Third-party Car Insurance Explained

Third-party insurance is a legal requirement for every car owner in India. It covers injury or damage caused to another person or their property by your vehicle. Understanding third-party insurance helps you realise its importance in protecting you from legal and financial troubles.

You can easily buy third-party car insurance online to stay covered and compliant. It ensures safer driving and protects you from unexpected legal expenses on Indian roads.

Quick and Easy Purchase

Buying third-party car insurance online is quick and hassle-free, eliminating the need for physical visits. The entire process can be completed from the comfort of your home within minutes.

Instant Policy Issuance

Receive the third-party car insurance policy instantly via email upon successful payment. No waiting period ensures immediate legal compliance.

Convenient Renewals

Car insurance third party renewals are seamless, with timely reminders for policy expiration. A few simple clicks allow policyholders to extend coverage without disruptions.

Budget-Friendly Premiums

Third-party car insurance has lower premiums than comprehensive car insurance. It offers essential protection at a significantly lower cost.

Secure Payment Options

The online platform provides safe and encrypted payment gateways, ensuring transaction security. Multiple payment options like UPI, net banking, and credit/debit cards are available.

Smart Comparison Tools

Customers can compare third-party car insurance online with other policies before purchase. Helps in selecting the best plan with optimal premium costs and benefits.

24/7 Accessible Customer Support

Dedicated support via chat, email, or phone to assist with policy queries or claims. Quick resolution of concerns ensures a seamless user experience.

Paperless Documentation

Policyholders receive all insurance-related documents digitally, accessible anytime. Reduces the risk of losing important papers, ensuring easy retrieval.

Legal Compliance

Third-party vehicle insurance is mandatory under the Motor Vehicles Act, ensuring legal compliance. Protects policyholders from potential penalties or fines for non-compliance.

Saves Time and Effort

From purchase to renewal of car insurance online, everything is digital and fast. You save time, avoid paperwork, and stay covered without interruptions.

In India, third-party car insurance rates are fixed by IRDAI (Insurance Regulatory and Development Authority of India), not by individual insurers. The premium amount is based on the engine size for petrol or diesel vehicles, and battery capacity for electric cars. These rates are reviewed and updated from time to time.

Since the pricing is standardised across all insurers, you pay the same premium no matter which company you choose. This ensures fairness and transparency for every policyholder. Third-party plans also tend to be more affordable than comprehensive car insurance, which makes them a smart choice if you're only looking to meet legal requirements.

Third-party Car Insurance Premium Rates for Electric Cars (2024–25)

Third-party car insurance is not just an option in India; it is a legal requirement. Under the Motor Vehicles Act, 1988, every car owner must carry at least a third-party insurance policy to drive on public roads.

Why is this law in place? Because no matter how safely you drive, accidents can still happen. If your vehicle causes injury, death, or damage to someone else's property, the financial consequences can be significant.

While this policy does not cover your own car, it protects you from the legal and monetary burden. Without it, you could end up paying a huge amount out of pocket.

But third party motor insurance isn’t just about ticking a legal box. It’s about being a responsible driver. You’re not only protecting yourself but also others on the road. It helps make driving safer for everyone.

• Legal Requirement: In India, the Motor Vehicles Act of 1988 mandates that all vehicle owners have a third-party insurance policy. Driving without it may require you to pay fines and penalties.
• Coverage for Third-party Liabilities: This insurance covers liabilities arising from injuries, death, or property damage caused to a third party by your vehicle. It shields you from substantial out-of-pocket expenses.
• Affordable Premiums: Opting for cheap third-party insurance ensures compliance with legal requirements without straining your budget. It is a cost-effective way to stay protected.
• Nationwide Validity: Third-party car insurance remains valid across India, ensuring you are covered wherever you drive within the country.
• Support in Legal Cases: In case of accidents leading to legal disputes, this insurance helps manage claimant costs and legal defence expenses.
• Peace of Mind: Insurance for car third party liabilities allows you to drive confidently, as you are safeguarded against unforeseen incidents.

