Third Party Insurance
Having a vehicle is still considered a matter of privilege in India. Whether you own a four-wheeler or a two-wheeler, the ownership of a vehicle is accompanied by certain responsibilities, though, perhaps none more important than a vehicle insurance policy. It is legally mandatory for all vehicle owners in India to have at least third party insurance for their vehicle.
Failure to have an active third party car insurance policy or third party bike insurance policy can leave you susceptible to fines as well as the financial and legal liabilities arising out of any damages caused to third-party properties as well as injuries to third-party persons as a result of an accident involving your vehicle.
Therefore, it is advisable to ensure that your four wheeler insurance policy or two wheeler insurance policy is active and carry out its renewal on a timely basis. You can buy car insurance online and save a significant amount of time and effort in the process. At Tata AIG, we offer a diverse range of car insurance plans that you can compare and buy online. You can also buy our bike insurance policies online.
You can choose from our third party car insurance policy, own damage car insurance policy, and comprehensive car insurance policy.
What Is Third Party Insurance?
As its name suggests, a third party liability insurance policy is an insurance plan that provides you with coverage against third-party liabilities. The Motor Laws applicable in the country have made it mandatory for all vehicles, two-wheelers and four-wheelers alike, to have a third party vehicle insurance policy.
One of the main reasons for this legal mandate is the protection of the relevant third party against the damages sustained in an accident caused by the insured vehicle. Therefore, the third party insurance meaning is clear: it is a plan that has been designed to offer you coverage against any third-party liabilities arising out of an accident involving your car or bike, including bodily damage to third-party persons.
A third party insurance policy typically covers the following damages:
1.Damages to third-party property, including their vehicle 2.Injuries to third-party persons 3.The death of a third-party person
You can purchase third party insurance online by visiting our official website. At Tata AIG, we offer third party bike insurance as well as third party car insurance plans that offer substantial coverage against third-party liabilities. By buying these policies, you can be financially secured against any third-party liabilities pertaining to your vehicle.
However, if you wish to have comprehensive coverage for your vehicle, then you must opt for our comprehensive car insurance plan or comprehensive bike insurance plan.
How Much Does Third Party Insurance Cost?
The third party insurance price in India is determined by the insurance premium rates Declared every year by the Insurance Regulatory and Development Authority of India (IRDAI).
1.Third party car insurance price: The price of your third party car insurance policy is decided on the basis of several factors, including your car's engine cubic capacity and the prevailing third-party car insurance rates for a particular year. The following table sheds light on the present third-party car insurance rates as declared by the IRDAI.
|The Cubic Capacity of the Car||Third Party Car Insurance Price|
|Not more than 1000cc||₹2,072*|
|Over 1000cc but not more than 1500cc||₹3,221*|
|More than 1500cc||₹7,890*|
2.Third party bike insurance price: Akin to a third-party car insurance policy, the price of a third party bike insurance policy is driven by the cubic capacity of your bike's engine and the annual rates of third-party bike insurance announced by the Insurance Regulatory and Development Authority of India. Here are the present rates for third party bike insurance plans in India.
|The Cubic Capacity of the Bike||Third Party Bike Insurance Price|
|Not more than 75cc||₹482*|
|More than 75cc but not more than 150cc||₹752*|
|More than 150cc but not more than 350cc||₹1,193*|
|More than 350cc||₹2,323*|
How Does Third Party Insurance Work?
Before purchasing third party car insurance online, it is important to understand who the third party in such a plan is. The same principle applies to the purchase of third party bike insurance online. This understanding can enable you to understand the workings of a third party insurance plan.
There are three parties to any third party insurance contract.
1.The first party: The owner of the bike or car is the first party in an insurance contract.
2.The second party: The insurer is the second party in an insurance contract.
3.The third party: Any other person other than the first and second party mentioned above is considered a third party in an insurance contract.
A third party insurance policy provides a financial safety net to the first party against any damages caused to a third-party as a result of an accident involving their vehicle. Therefore, any medical costs for the treatment of the third-party in such a scenario are covered by this policy.
With regard to the second party in a third party insurance contract, that is, the insurance provider, their responsibility is to provide the coverage to the first party as promised under the plan.
