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  • Third Party Liability Car Insurance

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    A third-party liability car insurance policy is an agreement between the insurer and the insured (vehicle’s owner) where the insurer promises to offer financial protection to the insured against third-party liabilities arising due to a mishap in exchange for a fixed amount called premium.

    There are a number of general insurers providing third-party car insurance plans, including the auto dealers who as of recently have been recognised by the Insurance Regulatory and Development Authority of India (IRDAI) as authorised Motor Insurance Service Providers (MISPs).

    Key Benefits and Features of Third-Party Liability Car Insurance Policy

    Third-party liability car insurance comes with a number of features and benefits such as:

    • Offers financial support in the event of a mishap involving a third-party and protects you against the third-party liabilities that may arise
    • Provides tax benefits to the policyholders
    • Can be easily purchased via insurer or third-party insurance websites
    • Available at low premium rates

    Inclusions and Exclusions of a Third-Party Liability Car Insurance

    Third-party liability car insurance comes with certain inclusions and exclusions.

    • Inclusions:

    The following are the inclusions of a third-party liability cover:

    • Protects against the liabilities arising from external property damage due to the mishap.
    • Offers protection against the liabilities arising from the damage/loss to a third-party vehicle involved in the mishap.
    • Protects against the liabilities that arise from injuries/personal loss to the third-party involved in the mishap.
    • Personal Accident cover is being offered as an add-on for third-party liability cover by a few insurers. This add-on will extend the third-party insurance coverage to the insured in case of injuries/personal loss.
    • Exclusions:

    The following are the exclusions of a third-party liability cover:

    • The insurance cover will not be applicable in case you were driving under the influence of alcohol or drugs when the mishap took place.
    • The insurance cover will not be applicable in case you raise fraudulent claims and/or stage mishaps.
    • If the person driving the vehicle is underage or doesn’t have a valid driving licence, the insurance cover will become void.
    • If the person broke traffic rules while driving, the insurance cover will become void.
    • If you use a commercial vehicle for private reasons or vice-versa, your insurance claim will be denied.
    • Third-party liability cover does not include own damage cover, which means that liabilities arising due to damage to your vehicle or injuries to you will not be covered.
    • In case your insurance policy expires or you fail to renew your insurance policy on time, your insurance claim will be denied.
    • Liabilities arising due to regular wear and tear of your car as a result of aging is not covered.
    • Liabilities arising due to electrical and/or mechanical failures are not covered.
    • If the mishap took place outside of the agreed geographical location, your insurance claim will be denied.

    Third-Party Car Insurance Premium

    Third-party car insurance premiums are fixed and published by the IRDAI annually based on the cubic capacity (cc) of the vehicle’s engine.

    The basic third-party liability insurance premium for private cars for the fiscal year 2017-18 are as follows:

    Private cars with their engine capacity (cc) Basic third-party car insurance premium (1st April 2017-31st March 2018)
    Less or equal to 1000 cc 6,396
    More than 1000 cc but less or equal to 1500 cc 8,408
    More than 1500 cc 11,144

    Insurance claim process for third-party liability cover

    The steps involved in the claim process for third-party liability cover are standard across all insurers and are as follows:

    1. Intimate the insurer as soon as the mishap takes place and raise a third-party liability claim.
    2. Inform the insurer about the liabilities that have arisen due to the mishap in a written letter.
    3. Lodge an FIR at the nearest police station and obtain a copy of the same.
    4. Collect details of the third-party and his/her vehicle involved in the accident, contact details of the witnesses, if any, and necessary documents as requested by the insurer.
    5. An authorised surveyor will be sent to carry out an incident survey to assess the loss/damage.
    6. Submit a duly signed and filled claim form along with the requested documents to the authorised surveyor.
    7. File a case at the nearest Motor Accident Claims Tribunal (MACT) court with the assistance of your lawyer.
    8. The court will send you a date for the hearing. Attend the hearing with your lawyer. Based on the court's ruling, you may/may not have to pay towards the third-party liabilities.

    Third-party Liability Car Insurance FAQs:

    1. Can anyone buy a third-party liability car insurance policy?

      Yes, anyone who owns a car that is officially registered in his/her name can buy a third-party liability cover.

    2. Can I port the existing third-party liability car insurance to another insurer?

      Yes, you can port your existing insurance policy to another insurer after submitting a duly filled portability form to your present insurer at least 45 days before the policy expires.

    3. Do I have to buy a third-party liability cover even if I am a good driver?

      Yes, it is an absolute necessity as per the Motor Vehicle Act to purchase at least a third-party liability car insurance in India regardless of whether or not you are a good driver.

    4. What is the maximum compensation I can avail under a third-party liability car insurance?

      In case of third-party injuries or loss of life, there is no limit on the compensation at present. But when it comes to third-party property damage, the maximum compensation you can avail is Rs.7.5 lakh.