Inclusions

• Third-party Liability - Covers legal liabilities for bodily injury or death of a third party, including pedestrians and passengers.
• Property Damage - Covers damage to third party property such as vehicles, boundary walls, or structures.
• Personal Accident Cover (Owner-Driver) - Offers compensation for death or permanent disability of the owner-driver due to an accident.
• Legal Expenses- Includes claimant’s costs and expenses if the insured is held legally liable.
• Coverage for Permitted Drivers - Extends protection to drivers using the car with the policyholder’s consent.

Exclusions

• Own Vehicle Damage - Loss or damage to the insured car itself is not covered.
• Personal Injuries to Policyholder & Passengers - No coverage for medical costs of the owner or passengers.
• Non-Accident Damages - No protection against theft, fire, riots, vandalism, or natural calamities.
• Driving Under the Influence - Claims may be rejected if the driver is found intoxicated during the accident.
• Unauthorised Usage - Claims are not payable if the vehicle is used for purposes beyond the allowed usage in the policy.

• Step 1: Go to the TATA AIG website - Open the TATA AIG official website, and click on 'Brand New Car'.
• Step 2: Vehicle Details - Fill in the vehicle’s make, model variant, fuel type, and location of registration. Since it is a new vehicle, a delivery date may also be required.
• Step 3: Contact & Location Information - Fill in your mobile number, RTO code, PIN code and delivery date to allow TATA AIG to create a quote according to your location.
• Step 4: Select Coverage Type - Select third party Car Insurance, which means you would only need insurance for damage/injury you caused to someone else.
• Step 5: Personal and Vehicle Information - Fill in your name, date of birth, address, and email ID. Will be directed to complete CKYC. Will also need to complete your car's engine number, chassis number & nominee.
• Step 6: Payment - Pay the premium amount securely online using your favourite payment option.
• Step 7: Instant Policy - Once you have made the payment successfully, an email of the third-party car insurance policy will be sent to your registered email ID, and it will also be available to download immediately on the screen.

• Step 1: Go to TATA AIG's Website - Hit the 'Renew' option on the homepage.
• Step 2: Enter your own Car Registration Number - Enter your existing car registration number to pull up your policy details.
• Step 3: Other Insurer's policy – Hit 'Get Quote' - If your existing policy is with another insurer, hit 'Get Quote' and then enter the basic vehicle details as well as contact details.
• Step 4: Select Coverage Option, Choose third party - Select third party Car insurance as the coverage option. This insurance option satisfies the legal requirement and offers third party coverage.
• Step 5: Confirm All Details - Confirm the policy details. Since we are dealing with a third party plan, there are no add-ons to select from, so this should be relatively quick.
• Step 6: Make Payment - Pay the premium securely via one of the online options.
• Step 7: Get Your New Policy - Your new third party policy will be issued immediately and sent to your registered email address.

Not sure what happens when you have third-party car insurance and meet with an accident? Here’s a quick look at how it actually works:

• If you cause an accident, this policy covers the damage to the other person’s vehicle or property.
• It also takes care of medical expenses if someone is injured due to your car.
• You will need to file a claim with TATA AIG, and we will assess the damage and associated costs.
• If the claim is approved, we will pay the amount up to the policy’s coverage limit.
• If the cost exceeds that limit, you will need to cover the rest yourself.
• This policy helps you stay legally compliant under Indian law.

While third-party insurance keeps you covered on paper, it does not protect your own car. For more complete protection, consider switching to a comprehensive plan.

Compare Before You Buy

Don't accept the first quote you happen to stumble upon. Compare prices on various websites or comparison platforms. Even though premiums are regulated, some insurers offer better digital support, renewal options, or customer experience. Always compare before you finalise your purchase.

Buy Online, Save More with TATA AIG

When you purchase directly from TATA AIG's website, you save on agent commissions and additional charges. Additionally, you can avail of up to 85% off on new car insurance and up to 75% off on rollover policies for older vehicles. It's quick, paperless, and your policy arrives instantly.

Stay With Just What You Need

Third-party insurance pays for damage to other people's cars, not your vehicle. Since it does not include your car’s damage, avoid paying for unnecessary features. Stick to the legal minimum if you are only looking for compliance at a lower premium.