The third-party or the party that suffers any damage to their property, vehicle, or person is entitled to file a legal complaint against the first party to claim the cost incurred due to said damages. This includes the cost of hospitalisation resulting from bodily injuries as well as the death of the third party due to the accident-induced injuries.
What Is Covered In A Third Party Insurance Plan?
If you wish to purchase a third party insurance policy, then you must have a thorough understanding of what is covered under such a policy. A third party vehicle insurance policy covers the following:
1.Damages due to the injuries to or death of a third-party person: If an accident caused by your bike or car leads to injuries for any third-party persons, then the resulting liabilities are covered by a third party insurance policy. This includes the expenses borne out of the hospitalisation of the third-party person/s. Furthermore, if a third-party person succumbs to said injuries, then the resultant legal and financial liabilities are also covered under this plan.
2.Damages caused to a third-party property: Any damages caused to a third-party property in an accident caused by your vehicle are covered by a third party insurance policy. This includes the damages caused to the relevant vehicle of the third party.
3.A Personal Accident Cover for the owner or driver of the car: Not only do you get third party coverage under a third party insurance policy, but you also get a Personal Accident Cover amounting to ₹15 lakhs. This covers the cost of any medical expenses and/or hospitalisation expenses incurred due to an accident-induced injury. In the event of your demise because of said injuries, your nominees are entitled to receive this amount.
It is important to note that the motor laws in India require you to not only have a valid third party insurance policy but also to keep the policy with your vehicle at all times, even when the vehicle is not being used. This policy can be stored either in physical form with your vehicle or a digital form on your phone, tablet, or laptop.
What Is Not Covered In A Third Party Insurance Plan?
In addition to perusing the inclusions in your third party insurance policy, you must also pay attention to the exclusions in such a policy. Whilst a third party insurance policy protects you against the financial ramifications of any third-party damages or injuries, it does not protect you against several other damages, which have been discussed below.
1.Own damages to your vehicle: The damages sustained by your own vehicle are not covered by a third party vehicle insurance policy.
2.Driving without a valid Driver's License: Any accidents caused whilst you are driving your vehicle without a valid Driver's License are not included in the coverage of this plan.
3.Driving under the influence of alcohol or drugs: If you indulge in drunk driving or driving under the influence of any narcotics, then any resultant accident involving your vehicle is outside the ambit of a third party insurance policy.
4.Driving outside the geographical limits mentioned in the policy: You can or cannot file a third party insurance claim for any accidents involving your vehicle that occur outside the geographical limits mentioned in your third party insurance policy.
5.Contractual Liability: Any accidents and subsequent liabilities arising pertaining to a vehicle that has been contracted out or pledged are not covered under this policy.
6.Unauthorised usage of the vehicle: The usage of a private car for commercial purposes or for speed racing and any accidental damages caused as a result are not covered by this plan.
7.Vehicles driven by a non-designated driver: Any accidents caused by a vehicle that is not being driven by its designated driver or owner are excluded from the coverage of this policy.
8.Substantial or Total Loss to your vehicle: A third party insurance policy does not cover the total damage or substantial damage caused to a third-party vehicle due to an accident involving the insured vehicle. Therefore, the theft or total loss of a third-party vehicle is excluded from this plan.
9.War: Any third-party damages arising out of a war or war-like situation are not covered by a third-party insurance policy.
10.Nuclear Disaster: If a third-party vehicle is damaged or a third-party person is injured due to a nuclear disaster, then the resultant expenses are not covered under this plan.
Key Features Of A Third Party Insurance Plan
A third party insurance policy has certain key features that have been discussed below.
1.Basic Insurance Coverage: A third party insurance policy offers you basic vehicle insurance coverage in the form of cover for third-party liabilities. It does not include coverage for the damages caused to your own vehicle due to accidents, natural calamities, man-made dis, theft, fire, transit, etc.
2.Feasible premium: The premium of a third party vehicle insurance policy is determined on the basis of the cubic capacity of your vehicle as well as the insurance rates announced every year by the IRDAI. This premium is usually affordable so as to enable every vehicle owner to buy a legally mandated vehicle insurance plan.
3.No cover for own damages: A third party insurance policy does not comprise any coverage for own damage to your vehicle. Therefore, in the event of any such damages, your pockets may end up being substantially lighter. Therefore, it is advisable to opt for a comprehensive vehicle insurance policy.
