Third-Party Car Insurance

As per the Motor Vehicles Act of 1988, every car plying on the Indian roads needs to be insured under a basic third party car insurance plan. Besides ensuring compliance with the law, a third-party car insurance plan provides you with a basic coverage umbrella against affordable premiums. This basic insurance plan provides compensation for third-party damages, death or disabilities resulting from accidents involving the insured vehicle. However, while mandatory, a third-party car insurance plan does not cover the damages sustained by the insured car or the driver in the event of a mishap.

READ MORE

✓Save 80% on Premium ✓Zero Depreciation & Accessories Cover ✓Lock & Key Replacement Cover| Buy a Car Insurance Now!

How does Third-Party Car Insurance Work?

A third-party insurance ensures financial security in case your vehicle causes damage to a third party. In case the third party sustains bodily injuries, the insurer will pay for the hospitalisation expenses, loss of income, permanent disability, or death that may arise due to an accident.

 

In the event of property damage, the insurer will compensate for the loss incurred, car wreckage, cost of replacement of the damaged structures, etc. Hence, you can rest assured when it comes to the financial aspect of an accident as third-party insurance has got your back!

How to Buy Third-Party Car Insurance Online at Bajaj Markets

With the following procedure, you can purchase third-party car insurance at Bajaj Marketswith just a few clicks

 

  1. Go to the ‘Car Insurance Premium Calculator’ page on Bajaj Markets.

  2. Choose the type of coverage you need such as the third party car insurance plan.

  3. Input the required details in the application form.

  4. Upload the necessary documents.

  5. Pay the third-party car insurance price online via the available payment modes.

  6. The third party car insurance policy document will be sent to your registered email ID.

With this, you have secured your vehicle with a third-party car insurance policy

Key Importance of Third-Party Insurance

Check out the below list to understand the importance and benefits of 3rd party car insurance:

 

  • It is a mandatory requirement under the Motor Vehicles Act, 1988. So, third-party liability insurance enables you to drive legally on Indian roads.

  • Though it is a basic cover, it offers you peace of mind. You do not have to worry about bearing heavy losses due to an unfortunate mishap.

Third-party insurance covers enough expenses to secure your savings against accidental risks.

 

  • You receive sufficient financial protection at affordable premiums.

Let’s understand the above points in brief:

 

Third-party liability insurance plays a vital role in case your insured car hits another vehicle. It is ideally impossible to determine the level of damage any accident would cause. In extreme cases, it may lead to the death of a third person involved as well. During such scenarios, the victim of the unfortunate accident can raise a claim on your third-party car insurance plan for compensation. If you don’t have a third-party insurance plan, compensating for the loss incurred by the third party could eat up your savings.

 

With cheap third-party car insurance, you can gain coverage for any liability claim raised for bodily injuries, property damage, or the death of the victim. According to the Insurance Regulatory and Development Authority of India (IRDAI), there is no cap limit for compensation in the event of the death of a person. However, property damage coverage is up to ₹7.5 lakh.

Benefits and Features of Third-Party Car Insurance

Some of the important benefits and features of third-party car insurance are:

 

  • Third-party car insurance price is comparatively lower than comprehensive car insurance price. 

  • It covers damages to both third-party vehicles and third-party property.

  • Personal accident cover is included under the third-party car insurance cost.

  • Injuries to or death of the third party are covered in the policy. 

Inclusions of Third-Party Car Insurance

When you buy third-party car insurance, it covers the following things:

1. Damage to Third Party

Sometimes, accidents lead to bodily injuries or death (in extreme situations) of the third party. Third-party car insurance ensures that such cases are covered. The insurer will compensate for the hospitalisation expenses and other losses that may arise because of it.

2. Damage to Third-Party Property

Accidents generally lead to third-party property damage. Hence, the policy covers the insured against damage/loss caused to other people’s vehicles, houses, or property. The compensation for the same is up to ₹7.5 lakh.

3. Personal Accidental Cover

Most insurers in India offer personal accidental cover on third-party car insurance plans. With this cover, the insurer will financially compensate for the loss incurred by the insured in an accident.

Exclusions of Third-Party Car Insuranc

When you buy 3rd party car insurance online, it does not cover the following things:

1. Damage to Own Vehicle

The policy does not cover the damages incurred by the insured vehicle in case of accidents, theft, or loss due to man-made and natural disasters.

2. Drunk Driving or Overspeeding

The policy will not cover the damages caused to the third party and their properties in case of a drunk driving situation

3. Driving Without a Valid Driver’s Licence

Insured individuals cannot raise third-party insurance claims if they do not have a valid driving licence.

Third-Party Car Insurance Vs Comprehensive Car Insurance

When compared to third-party car insurance, comprehensive insurance offers maximum protection from various perils. The third-party insurance rate is lower compared to the comprehensive one. Be it a man-made/natural calamity, theft, or accident, comprehensive car insurance has you covered. So, let’s compare a third-party cover and comprehensive plan to understand both plans:

Factors

Third-Party Car Insurance

Comprehensive Car Insurance

Coverage

Secures against third-party liabilities

Protects you against theft, man-made calamities, own damage, and third-party liabilities

Premium Rate

Third-party car insurance is the most affordable car insurance plan

Though comprehensive insurance policy has a higher premium, it offers extensive coverage

Customisation

You cannot customise the third-party car insurance

You can easily customise your comprehensive policy with add-on covers for better protection

Suitability

Third-party car insurance is suitable for you in case you do not drive your car frequently or if it's old

Comprehensive car insurance is the best option if you use your vehicle regularly

How to Claim for Third-Party Car Insurance

To make a four-wheeler insurance (third-party) claim, here’s a step-by-step method

 

  1. Register your claim request at Bajaj Markets at the earliest.

  2. Fill up the claim application form with your personal and policy details.

  3. 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.

  4. Submit your application and wait for the insurer to verify the details provided.

  5. The case will be registered with the Motor Accident Claims Tribunal who will decide the compensation amount.

  6. As there is no cap on the amount you receive 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 lakh can be paid out to the victim.

Points to Keep in Mind While Raising a Third-Party Car Insurance Claim

Here are a few things you must keep in mind while making a third-party 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.

  • It is always recommended to settle minor damages and losses outside the court since the procedure of filing an FIR can be time-consuming.

  • 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 lakh.

Conclusion

Besides being mandated by law, third-party car insurance keeps you protected against all third-party liabilities. If you consider the third-party car insurance rates, we can easily say they are the most affordable car insurance plan available in the market. Also, remember third-party car insurance renewal is as important as buying a new one since an expired insurance can invite penalties or imprisonment. 

 

However, to enjoy extensive coverage against several unfortunate perils, you can opt for a comprehensive car insurance plan. Estimate the premium for comprehensive car insurance with our car insurance premium calculator now!

 

Browse the best car insurance companies' policies at Bajaj Markets online to get your money’s worth! Furthermore, you can personalise your insurance plan with lucrative add-ons, experience hassle-free claim settlements and more with us.

FAQs on Third-Party Car Insurance

  • ✔️What is the benefit of third-party car insurance?

    The third-party car insurance plan 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.