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Securing third-party car insurance helps you cover the cost of damage or loss incurred by a third-party vehicle or individual. On Bajaj Markets, you can explore plans from top providers offering substantial coverage. Premiums start at just ₹2,094.

 

Operating a car without valid car insurance can lead to severe penalties, including substantial fines and even imprisonment. After a thorough comparison and review, get the best insurance policy that meets your needs today.

Third-Party Car Insurance Plans and Premiums

On Bajaj Markets, you can find numerous third-party car insurance providers. This grants you the opportunity to explore various options and compare their features, premiums, and benefits. This will allow you to select the policy that aligns with your specific needs.

 

Here is a table with some of the best insurance plans and their details: 

Insurance Provider

Claim Settlement Ratio

Cashless Garage

SBI General Car Insurance

98.00%

7,200+ Network Garages

HDFC ERGO Car Insurance

99.00%

8,200+ Network Garages

Bajaj Allianz Car Insurance

98.54%

4,000+ Network Garages

TATA AIG Car Insurance

99.00%

7,500+ Network Garages

Disclaimer: The above-mentioned information is subject to change as per the latest updates of insurance providers.

Third-Party Car Insurance Premium Rates

The premium for this type of car insurance is decided by the RBI based on a number of factors, including the engine capacity. Refer to the following table to know the latest prices of third-party car insurance available on Bajaj Markets:

Vehicle Type

Third Party Premium
(Financial Year 2022-23, effective April, 2022)

Not exceeding 1000 CC

₹2,094

Exceeding 1000 CC but not exceeding 1500 CC

₹3,416

Exceeding 1500 CC

₹7,897

Disclaimer: These premium rates are valid as of April 2024. These are decided by IRDAI and are subject to change as per recent updates and revisions.

Features and Benefits of Third-Party Car Insurance

Here are some advantages of this type of four-wheeler insurance:

Legal Coverage

With a third-party car insurance policy, you are protected against legal liability in the case of death or disability to any individual. Damage to a third-party vehicle or property is also covered. 

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Moreover, third-party insurance is mandatory as per the Motor Vehicles Act of 1988. So, valid insurance will protect you from the legal repercussions of not adhering to the law.

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Quick and Easy Procedure

You can easily purchase or renew third-party car insurance online and access it conveniently. Since these policies are available digitally, the application process is quick and simple. You can complete Read More it through your internet-enabled device on the go. Read Less

Fixed Premium

In third-party car insurance, the Insurance Regulatory and Development Authority (IRDAI) decides the premium amount based on the vehicle type and engine capacity. This helps ensure that you do not have Read More to pay extraordinarily high premiums. So, you get adequate coverage without straining your budget. Read Less

Availability of Cover 24x7

Third-party car insurance policies stand out because you can easily access them online anytime, anywhere. This is different from some other policies that require traditional offline methods for renewal or application.

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This accessibility and flexibility play a significant role in their widespread popularity. In addition, you can request a claim 24x7, whenever and whenever required.

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Financial Assistance

With third-party car insurance policies, you find peace of mind in situations where financial obligations can be overwhelming. This is because you do not need to compensate for the damages on the spot or by paying a lump sum. 

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It is the responsibility of the insurance company to provide the compensation. Therefore, instead of stressing over unexpected expenses, you can focus on immediate relief and coping with the unfortunate incident.

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Personal Accident Coverage

 

By insuring your car, you could get personal accident coverage. In the event that the insured sustains a physical injury, passes away, or becomes disabled while operating the car, the insurance pays out.

Importance of Third-Party Car Insurance

As mentioned, according to the Motor Vehicles Act of 1988, all vehicle owners in India must have at least third-party car insurance to drive. However, insurance serves a broader purpose than just legal compliance.

Every time you drive, there is a chance of an accident. In such situations, you may damage your vehicle as well as the other driver's vehicle. In severe cases, such accidents can even cause injury or death. 

 

The costs related to these can be high and cause financial strain during an already emotionally stressful period. You can purchase motor insurance policies to reduce financial liability and, thereby, financial stress in such cases. 

 

This insurance covers any damages caused to a third-party individual or vehicle. It is your responsibility to protect yourself and other parties to whom you may inflict harm. Therefore, purchasing this type of car insurance becomes essential to address any harm or damage that may affect another individual or their property in an accident involving your vehicle. 

 

Third-party car insurance offers one of the most affordable insurance options, even though it does not cover damages to your vehicle. It protects you from paying a substantial amount as compensation for damages caused to third parties in an accident involving your car.

 

In addition to the monetary benefits, many insurance companies also offer legal support for defence proceedings in a court of law if necessary.

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Third-Party Car Insurance Premium Rates for Electric Cars

Insurance for an electric car is also compulsory in India under the provisions of The Motor Vehicles Act of 1988. It provides coverage for your electric vehicle, safeguarding you against financial losses in emergencies involving your car.