4.Personal Accident Cover: A third party insurance policy offers a Personal Accident Cover for the owner-driver of yeh insured vehicle. This cover is to the tune of ₹15 lakhs.
5.Cashless Insurance: With the availability of cashless claims for the damages caused to any third-party vehicles by the insured vehicle, your vehicle insurance claim experience can become hassle-free.
Pros Of A Third Party Insurance Plan
Buying a third party insurance policy offers you several benefits. Here are some of the pros or benefits of third party insurance.
1.Fulfils a legal mandate: Since having a third party insurance policy is legally mandatory to drive in India, such a policy enables you to drive legally on the country's roads, thereby sparing you the need to pay any fines or penalties to the traffic authorities.
2.Provides coverage against third-party liabilities: With a third-party vehicle insurance policy, you get coverage against third-party liabilities, including injuries sustained by any third-party persons and the damages caused to any third-party property. This plan also covers the relevant third-party legal liabilities.
3.Offers you a Personal Accident Cover: If you happen to get injured in an accident involving your vehicle, then the Personal Accident Cover of a third party insurance policy can be of great assistance to you. With a sum insured of ₹15 lakhs, you get coverage for hospitalisation expenses as well as a death benefit for your nominee.
4.Helps you save your savings: By protecting you against the financial and legal implications of third-party damages, a third party insurance policy helps you keep your savings safe.
5.Time and cost-effective: You can purchase third party car insurance online, a facility that entails significant savings in terms of cost, time, and money. You can also purchase and renew third party bike insurance online.
Cons Of A Third Party Insurance Plan
Although a third party insurance policy provides you with a substantial degree of coverage against third-party liabilities, it does not provide you comprehensive coverage. If you wish to have comprehensive coverage for your vehicle, then you must buy a comprehensive insurance policy instead.
Here are some of the major cons or limitations of a third party vehicle insurance policy.
1.No coverage for damages to your own vehicle: As is clear from its name, a third party vehicle insurance policy only offers coverage for third-party damages. Any damages sustained by your vehicle in an accident are not part of the coverage of this plan, which means all the necessary repair expenses shall have to be borne by you.
2.No coverage for damages caused by natural disasters: If your vehicle is damaged due to any natural disaster, for instance, earthquakes, cyclones, floods, etc., then you cannot file a third party insurance claim. This is because the aforementioned damages are not covered by this plan.
3.No coverage for damages due to man-made calamities: Any damages sustained by your vehicle due to man-made calamities such as strikes, riots, etc., are not covered by a third party insurance policy.
What Is The Difference Between Comprehensive and Third Party Insurance?
There are several key differences between a comprehensive insurance policy and a third party insurance policy. These differences have been summarised in the following table.
Comprehensive vs Third Party Insurance
|Parameters||Third Party Insurance Policy||Comprehensive Insurance Policy|
|Coverage||A third party insurance policy offers you financial protection against third-party liabilities. This includes injuries to third-party persons and damages to third-party property.||A comprehensive insurance policy provides you coverage against third-party liabilities and own damage to your vehicle.|
|Cover for own damage of your vehicle||A cover for own damages to your vehicle is not a part of a third party insurance policy.||A cover for the damages sustained by your vehicle due to fire, accidents, theft, natural and man-made calamities, etc., is part of the coverage of this policy.|
|Premium||The premium of a third party insurance policy is lower than that of a comprehensive insurance policy.||The premium for a comprehensive insurance policy is higher than that of a third party insurance policy owing to its extensive coverage.|
|Legal aspect||It is legally mandatory for all vehicle owners in India to have at least third party insurance.||It is not legally mandatory for vehicle owners in the country to have comprehensive insurance. However, it is prudent to opt for it.|
Why Do You Need Third Party Insurance?
There is no way to predict any of the uncertainties that are an inevitable part of life. However, it is possible to have some contingency measures in place to be prepared for such situations. A third party insurance policy is one such measure. If you are wondering why you need a third party insurance policy, then the following reasons may help address this question.
1.It helps you comply with the law: Buying a third party insurance policy ensures that you comply with the motor laws applicable in India. If you do not have a valid third party insurance policy, you will have to pay fines.