    5. How long after the mishap happens should I register for a third-party liability claim?

      You have to inform the insurer as soon as the mishap happens and raise a third-party liability claim request. You also have to file a case in the nearest Motor Accident Claims Tribunal (MACT) court within a period of 60 days from the date of mishap.

    News & Important Update On Third Party Car Insurance

    • IRDAI directs insurers to offer long-term third-party insurance

      The Insurance Regulatory and Development Authority of India (IRDAI) directed general insurance companies to offer three-year insurance plans to new car owners and five-year insurance plans to new two-wheeler owners. The regulation came in after the Supreme Court made long-term third-party insurance policies mandatory. Previously, only annual third-party insurance plans were made mandatory in order to ensure victims of road accidents are provided with financial aid. However, most insured individuals tend to forget to renew their policies. Therefore, only about 1/3rd i.e. 6 crore out of 18 crore vehicle owners actually have insurance policies. The insurance companies welcome the new regulation and will soon offer long-term insurance plans at revised premium rates. While the new rule will increase insurance penetration and keep vehicle owners insured for a longer period, the insurance policies will cost much more for the people. While average-prices two-wheelers will require owners to pay affordable premiums, car owners will have to shell out a lot more. According to a report, the approximate long-term insurance premium for a 350+ cc bike is Rs.13,034 but for a 1,500+ cc car is Rs.24,305.