 

Refer to the table given below to know the premiums you need to pay for third-party car insurance for an electric car:

Vehicle Type

Premium for 1 Year Plan

Premium for 3-5 Years plan

Not exceeding 30 KW

₹1,780

₹5,543

Exceeding 30 KW but not exceeding 65 KW

₹2,904

₹9,044

Exceeding 65 KW

₹6,712

₹20,907

Disclaimer: The premium are current as of April 2024. These are decided by IRDAI and are subject to change as per the recent updates and revisions. 

Inclusions Under Third-Party Car Insurance

A third-party car insurance policy provides cover for the following:

1. Third-Party Liability

The car insurance policy covers the financial liabilities that arise from the physical injury or death of a third party. This includes passengers and pedestrians who are affected due to an accident caused by your insured vehicle.

2. Property Damage

It provides coverage for damages caused to third-party properties, such as another person's car, fence, or any other structure.

3. Legal Expenses

This car insurance also covers legal expenses incurred in defending against third-party claims and lawsuits, if any, related to the accident.

4. Personal Accident (PA) Cover

Some policies may include a PA cover as an add-on facility. With this, you get compensation in the case of permanent disability or death due to an accident. Note that, like third-party cover, getting a PA is also mandatory as per the Motor Vehicles Act of 1988.

Exclusions Under Third-Party Car Insurance

Here is what is excluded from third-party car insurance plan:

1. Own Vehicle Damage

The primary limitation of this type of car insurance is that it does not cover damages to your vehicle in the case of an accident. You need a comprehensive car insurance policy for such coverage. 

 

You also get standalone damage insurance along with third-party insurance. However, managing two policies can be tiresome.

2. Personal Injuries

This type of car insurance also does not cover injuries to you or any passengers in your insured vehicle during an accident.

3. Non-Accident-Related Damages

Damages caused to your insured vehicle due to non-accident-related incidents are not covered under third-party car insurance.

4. Driving Under the Influence of Substances

If you were driving under the influence of alcohol or drugs at the time of the accident, the insurer can reject your claim.

5. Wars and Nuclear Risks

Most insurance companies also do not cover any damage caused to a third-party person or property due to war and nuclear risks. 

6. Speed Testing and Organised Racing

The insurer can reject your claim for insurance in case your car has been involved in speed testing, organised racing, and other such activities.

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How to Claim Third-Party Car Insurance

Here is a step-by-step guide on claiming your third-party car insurance:

1. Inform the Insurance Company

You should notify the insurance company about the incident and your intention to make a claim. You can do this by contacting the insurance company's claims department and providing relevant details of the incident.

 

Ensure that you disclose all the information to the insurance company to avoid any complications later and to speed up the claim settlement.

2. File an FIR with the Police

You need to inform the police about the accident immediately and file a First Information Report (FIR), in some cases, to claim the insurance. An FIR is necessary in cases of road accidents, theft or fire. 

 

You may not need an FIR for minor dents and scratches, but you will require it when a third party is involved in the accident.

3. Take Pictures for Evidence

Ensure that you take sufficient photographs of the damage on the vehicle and the accident site. You must also make sure that the images are clear and show the damages visibly. This will allow the insurance company to assess the physical damages and settle the claim appropriately and quickly.

4. Submit Your Claim

To initiate the claim process, you also need to fill out the required claim forms provided by the insurance company. These forms usually require detailed information about the incident, the damages or injuries, and the amount of compensation you wish to claim. File the claim within the timeline stipulated by the insurer to avoid rejections.

5. Provide Necessary Documents 

You need to provide certain documents to the insurance company. Ensure that you check the requirements carefully and submit these documents on time for a smooth and quick claim settlement.

 

You may need to provide the following documents while claiming your car insurance:

  • Copy of the third-party car insurance policy

  • Copy of your and the other driver’s driving licence

  • Copy of the Registration Certificate (RC) of your car

  • Duly filled and signed claim form

  • The First Information Report (FIR) from the police, if required

  • Original cash receipts, repair bills, etc.

  • Medical receipts in case of physical injuries

 

The insurer can ask for additional documents if required. They will likely communicate this via call, message, or email. So, regularly check these to submit the paperwork on time.

6. Wait for the Investigation and Evaluation

The insurance company will investigate the claim to determine its validity and the extent of the damages before approving it. They may ask you to submit some additional documentation for verification. 

 

In addition, they can even interview you, witnesses, or other involved parties. After the investigation, the insurance company will assess the claim and decide on a suitable compensation amount.

7. Final Settlement or Adjudication

After the evaluation, the insurance company will offer a settlement. If you agree to the settlement amount, the claim will be resolved. 

 

However, if an agreement cannot be reached, the claim will move to litigation. Here a court or arbitrator will make the final decision on the claim of your car insurance.

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Third-Party Car Insurance Vs Comprehensive Car Insurance Plan

Here are the main differences between comprehensive and third-party car insurance:

Parameters

Third-Party Car Insurance

Comprehensive Car Insurance

Meaning

This basic car insurance plan only covers damages and losses your car could cause to any third-party person, vehicle, or property.

This is a comprehensive cover for your car, which addresses your third-party liabilities and provides coverage for you and your car.

Coverage

It provides coverage only for third-party damages and losses. 

This policy provides broad coverage, protecting you against damage and losses to you and your vehicle.

