In addition to being a legal requirement, the right insurance is also critical to protecting your financial future as you buy and use a vehicle. Of the many types of auto insurance that can be purchased, third-party auto insurance is the most basic and essential type of coverage plan. This article will cover the fundamentals of What is Third Party Car Insurance, including what is it, some of the benefits, and drawbacks of the insurance and why many drivers get it.
Third Party Car Insurance? Definition
Third-party liability insurance protects you from any legal responsibilities in the event that your vehicle causes an accident that results in losses to third parties. Anyone who is not one of the two parties to the insurance contract—that is, you, the policyholder, and your insurance provider—is referred to as a “third party.”
How Does a Third Party Car Insurance Policy Work?
Your third-party auto insurance will pay for the other party’s car repairs and any necessary medical care for their injuries in the event of an accident in which you are at fault. It might also cover legal responsibilities resulting from the accident as well as damages to other properties, including buildings or fences. Importantly, the Third Party Insurance coverage limit is predetermined by the insurance carrier and may change depending on the terms of the policy. The policyholder will be held personally responsible for the remaining costs if the damages or injuries exceed the policy’s maximum.
We will assess the other party’s vehicle damage and the injured driver’s medical expenses when you submit a claim to us. If found to be legitimate, we will cover the third party’s auto repair expenses as well as any related medical bills up to the predefined limitations of the policy. One of the main benefits of third-party auto insurance is that it satisfies legal requirements in many nations, enabling you to drive lawfully. For better vehicle protection and potential medical costs, it’s important to be aware of its limitations and take into account extra coverage, such as comprehensive insurance.
Key Features of Third-Party Liability Car Insurance
- All automobiles are required by law to have it.
- IRDAI sets the same premium rates for all insurers.
- Both hybrid and vintage vehicles are eligible for discounts.
- The car’s cubic capacity and usage type (private or commercial) determine the premium.
- When a new car is purchased, it must be used for three years. It can be taken once a year for older vehicles.
Why Do You Need Third-Party Car Insurance?
- Safety net: offers monetary protection against unanticipated collisions brought on by your insured vehicle.
- Legal requirement: The Indian Motor Vehicles Act of 1988 mandates that all motor vehicles have third-party auto insurance. If you don’t have a current third-party auto insurance policy, you can be subject to penalties. The procedure of renewing third-party auto insurance online is easy and takes less time.
- Coverage for third-party liabilities: Third-party property damage, injury, or death caused by your insured vehicle is covered by a third-party auto insurance policy. At your convenience, you can submit an online claim for auto insurance.
What Does Third-Party Car Insurance Cover?
- Property
- Individuals
- Another vehicle
What is Not Covered Under Third Party Insurance?
- Theft of parts or accessories
- Deaths or injuries to the people within your vehicle
- Your own vehicle being damaged in an accident or by any other danger
- any damages brought on by driving while intoxicated, without a legal license, etc.
Third-Party Car Insurance Premium Rates (2023)
1 Year Single Premium For Cars
| Engine Cubic Capacity | Third-Party Car Insurance Price |
| Up to 1000 CC | ₹2094 |
| Between 1000 and 1500 CC | ₹3416 |
| Exceeding 1500 CC | ₹7897 |
3-Year Single Premium For Cars
| Engine Cubic Capacity | Third-Party Car Insurance Price |
| Up to 1000 CC | ₹6521 |
| Between 1000 and 1500 CC | ₹10640 |
| Exceeding 1500 CC | ₹24596 |
How to Buy Third-Party Liability Insurance?
- Locate the third-party auto insurance website by scrolling.
- Enter the registration number and other information for your vehicle.
- Choose a plan for third-party insurance.
- Select between a one-year or three-year coverage period.
- Enter personal details such as your name, address, and phone number.
- Pay for premiums online with a card, wallet, UPI, or net banking.
- A copy of the policy will be sent to you immediately.
Conclusion
What is Third Party Car Insurance? In the event that your car damages or injures someone else, this insurance offers both financial and legal protection. We’ll go over the basics, advantages, restrictions, and prices of third-party auto insurance in this article to help you make wise choices that will protect your financial security and meet legal requirements.