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Third Party Car Insurance
Third-party liability insurance for your four-wheeler protects you against third party damage to property, financial loss, or legal or accidental liability. You also get protection in case of a third-party death injury that was caused due to an accident involving your vehicle. However, it does not safeguard your own vehicle damages
As per the Motor Vehicles Act, 1988, third-party insurance is compulsory for all vehicles in use on the roads in India. Vehicle owners who do not possess this basic insurance are eligible for heavy fines and even imprisonment. This insurance policy can be conveniently purchased online from any insurance company.
Why Do You Need Third-Party Vehicle Insurance?
If you are a car owner you are legally bound to buy a four-wheeler third-party insurance policy because the policy is obligatory as per the Motor Vehicles Act, 1988. Without a legitimate third-party insurance policy, you can suffer heavy penalties and your driving license can be confiscated.
On the other hand, because third-party insurance is cost-effective it saves you from legal and financial losses, hassles during mishaps, and combined with a personal accident cover it can safeguard your own damages as well.
Key Features And Benefits Of Third-Party Vehicle Insurance Policy
- Legal cover and financial assistance – With a third-party insurance policy you will get financial protection in case of damage to the third-party vehicle or property and disability or death of a third party. With such protection, you can be sure you won’t face any financial or legal cases as the policy takes care of it.
- Easily available – As it’s mandatory by law, such type of insurance is easily accessible, and you can buy or renew it online with just a few clicks.
- Cost-effective – The premiums for a third-party insurance plan are highly affordable and made to suit the pocket of a larger crowd.
- Peace of mind – In the case of an unfortunate event, third-party insurance ensures you have peace of mind as you need not worry about expenses or any legal action. Your policy will take care of such things hence, you will get immediate relief.
How Does Third-Party Insurance Work?
In the event of an accident, the insured must immediately report the same to the auto insurance company and show the FIR if needed.
The policyholder must file a claim with the insurer on the prescribed form with the necessary documents and information. Some of them include:
- Report the accident along with date and time
- Policy and insurance data
- Injuries suffered by the driver and passengers
- Damage to property or vehicle
- Names of witnesses, if any
- The weather conditions when the accident occurred
- Photographs of the scene of the accident
The insurer will appoint a surveyor to assess the accident consequences and validate the approximate repair costs, after which the insurance company will settle the claim.
What Does Third-Party Insurance Include?
A few inclusions of third-party insurance are:
- Injury to the third party – The liability compensation in case of injury or death to the third party is unlimited based on the FIR lodged with the Motor Accidents Claims Tribunal. The insurance company will bear the legal accountability
- Property loss – According to the IRDA ruling, damage up to Rs 7.5 lakhs is covered.
- Support for the owner (personal accident cover) – This protects you from injury due to an accident. However, the compensation applies only if the vehicle is registered in your name (owner-driver in possession of a valid driving license).
Compensation covered by third-party insurance protection is as given below
|NATURE OF INJURY||SCALE OF COMPENSATION|
|Loss of two limbs or sight of two eyes or one limb or sight of one eye||50%|
|Loss of one limb or sight of one eye||50%|
|Permanent total disablement from injuries other than the one’s named above||100%|
Some of the additional benefits provided by third-party auto insurance companies include:
- Personal accident cover for owner-driver for INR 15 lakhs
- Personal accident cover for co-passengers for INR 2 lakhs
- Personal accident cover for paid or hired driver of the car.
Some Common Exclusions Of Third-Party Insurance
Remember, every policy has certain exclusions, and keeping them in mind will come in handy at some point.
- The safeguard is not for a hired driver, that is if the driver of the vehicle is not the owner.
- Damage caused by war, radioactive or nuclear contamination is not included.
- Any accident outside the specific geographical boundary.
- Claims arising out of ambiguity in your car insurance documents.
- Driving without a license or driving under the influence of alcohol.
- A learner’s license holder driving the vehicle without a valid driving license-holder in the front passenger seat.