2.It provides you with financial assistance: By covering the cost of third-party liabilities and offering you a Personal Accident Cover, a third party insurance policy provides you with substantial financial assistance.
3.It offers you legal protection: Not only does a third party insurance policy cover the financial cost of third-party liabilities, but it also offers you coverage against the legal implications of third-party damage claims.
4.It is cost-effective: A third party insurance policy is cost-effective and pocket-friendly. And the cost-effectiveness can be further enhanced if you purchase third party insurance online. The purchase of third party bike insurance online and third party car insurance online can help you benefit from substantial discounts on the policy premium.
Why Should You Invest In Tata AIG's Third Party Insurance?
If you are looking for an excellent third party insurance policy, then Tata AIG is a brilliant option for you. The Tata AIG Third Party Car Insurance Policy and the Tata AIG Third Party Bike Insurance Policy are both feature-laden plans that are feasible. Here are some of the many reasons why you must opt for a Tata AIG third party insurance policy.
1.A TATA promise: By purchasing a Tata AIG third party insurance policy, you shall have secured the commitment of one of India's most trusted brands. With decades of proven excellence in customer service and quality service delivery, Tata AIG is an association you shall be keen to continue for the long term.
2.Coverage in compliance with the law: Our third party insurance policies have been designed to offer you sufficient coverage in compliance with India's motor laws. In addition to a cover for the financial and legal liabilities associated with third-party damages, these policies also comprise a Personal Accident Cover of ₹15 lakhs.
3.Affordable Premiums: The price of a third party insurance policy from Tata AIG is extremely pocket-friendly.
4.Hassle-free policy purchase process: The process to purchase or renew your third party insurance policy on our website is a simple and swift one. This way, you can save on the time it requires for you to buy or renew a third party vehicle insurance policy.
5.High Claim Settlement Ratio: With a claim settlement ratio of 98 per cent for motor insurance for the financial year 2020-2021, Tata AIG has reiterated its commitment to a swift and streamlined claims process.
How To Claim Third Party Insurance?
One of the most important aspects of a third party insurance policy is the knowledge of the process of claims. There are two scenarios wherein you may have to file a third party insurance claim.
Scenario I - When your vehicle has caused damage to a third party
Here are the steps you must follow to file a third party insurance claim if your vehicle has caused any damage to a third party property or person.
1.Collect the evidence of the damage caused to the third party property or person. This proof can be in the form of photographs or videos. 2.Keep a note of the affected third party's name, address, and contact number. 3.Ensure that you have noted down the contact details of eyewitnesses to the accident if any. 4.Intimate your vehicle insurer about the accident. 5.File a First Information Report at the nearest police station. 6.File a plea at the relevant Motor Accident Claims Tribunal Court. 7.Gather all the necessary documentary evidence and follow the due process of the law. 8.Keep your insurer informed of the verdict of the aforementioned tribunal so that they can further process your vehicle insurance claim.
Scenario 2 - When your vehicle has been damaged by another vehicle
If your vehicle gets damaged by another's in an accident, then you can file a third party damages claim in the following manner.
1.Gather the relevant evidence of the damage sustained by your vehicle or body in the accident, using photographs and/or videos. 2.Make a note of the contact details of the party that has caused the damages to your vehicle. 3.Note down the contact details of any witnesses at the scene of the accident. 4.File a First Information Report at the nearest police station. 5.Follow the due course of law at the Motor Accidents Claims Tribunal Court. 6.Submit all the documents required by the aforementioned court and be present at all the sessions of the case. 7.Substantiate your case with the testimonies of eyewitnesses, if applicable. 8.Await the decision of the Tribunals Court for the award of the relevant damage claim to you.
Points To Consider While Raising A Third Party Insurance Claim
Whilst raising a third party insurance claim, you must be mindful of a few things, such as:
1.You must file an FIR for an accidental claim: If your vehicle is the cause of an accident that has led to any third-party damages and/or injuries, then you must file a First Information Report at the nearest police station and report the incident.
2.Inform your insurance provider: Along with filing a First Information Report about an accident involving your vehicle, you must ensure that your insurance provider is informed at the earliest about the incident. This can lead to the timely initiation of the claims process.