Go With a Reliable Name

Always choose a trusted insurer with strong claim support and customer service. TATA AIG offers a smooth quote process, quick policy issuance, and round-the-clock support. When you go with a reliable name, you are covered with more confidence.

Renew On Time

Never delay your policy renewal. Renewing on time helps avoid last-minute inspections, higher premiums, or a temporary lack of coverage. Timely renewal ensures uninterrupted legal protection and makes you a responsible policyholder on Indian roads.

Filing a third party claim with TATA AIG is a quick and easy process. Follow these simple steps to get the support you need.

Filing a Claim as a Policyholder (Own Damage Claim)

If your car is damaged due to an accident, you can raise your damage claim under your TATA AIG policy. Follow the steps below to complete the process:

Step 1: Ensure Safety and Secure the Scene

After the accident, ensure everyone is safe. Move your vehicle to a safe spot if possible, turn on the hazard lights, and help any injured individuals. Call the police or medical help if needed.

Step 2: Inform TATA AIG

Contact TATA AIG immediately to report the accident. You can contact via the claims page, mobile app (Google Play or App Store), or customer helpline at 022-6489-8282 (charges apply). Timely reporting is essential for smooth claim processing.

Step 3: File a Police Report (If Required)

For major accidents or legal disputes, file an FIR at the nearest police station. This is usually required in cases involving bodily injury, significant property damage, theft, or third party involvement.

Step 4: Claim Survey and Inspection

TATA AIG will assign a surveyor to assess the damage to your vehicle. The surveyor will inspect the car and prepare a report to support the claim.

Step 5: Submit Required Documents

Submit the completed claim form, a copy of the FIR (if applicable), your insurance policy, vehicle registration certificate (RC), and your driving license.

Step 6: Claim Settlement

Once the documents are verified and the survey is complete, TATA AIG will approve and process your claim. The approved amount will be paid to you based on the policy terms, after applicable depreciation or deductible amounts are adjusted.

Filing a Claim as a Victim (Third-party Liability Claim)

If you are a victim of an accident and the other vehicle is insured with TATA AIG, you can file a third party liability claim. Follow these steps:

Step 1: Gather Information

Collect all important details about the accident. Note the date, time, and location, and gather the contact details of the driver, witnesses, and vehicle owner. Take photos of the accident scene, vehicle damage, and any visible injuries.

Step 2: Report the Accident

File a police complaint and obtain an FIR from the nearest police station. An FIR is required to initiate a third-party insurance claim.

Step 3: Identify the Insurer

Get the insurance policy details or registration number of the at-fault vehicle. Contact TATA AIG or visit the official website to confirm the policy details. You can use the vehicle registration number to check the insurance details through the VAHAN portal or by contacting TATA AIG directly.

Step 4: Inform TATA AIG

Notify TATA AIG and submit the accident details along with a copy of the FIR. A representative will guide you on the claim procedure or may refer you to the Motor Accident Claims Tribunal (MACT), depending on the situation.

Step 5: Claim Survey and Inspection

Depending on the case, TATA AIG may appoint a surveyor to assess the damage to your vehicle or property. Cooperate with the surveyor and provide any supporting documents or evidence.

Step 6: Submit Required Documents

Provide all necessary documents, including the FIR, a copy of your vehicle's registration certificate (if applicable), driving licence, medical bills (in case of injury), and any additional documents requested by the insurer.

Step 7: Claim Settlement

Compensation for injury or property damage is usually decided by the Motor Accident Claims Tribunal (MACT). TATA AIG, as the insurer of the at-fault vehicle, will pay the approved amount on behalf of its policyholder, in accordance with the law and policy terms.

Also Read: Standalone Own Damage Car Insurance

Mandatory Cover

Third-party car insurance is a legal requirement under the Motor Vehicles Act, 1988. Without it, you cannot legally drive on Indian roads. It helps cover financial or legal liabilities if your car injures someone or damages their property. Failing to have this cover may result in heavy penalties, fines, or legal issues. It ensures every vehicle owner takes financial responsibility while driving.

