused to the insured individual or the vehicle, there will not be any coverage available.
In case of an accident causing injury or damage to a third party, details of the incidents must be reported to the insurer. The insurer checks and verifies the claim and settles it with the third party.
Key features and benefits of third-party car insurance
Coverage for third-party liabilities
Insurers can get financial protection in the event of any damage, death or loss caused to a third party due to any mishap or accident.
Affordable premium
Third-party car insurance policies are usually available at a low monthly premium. This ensures you have the insurance coverage you need for your vehicle without having to spend a huge amount of money.
Peace of mind
A third-party car insurance policy ensures peace of mind by providing financial coverage in the event of any accident or mishap that might involve a third party.
Easy online process
You can purchase a third-party car insurance policy online with zero paperwork and just a few clicks from the comfort of your home.
Inclusions of a third-party car insurance policy
Accidental damage to third-party property
A third-party motor insurance policy provides financial protection against damages to a third-party vehicle or property involved in an accident.
Accidental injury to or death of a third party
A standalone third-party car insurance plan will also cover any liability that might come up due to the injury or death of a third party caused by the policyholder’s car.
Exclusions of a third-party car insurance policy
- Injuries or death of the owner or driver of the car
- Any damage caused to the policyholder’s car due to theft, fire or an accident
- Any accident that was caused when the driver was under the influence of alcohol or any other substance
- The insured vehicle was used for commercial purpose
- In case the driver drove the insured car without a valid license or on the wrong side
How to raise a claim request for third-party car insurance
It is quite easy to file a claim against your third-party car insurance policy. Here are the steps to follow:
Step 1: Inform the insurer about the accident that involves third-party loss or damage.
Step 2: Share all necessary details about the accident with the insurer. This will include the time and place of the mishap, eyewitnesses, photos of the incident, details of the policyholder and the insurance policy and others.
Step 3: The insurance provider will verify all details as well as the documents provided and settle the claim with the third party.
Why should you Buy Third-party Car Insurance
It is always beneficial to have a third-party car insurance policy in place in case of any unfortunate eventuality. Third-party Insurance provides an additional layer of protection to your existing Auto Insurance and covers unforeseen expenses in the future.
Financially beneficial:
Third-party Car Insurance online will protect you from heavy fines and damage costs of a third party.
Cost-Effective:
Third-Party Car Insurance is cost-effective and provides long-term benefits compared to other plans.
Licence Protection:
Third-party vehicle insurance safeguards against the seizure of a driving licence.
Legal Protection:
Third-Party Car Insurance saves policyholders from time-consuming legal hassles.
Safety Net:
Third-party insurance provides a personal accident cover of up to 15 lakhs.
Why choose Bajaj Finance for Third-party Car Insurance?
Bajaj Finance offers car insurance plans from top insurance providers. Some of the advantages of purchasing car insurance policies from Bajaj Finance are:
No documentation required
You can purchase comprehensive and third-party car insurance plan from Bajaj Finance conveniently without any paperwork.
Wide network of registered garages
The insurance partners of Bajaj Finance offer a wide network of 4,500+ garages spread across the country. You can get the convenience of cashless car repairs at any of these garages.
Third-party insurance premium rates
The Insurance Regulatory and Development Authority of India fixes the third-party car insurance premium based on the engine CC. The premiums predetermined for the third-party insurance policies are generally lower than the comprehensive car insurance policies.
Following are the premiums set for third-party insurance policies for old, new and electric cars.
Third-party insurance premiums for the old cars
Cars with engine CC |
Premiums |
Up to 1,000 CC |
Rs. 2,094 |
1,000-1,500 CC |
Rs. 3,416 |
More than 1,500 CC |
Rs. 7,897 |
Single premiums set for three years third-party car insurance policies
Cars with engine CC |
Premiums |
Up to 1,000 CC |
Rs. 6,521 |
1,000-1,500 CC |
Rs. 10,640 |
More than 1,500 CC |
Rs. 24,596 |
Single premiums set for three years third-party insurance policies for electric vehicles
Cars with engine CC |
Premiums |
Up to 30 KW |
Rs. 5,543 |
30 – 65 KW |
Rs. 9,044 |
More than 65 KW |
Rs. 24,907 |
Comprehensive vs third-party car insurance policies
Below are the major differences between comprehensive and third-party car insurance policies.
Feature |
Comprehensive car insurance |
Third-party car insurance |
Coverage |
Covers expenses for the damages caused to the insured vehicle and third-party liabilities, such as damage to the property or injury or death of a third party |
Covers the policyholder only against third-party liabilities such as damages caused to the third party’s vehicle or property or any physical injury caused to them in an accident |
Add-ons |
Flexibility to add add-on covers like consumable cover, engine protection cover, zero depreciation cover, roadside assistance cover, NCB protection cover, key replacement cover and more to the basic car insurance policy |
There are no additional covers available on third-party car insurance policies |
Cost |
Due to the availability of extensive coverage, a comprehensive four-wheeler policy is comparatively expensive |
These policies are relatively cheaper than comprehensive plans due to restricted coverage |