Third Party Car Insurance

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Third party car insurance plan offers financial coverage to your vehicle at an affordable premium. Compensation for third-party damages, death or disabilities resulting from accidents involving the insured vehicle are covered under this insurance policy.

According to the Motor Vehicles Act, 1988, it is mandatory for every vehicle owner on the Indian roads to own a basic third-party insurance cover. However, while mandatory, a third party four-wheeler insurance plan does not cover the damages sustained by the insured car or its driver in the event of a mishap.

Third Party Car Insurance Plans & Premium

There are various insurance providers which are accessible on the online platform of Bajaj Markets. They offer auto insurance policies, allowing you to choose from a variety of possibilities. You can perform a comparative analysis amongst several policies based on their features, premiums, and benefits in order to choose the one that best suits your requirements. Here’s a table that depicts the details of the same:

Insurance Provider	Claim Settlement Ratio (2021-2022)	Starting Premium	Check Plans
SBI General Car Insurance	98.00%	₹2094*	Check Plans
Bajaj Allianz Car Insurance	98.54%	₹2094*	Check Plans
HDFC Ergo Car Insurance	99.00%	₹2094*	Check Plans
Acko Car Insurance	95.50%	₹2094*	Check Plans

Disclaimer: *The premium rates are only estimates. The exact premium you need to pay may vary depending on a variety of variables. Please check the current premium rates before purchasing your auto insurance coverage.

How to Buy/Renew Third Party Car Insurance Online

Here’s how you can purchase and renew third-party car insurance cover online at the Bajaj Markets’s platform with a few simple clicks. Follow these steps and you are good to go:

Navigate to the ‘Car Insurance Premium Calculator’ page on Bajaj Markets
Choose the type of coverage you need such as the third-party four-wheeler insurance plan
Input the required details in the application form that displays on your screen
Upload the necessary documents as asked
Pay the third-party car insurance premium online via the available payment modes such as net banking, UPI, credit/debit cards, and more

The third-party car insurance policy document will now be sent to your registered email ID. With this, you have secured your vehicle with a third-party four-wheeler insurance policy against third-party legal and financial liabilities.

Features & Benefits of Third Party Car Insurance

Low Premium

You can buy a third-party insurance policy at a price which is very nominal with respect to a comprehensive car insurance policy.

Easy Purchase Process

The process of buying a third-party liability cover is extremely hassle-free. Being a standard insurance policy, there are not a lot of options to choose from. All you are required to do is choose the model of your car and opt for the insurance cover.

Liability Cover

A third-party liability policy will provide financial coverage against injuries caused to a third party and their property by your insured vehicle.

Economic Security

If you are involved in an accident and injured a third party, your insurance company will pay for the damage to their property. As a result, your finances will be secured and you won't have to pay from your pocket.

Safeguards from Legal Troubles

Third party car insurance is mandated by the law, and violating the law might result in punishment or other legal repercussions. However, third party vehicle insurance can shield you against issues of this nature.

Personal Accident Coverage

By insuring your car, you could get <a href="https://www.bajajfinservmarkets.in/insurance/car-insurance/compulsory-personal-accident-cover.html">personal accident coverage</a>. In the event that the insured sustains a physical injury, passes away, or becomes disabled while operating the car, the insurance pays out.

Third-party Liability in Car Insurance

Here are the three parties which are involved in a third-party insurance cover:

First Party

The policyholder is the first party who is responsible for compensating the third-party for the damages or injuries caused to them or their property.

Second Party

The insurance company of the policyholder is the second party who compensates the third-parties involved according to the terms and conditions laid down in the insurance plan.

Third party

Any other person who sustains an injury or whose property gets damaged by the insured vehicle of the policyholder is the third party. Let’s take an example of a pedestrian. Suppose there is an accident and the victim sustains damages or injuries by the insured vehicle of the policyholder or the first party.

If there is a case in which the injury caused to the third party is such that it does not permit the injured to continue working, thereby limiting or stopping their income, the first party will have to pay the compensation accordingly. If there is a case of death, the worth of the deceased person would be ascertained and the first party will have to compensate that amount to their family.