3.The participation of the affected third party is required for the damage claim: It is important to remember that the affected third party is required to submit the necessary evidence pertaining to the damages caused to their property or person in an accident involving your vehicle. Only then can the process of a damages claim move forward.
4.Consider out-of-court settlement of minor damages: In the event of minor third-party claims, it is prudent to settle the damages with the affected third party out of court and on your own. This can help you save significant time by sparing you the need to go through a lengthy legal process.
5.There is no limit on liability for injuries to third party persons: If your vehicle has caused third-party injuries in an accident, then there is no ceiling on the amount that the affected third party can claim as damages. However, in the case of damages to third-party property, this ceiling is fixed at ₹7.5 lakhs.
What is third party car insurance?
Third party car insurance is a basic but mandatory car insurance cover that protects you from third-party losses and damages such as injuries to a third-party person or even their death, as well as damages to a third-party vehicle or property caused by your insured car.
What all is covered under a third party car insurance policy?
In case of an accident, third party insurance covers third-party losses caused by your insured car. This could be injuries to or even the demise of a third-party person or partial or total damage to a third-party vehicle or property.
Is a third party insurance plan mandatory for all car owners?
Yes, a third party insurance plan is mandatory as per the Motor Vehicles Act, and all car owners must have third party insurance with them to be able to drive legally in India.
What is the process for getting third party insurance for my 10-year-old car?
To buy a Tata AIG 3rd party insurance plan for your car, you can follow these quick steps:
- Visit our Tata AIG car insurance page, enter your car’s registration number and click “Get Price”.
- Then choose the policy type and proceed to know your car insurance premium quote.
- You can now purchase your third-party car insurance cover from Tata AIG.
Can I buy a zero depreciation add-on cover along with my third party car insurance plan?
No, a third party car insurance plan, though mandatory, offers limited coverage against third party losses only. Hence, you cannot include any add-ons, even zero depreciation add-ons, to your third party car insurance plan.
Is 3rd party insurance mandatory for cars?
Yes, a 3rd party car insurance is mandatory for all cars in India as per the Motor Vehicles Act. With basic third party insurance, you can be protected from paying heavy traffic fines.
Which is a better choice; third party car insurance or comprehensive car insurance?
The choice between a third party car insurance policy and comprehensive car insurance depends on your insurance needs and budget. If you currently need only a compulsory but basic insurance cover for your car, then a third-party policy is a good choice. However, if you need more extensive protection for your car along with the benefit of add-ons, then a comprehensive policy is better.
What happens if I am caught driving without a valid third-party liability insurance policy?
If you do not have a valid third-party liability insurance policy, then you will have to pay a traffic fine and other legal fines, which can get very expensive. It is also possible that your driver’s license could be temporarily suspended until you have paid all the required fines.
If you claim third party car insurance, will you lose your NCB?
No, you cannot lose your No Claim Bonus discount by filing a third party car insurance claim because this discount on premiums is only offered on Own Damage or comprehensive car insurance policies.
Is Third Party car insurance mandatory?
Yes, third party car insurance is mandatory by law as per the Motor Vehicles Act in India. Not having this basic car insurance policy with you at all times in your car can lead to you paying traffic fines to the tune of:
- ₹2000 and/or 3 months imprisonment
- ₹4000 and/or 3 months imprisonment
Is Third Party Insurance enough for my car?
A third party insurance policy can be enough for your car under certain circumstances. For one, if you intend to buy a comprehensive insurance cover in the next couple of weeks or months, you can buy third party insurance for the time being to avoid any legal hassles of not having a valid insurance cover. Also, if your car is very old and you plan to sell it off soon, you can manage with a third-party car insurance cover until then. Otherwise, a comprehensive insurance policy is a better choice.
What documents should I submit when raising a claim for third-party car insurance online?
If the third party affected by your insured vehicle wants to file a claim, they will have to submit an FIR charge sheet to request compensation for their losses. While filing a third-party car insurance claim online, apart from the FIR, other documents needed are the car insurance policy details, the registered contact details, the signed claim form with all the details, proof of the event, registration details of the insured vehicle and a copy of the driving license. In case there are injuries caused to a third-party person, then a copy of the medical bills will also be needed.