Coverage Limits

Third-party liability cover protects against injury, death, or property damage caused to another person by your car. However, it does not cover repair costs for your own vehicle or medical expenses for your injuries. This type of policy covers injury or death to another person and property damage up to ₹7.5 lakh. Understanding these limits is crucial before buying to avoid future surprises.

Fixed Premiums

Premiums for third-party car insurance are standardised by the Insurance Regulatory and Development Authority of India (IRDAI). Since rates are the same across all companies, your choice should depend on customer service quality. Reputed insurers like TATA AIG make the process seamless with secure digital platforms and quick assistance.

No Add-Ons

Unlike comprehensive policies, third party liability cover does not allow add-ons like Zero Depreciation, Engine Protection, or Roadside Assistance. If you want broader coverage, a comprehensive policy is better. Knowing this difference helps you choose the right policy depending on whether you seek basic compliance or enhanced protection.

Claim Settlement

Before selecting an insurer, check its claim settlement ratio. A higher ratio reflects faster, more reliable claim processing and customer-friendly service. TATA AIG has strong settlement records and provides greater assurance. This helps you avoid delays or disputes during the claims process after an unfortunate accident.

Digital Support

With the car insurance online process, instant documentation, and 24/7 customer support, the process of getting a car insurance gets easier. With digital records, you never lose important papers. Moreover, multiple touch points ensure help is always available during emergencies. Choosing such services ensures a smooth, convenient experience throughout your policy tenure.

Easy Renewals

Renewing third-party car insurance should be quick and convenient. Many insurers send reminders before expiry and allow easy online renewals in just a few clicks. This ensures your coverage remains active without any gap, and keeps you legally compliant and financially protected at all times.

Trusted Insurer

Since third-party insurance rates are uniform, the credibility of the insurer becomes a deciding factor. Choosing a reputed company like TATA AIG with strong market presence, positive customer reviews, and proven reliability ensures dependable service. It gives you long-term confidence that your claims and support will always be handled efficiently.

Third-party car insurance is not just a legal necessity - it is a smart step toward responsible car ownership. While it may not offer wide coverage like comprehensive car insurance, it safeguards you from unexpected legal and financial liabilities involving others.

Whether you are looking for your first car insurance policy or renewing an existing one, choosing a reliable third party plan ensures uninterrupted legal protection. If you want added benefits, you can always explore comprehensive car insurance.

With fixed rates regulated by IRDAI and quick digital processes, it is now easier than ever to buy car insurance online. Trusted insurers like TATA AIG offer instant policies, secure payment options, and 24/7 assistance to simplify your experience.

So, stay compliant, stay covered, and confidently buy car insurance online from TATA AIG with complete convenience.

Rajesh Kumar, Delhi.

I've been using TATA AIG's third-party car insurance for the past two years, and I must say, it has been a hassle-free experience. Recently, I had an unfortunate accident where my car collided with another vehicle. Thanks to TATA AIG, the claim process was smooth and efficient. They handled everything promptly, from filing the claim to settling it without hassle. I highly recommend TATA AIG for their excellent customer service and reliable third-party car insurance coverage.

Sneha Patel, Mumbai.

I was sceptical about buying third-party car insurance initially, but after researching various insurers, I chose TATA AIG, which was the right decision. Last month, my car accidentally damaged someone's property, and I was worried about the costs involved. TATA AIG came to the rescue! Their team guided me through the claim process and ensured a quick settlement. I appreciate their professionalism and commitment to customer satisfaction. I feel more secure on the road knowing
I have TATA AIG's third-party car insurance.

Ravi Verma, Bangalore.

TATA AIG's third-party car insurance has been a reliable and cost-effective choice for me. I recently had a minor accident where I damaged another car's bumper. Despite being a small claim, TATA
AIG treated it with utmost importance and settled it efficiently. Their online platform made the claim process incredibly convenient, and I received the settlement amount within days. TATA AIG's third-party car insurance is the best value for money, and I will definitely continue using their services.