Third Party Car Insurance Policy - Inclusion & Exclusion

Here’s what is covered and not covered under third-party car insurance cover:

Inclusions:

Financial and legal liabilities arising due to injuries or death of a third-party person due to the insured vehicle

Personal Accident Cover for the driver if they are the owner
Financial and legal liabilities arising due to damages to a third-party

Exclusions:

Financial liabilities arising due to an accident of your insured car while the driver is drunk driving
Financial damages arising due to an invasion or a war situation
The financial expenses arising due to an accident which occurs when the driver is driving without a valid driver’s licence
Financial expenses arising due to an accident involving the insured car outside the mentioned geographical area
If the insured vehicle is utilised for illegal activities, speed racing, or commercial purposes
Damages caused indirectly or directly by a radioactive influence or a nuclear weapon
Financial or legal consequences arising if the driver of the insured car is not designated
Third-party liabilities arising in case of any contractual liability

Third Party Car Insurance Vs Comprehensive Car Insurance Plan

Insurance companies have come up with several types of insurance plans. Each plan has its own set of features and benefits. While there is third party insurance, which offers limited financial protection in case of a road accident, the insurance companies also offer comprehensive car insurance policies which offer a wide range of financial securities. Here’s a closer look at the differences between third party car insurance and comprehensive car insurance.

Third Party Car Insurance	Comprehensive Car Insurance
Premium is cost-effective	Premium cost is high
Provides protection against third party liabilities only	Safeguards you against robbery, man-made disasters, personal injury, and third-party liabilities
Third-party automobile insurance cannot be modified	You may easily add additional coverage to your comprehensive insurance for increased protection
If your automobile is old or you don't use it often, you should get third party insurance	If you often use your automobile, comprehensive insurance is the best choice
This is mandatory as per the laws	This is not mandatory as per the laws

Third Party Car Insurance - Claim Process

Follow these steps as mentioned below in order to make your third-party car insurance claim:

Fill up the claim application form with your personal and policy details.
An FIR must be filed by the third party at the nearest police station. A copy of the FIR needs to be uploaded along with other necessary documents online.
Submit your application and wait for the insurer to verify the details provided.
The case will be registered with the Motor Accident Claims Tribunal who will decide the compensation amount.
As there is no cap on the amount received as co-compensation for bodily injuries or the death of the victim, the court may determine the sum. In case of damage to third-party property, a maximum sum of ₹7.5 Lakhs can be paid out to the victim.

Things to Consider While Making a Third Party Car Insurance Claim

You must keep the following points in mind while making a third party car insurance claim:

The FIR must be lodged in case of an accident, post which your insurance provider should also be informed about the incident. The claim process shall not be commenced without the aforesaid steps.

The third-party should furnish relevant evidence to prove that you caused the accident.
No coverage limit is set on the personal damages caused to the third party, however, the limit for property damage is capped at ₹7.5 Lakhs.

Conclusion

Having a third-party car insurance cover will protect you against financial and legal third-party liabilities. You must buy it to protect yourself from any unexpected misfortune that may take place.

Check Out Car Insurance Partners Available at Bajaj Markets

Bajaj Allianz Car Insurance

SBI General Car Insurance

HDFC ERGO Car Insurance

Acko Car Insurance

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What is the benefit of third party car insurance?

The third party car insurance plan is mandatory under Indian law and it offers financial security in the event of loss or damage incurred by a third party.

What type of insurance is a third party?

Third party insurance is a basic car insurance policy that covers loss caused to another party.

Can I get zero depreciation cover under my third-party car insurance policy?

No, you cannot purchase a zero depreciation cover with a third-party car insurance. However, you can purchase this add-on cover with a comprehensive car cover or an own-damage car insurance plan.

Is there any eligibility criteria for 3rd party car insurance?

You can get third-party liability insurance for your vehicle if you have a valid driver's licence and it is registered with the local transportation authority.

What is the ultimate compensation offered as part of this policy?

The maximum compensation offered for property damage under Third Party motor insurance is ₹7.5 Lakhs. The compensation for injury or death is decided by the court.

Does a third-party car insurance policy offer sufficient coverage?

Despite being a basic choice for coverage, it provides policyholders with the security of knowing that they have enough financial protection against the harm they could do to others in an accident. The policyholder's financial assets are protected from unintentional hazards by third party car insurance.

If you claim for a third party car insurance, will you lose your NCB?

No Claim Bonus is a reward that is only available in conjunction with Own Damage coverage. This implies that if you just have third-party insurance, you cannot receive the NCB discount on your auto insurance.

Why is it mandatory to purchase third party car insurance in India?

Accidental tragedies often have terrible effects on you, your family, and other people. It may put a strain on your finances and those of the accident victims, including you. As a result, the Indian government made it necessary for car owners to have at least Third Party car insurance.

What does a third-party car insurance plan provide coverage for?

A third-party car insurance policy only covers any third-party liabilities that may arise as a result of your car getting involved in an accident.

How is third-party insurance calculated?

The third party insurance cover compensation amount is calculated by the Insurance Regulatory Authority of India (IRDAI). The compensation amount is calculated keeping two important factors in mind