Premium Payments

The premium price for this policy is cheaper than a comprehensive car insurance policy. The IRDAI predetermines it based on your car's engine capacity.

The premium price is comparatively more expensive. It is determined by various factors, including the city you drive your car in, the make and model of your car, and the add-ons.

Add-ons

You cannot make any customisations under this type of car insurance plan.

Under this type of policy, it is possible to customise the plan. You can include specific add-ons and covers.

Benefits

It provides protection if you unintentionally injure someone on the road or damage someone's vehicle or property. This ensures that you will not have to bear the financial burden in such situations.

It provides coverage for the damages to your car and damages to third parties, ensuring you will not incur any financial stress.

Disadvantages

This type of policy does not cover damages to your vehicle.

This type of insurance is more expensive as compared to third-party car insurance.

Legal Requirements

You need to have this type of policy to drive in India.

You do not need a comprehensive policy. You can buy it depending on your personal requirements.

Ideal Situations

If you drive an old car or drive rarely, then getting basic third-party insurance would be ideal.

This plan is more advantageous for your and other’s safety as it offers comprehensive coverage. Also, you can benefit from a No Claim Bonus discount during renewals, even if you do not make any claims in a year.

Things to Consider While Making a Third-Party Car Insurance Claim

Here are some key factors that you must pay attention to while claiming your third-party car insurance:

1. Claim From Another Party

Sometimes, your car may sustain damage because of someone else's mistake. If this happens, you must seek third-party insurance from them. 

2. Full Disclosure

Make sure that you share all the important information with your third-party car insurance company to claim the insurance without any problems. It is essential not to keep any critical details to yourself. If you do not disclose all the details, the company could deny your claim.

3. Claim-Related Documents

Ensure you carefully review all the related documents before filing a claim. It is essential to understand every detail in the policy document. When filling out the claim form, be diligent and provide accurate information. Double-check all the details after completing it. 

 

Even small mistakes, like an incorrect address or name, could cause unnecessary delays in settling your car insurance claim. In some cases, the insurer may even reject your claim.

4. Filing an FIR

To claim car insurance, you also need to file an FIR in some cases. In the case of an accident, you must do this immediately. You need to provide a copy of this FIR when you file a claim for your car insurance from the company. 

5. File the Claim on Time

Insurance companies have set timelines within which you must inform them of the accident and file your claim. If you miss the deadline, the claim may be rejected or delayed. Note that the insurer may let go of the timelines in the case of a severe accident. 

 

If you are unsure about any of this, contact your insurer. You can also check your policy document, and visit the official website or office to confirm the same.

 

By providing the benefits of legal compliance and financial protection, third-party car insurance is an indispensable investment for your vehicle. It also provides you with peace of mind since you know your car is adequately covered in the unfortunate event of damage or accidents.

 

On Bajaj Markets, you can explore some of the cheapest third-party car insurance plans and choose one that matches your needs. Get insurance with minimal formalities and secure your finances.

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.

FAQs on Third-Party Car Insurance

What is the benefit of third-party car insurance?

It offers protection against damages or losses to a third-party vehicle, individual, or property. In addition, it is mandatory under Indian law.

What type of insurance is a third-party car insurance?

Third-party car insurance is a basic policy that covers loss caused to another party. It does not cover damages caused to your vehicle or injuries sustained by you.

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

No. 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 third-party car insurance?

You can get third-party liability insurance if your car is registered in your name.

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

The maximum compensation offered for property damage under third-party car insurance is ₹7.5 Lakhs. If the court decides on a compensation amount above this amount, then you need to pay it out of pocket.

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

Whether the coverage is enough or not depends on your requirements. If you rarely drive, then it should be enough. However, if you drive your car frequently, a comprehensive plan may be more suitable. This is because it offers broader coverage than a third-party plan. 

 

Before you buy any policy, compare your options and research about the insurer. This will help you choose a plan and company that offers the cover and service you need.

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

No, you will not lose your No Claim Bonus or NCB if you choose to claim your third-party car insurance. This is because NCB on premiums is only available in the case of comprehensive car insurance policies or Own Damage policies.

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

Accidents can cause financial and emotional strain for you and the other persons involved in the incident. This insurance will help ensure that adequate medical care is provided and the damage is repaired.

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 an accident.

How is the cover of your third-party car insurance calculated?

The cover amount of your third-party car insurance is calculated by the Insurance Regulatory Authority of India (IRDAI). The compensation amount is calculated based on the cubic or engine capacity of the car causing the accident. It also depends on the make and model of the car.

Do I have to pay a fine to drive my vehicle without third-party motor vehicle insurance?

Yes, driving a vehicle without at least a third-party liability cover is illegal in India. You will have to pay a penalty or face imprisonment or both.

How much does a third-party car insurance cost?

You can purchase third-party car insurance on Bajaj Markets starting at just ₹2,094.

Which is the best third-party car insurance?

The right third-party car insurance for you depends on your requirements, preferences and affordability. While selecting car insurance, check the claim settlement ratio, premium amounts, coverage and other information thoroughly to see if the plan is ideal.

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