Comprehensive Car Insurance vs Third-Party Car Insurance
|Third-party Liability only insurance||Comprehensive insurance|
|Only protects third-party liability, not damage caused to your own vehicle.||The comprehensive plan covers third-party liability and own vehicle damage, including theft.|
|Mandatory as per Motor Vehicles Act, 1988||Optional|
|IRDAI fixes a basic (low) premium for all Insurance companies depending on the CC value of the vehicle’s engine||Premium is decided by different insurance companies. It is higher than third party premiums|
· Add-on (only the following)
· * For personal accident for a value of INR 15 lakhs
· * For personal accident cover for co-passengers for a value of INR 2 lakhs
· * For personal accident cover for paid or hired driver of the car
|A wide range of add-ons are available|
|No premium discounts are available||A range of discounts are available including no claim bonus|
Reasons Why Probus Should Be Your First Choice
Here are the many reasons you should pick Probus:
- Probus has the expertise in dealing with all insurance-related issues including vehicle Insurance.
- Probus aids in the choice of the insurance plan that suits you. The Probus team of experts is always available to clear any queries you have regarding your vehicle insurance policy or such similar processes
- Purchasing an online insurance policy for your vehicle from Probus makes the process stress-free, economical with easy renewal options, simple claim assistance and the added benefit of online discounts.
- Probus encourages its clients to access its online insurance premium calculator absolutely free and offers valuable information on discounts to save on premiums
- The Probus claims assistance team is IRDA certified and adept in the procedure of filing claims, making the process seem simple .
- Instead of spending precious time checking out different vehicle insurance offers, customers can register directly with Probus on its website and be guided effortlessly to buy the best vehicle insurance online.
Trust Probus To Help Purchase Third-Party Car Insurance Online
Follow these simple and easy steps to purchase third-party car insurance on the Probus portal.
- Log onto the Probus website
- Choose car insurance from the screen (Make sure to have details about your car handy)
- Enter the details being asked about your car
- Choose the required type of policy
- Enter a few more details for a precise quote
- Decide on the insurance provider of your choice after comparing plans from different insurance companies.
- Make the online payment using any secure online payment service
- Your policy document will reach your inbox right away.
How Is Third-Party Car Insurance Premium Calculated?
For third-party car insurance premiums, you can basically check the pre-decided
premiums planned by the Insurance Regulatory and Development Authority of India (IRDAI). It is dependent on the capacity of the vehicle engine plus 18% GST which will help you arrive at the premium.
|No.||Description of Vehicle Class||Premium with effect from 16th June 2019 (Rs.)|
|Not exceeding 1000 cc||2,072|
|Exceeding 1000 cc but not exceeding 1500 cc||3,221|
|Exceeding 1500 cc||7,890|
*Source: IRDAI website – On premium rates for motor third party liability insurance cover for the financial year 2019-20 effective from 16th June 2019)
Frequently Asked Questions
1. After an accident, within how many days does a third-party insurance claim have to be made?
You must report the accident right away. Insurance companies have round-the-clock provisions for the same.
2. If I claim third-party car insurance, will I lose my NCB?
No. Your No Claim Bonus will stay as it is.
3. If the accident happened when someone else was driving my car am I entitled to an insurance cover?
No matter who was driving the car when the accident happened you are entitled to the third-party cover provided the driver possesses a valid license or even if they have a learner’s license but were accompanied by a valid license holder on the passenger seat, your claim will be honored.
4. Is it sufficient to buy only third-party insurance for my car?
Third-party insurance covers only the third party liabilities. For protection from all other kinds of damage to your own car or yourself, you need to buy a comprehensive insurance plan.
5. What is the maximum compensation offered as part of third-party insurance?
In the case of personal damages to a third party, there is no maximum compensation whereas, in the case of property or vehicle damages of a third party, the maximum compensation may amount to Rs 7.5 lakh.