      11 September 2018

    Third Party Liability Car Insurance Reviews

    • Bajaj Allianz Car Insurance
      "Good Policy"
      0.5 4.0/5 "Great!"
      Policy coverage is good in Bajaj Allianz, I got good premium with better coverage available in the market , I have Hyundai grand drive assure car which has third party cover, with 24 hours service. And they have wider network across in India.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 16, 2018
    • HDFC Ergo Car Insurance
      "Best Insurance"
      0.5 4.0/5 "Great!"
      I thought to have car policy from HDFC Ergo for the mandatory purpose, the insurer dispatched the documents to my home on time. Based on the year of manufacturing HDFC Ergo gave me the basic third party liability cover. I appreciate HDFC has a good name in the market.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 16, 2018
    • HDFC Ergo Car Insurance
      "Its excellent policy"
      0.5 5.0/5 "Blown Away!"
      I have compared ten insurance companies in the market, I found HDFC Ergo is good in terms of premium amount and coverage. They are providing NCB features, I have taken Silver plan its a third party plan with 24 hours service and road side assistance.
      Was this review helpful? 0
      , ghaziabad
      Reviewed on Oct 15, 2018
    • review Car Insurance
      "Average policy"
      0.5 3.0/5 "Satisfactory"
      The car showroom people has provided the insurance policy with United India while i purchase the policy. This is a third party insurance hence they have charged very less like Rs. 4000 for a premium amount. I have no idea about the policy details. I'm not interested to continue the policy with this company.
      Was this review helpful? 0
      , guntur
      Reviewed on Oct 14, 2018
    • review Car Insurance
      "Convenient policy"
      0.5 4.0/5 "Great!"
      There is no particular reason for not continued the policy with them. Because of the convenient i took the policy from ICICI Lombard. Just through online search, i have taken this policy. I never called the cusotmer. This is a third party insurance. I have used the same company for 8 years for my car.
      Was this review helpful? 0
      , vasco
      Reviewed on Oct 14, 2018
    • Bharti Axa Car Insurance
      "Very nice policy"
      0.5 5.0/5 "Blown Away!"
      Right now this is the first time i have selected the policy with Bharti Axa since its convenient to me. About few months i took this policy. I have no idea about the coverage amount. This is a third party insurance which covers driver and car. I have not interacted with the call centre. The documentation process is easy.
      Was this review helpful? 0
      , vasco
      Reviewed on Oct 14, 2018
    • HDFC Ergo Car Insurance
      "Best policy for the Medium cars"
      0.5 3.0/5 "Satisfactory"
      I have not used the insurance still now. I was not getting any additional benefits like bumper to bumper services. I don't usage it right now. There was a added advantage of road side assistance but they have informed me about the elaborate description and they have to mentioned the concern contact details. This is a third party insurance. By January month, i have purchased this policy. The policy coverage is not that much high compared to other companies however the premium amount is decent.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 14, 2018
    • New India Car Insurance
      "Needs lots of improvement "
      0.5 2.0/5 "Expected more"
      I didn't use my claim but I believe for the claim process has lots of documentation. There was no proper customer service. The coverage was below average, when my car got small hit by auto on right side and the third party guy with the bike got hit on left side. When I went for third party claim, they didn't give reimbursement, the communication and transparency should be there.
      Was this review helpful? 0
      , purnia
      Reviewed on Oct 12, 2018
    • Bajaj Allianz Car Insurance
      "Its good "
      0.5 4.0/5 "Great!"
      Bajaj Allianz claim settle ratio is fine hence I have availed car policy, earlier I had reliance it doesn't have good ratio on claim and also Bajaj Allianz has third party covers. Who have activated my policy on time, I received the soft copy but I didn't get the hard copy of my documents.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 12, 2018
    • Iffco Tokio Car Insurance
      "Better Policy"
      0.5 3.0/5 "Satisfactory"
      It was least in the market, the coverage value is also good in Iffco Tokio, I have taken the auto protection plan it means bumper to bumper cover includes the metal parts with third party damage cover includes theft, loss and other calamities.
      Was this review helpful? 0
      , bangalore
      Reviewed on Oct 12, 2018
    • HDFC Ergo Car Insurance
      "Reputed Insurance"
      0.5 5.0/5 "Blown Away!"
      HDFC has good reputation in the market, I heard about that company than I availed car insurance from them. I promptly got the hard copy and also its easy to download the soft copy. They gave me usual coverage for the Premium of Rs. 6200. It has third party cover for man made calamity, natural calamity, theft, loss, damage etc.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 12, 2018
    • Royal Sundaram Car Insurance
      "Good with better coverage"
      0.5 4.0/5 "Great!"
      I have taken any service so far based on the process and activation time I feel Royal Sundaram is good. I paid the premium amt around Rs. 7800 for the tenure of one year. Its covers third party insurance and major parts of vehicle. I would like to suggest them after taking insurance, their customer support people should call back to resolve customer queries.
      Was this review helpful? 0
      , jabalpur
      Reviewed on Oct 11, 2018
    • Royal Sundaram Car Insurance
      "Best"
      0.5 4.0/5 "Great!"
      This is my 2nd renewal policy with Royal Sundaram. Since the service is good i have chosen this policy. I have paid a premium amount of Rs. 11000 and i have got a coverage amount of Rs. 4.5 lakhs and I'm happy about it. February month, i have purchased this car insurance. Its covered with a bumper to bumper facility. This is covered with third party insurance.
      Was this review helpful? 0
      , tiruchirapalli
      Reviewed on Oct 11, 2018
    • Royal Sundaram Car Insurance
      "Good for Four wheeler"
      0.5 5.0/5 "Blown Away!"
      Royal Sundaram proved that time is precious, they have reached me very quickly on car insurance. The approaching time is good and they are very customer friendly. The cost of policy is also economic I took the plan for one year policy with road side assist and third party cover.
      Was this review helpful? 0
      , thiruvallur
      Reviewed on Oct 11, 2018
    • New India Car Insurance
      "Its Good "
      0.5 4.0/5 "Great!"
      New India car policy is comparatively economical when it compared with all the insurance companies, my policy got activated on spot during week end. I have Ford Figo car, they gave me third party cover and 100% of protection with no claim bonus.
      Was this review helpful? 0
      , bathinda
      Reviewed on Oct 11, 2018
    • Liberty Car Insurance
      "Good Service"
      0.5 4.0/5 "Great!"
      I don't have claim experience with Liberty General,however I am holding the insurance. The premium amount is nominal with Best IDV, they sent the policy copy to the courier on time. They have cash less garages for damage for my Nissan car with third party liability.
      Was this review helpful? 0
      , ranchi
      Reviewed on Oct 11, 2018
    • Iffco Tokio Car Insurance
      "Yet to Experience the policy"
      0.5 4.0/5 "Great!"
      I have already been looking into the claim ratio hence i have chosen the Iffco Tokio. Its been a while like March i have taken this policy with Iffco Tokio. I did not remember about the premium amount and coverage. This is a third party insurance. It has been applicable for the no claim bonus.
      Was this review helpful? 0
      , agra
      Reviewed on Oct 10, 2018
    • HDFC Ergo Car Insurance
      "Its Good"
      0.5 4.0/5 "Great!"
      Simply I went to the online portal , when I compared the premium HDFC Ergo is bit lower than two or three company with better cover. Hence I have taken HDFC car policy, my plan name is basic plan it has third party liability cover and no claim bonus.
      Was this review helpful? 0
      , delhi
      Reviewed on Oct 10, 2018
    • Reliance General Car Insurance
      "Its Good"
      0.5 3.5/5 "Pretty good"
      This is my first experience, with Reliance, it was advised by online channel. Because Reliance has lowest premium in the market but when its comes to policy coverage value it is also low because my car is around nine years old. My maruthi suzuki has third party coverage, but I am not happy with customer support they haven't reach me.
      Was this review helpful? 0
      , mumbai
      Reviewed on Oct 10, 2018
    • Bajaj Allianz Car Insurance
      "Premium should be competitive"
      0.5 3.5/5 "Pretty good"
      Bajaj Allianz is equally good but I felt the premium is high. When I comparing it too costly than the Royal Sundaram. Last time they gave me good insured declared value and also third party coverage for all damage, loss and other calamities. I am fine with that.
      Was this review helpful? 0
      , chennai
      Reviewed on Oct 09, 2018
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