Essential Guide to Third Party Car Insurance

Accidents can happen to anyone, regardless of their driving skills. You never know when a two-wheeler will pass you on the wrong side of the roadway. You also never know when a pothole will cause your car to jolt and damage its components while you are going at a steady speed. A car insurance policy is there to protect against all of these risks. This motor insurance policy is broadly classified into three types (viz., third-party liability insurance, comprehensive coverage, and standalone own damage cover), out of which today we will explore the most basic coverage, third-party liability insurance.

What is Third-Party Liability Cover?

Third-party insurance, or basic cover or liability coverage, is mandatory for vehicle owners. It comes into play if your insured car damages someone’s property due to a collision or injures someone outside the insured vehicle in an accident.

It is crucial to note that a third-party liability insurance plan does not cover any losses or damage to the covered vehicle. You cannot extend policy coverage by adding a rider to your basic liability coverage. 

How does Third-Party Liability Cover Work?

Suppose you were driving from home to work one day. A pedestrian appears out of nowhere at the intersection as you prepare to make a turn. Before you applied the brakes, your car collided with that person, causing him major injuries. You rush to the hospital to help him receive rapid treatment while simultaneously completing the necessary paperwork. The hospital hands you a bill for Rs 6,00,000. In this situation, after analysing the claim, the insurer will cover the medical expenditures. 

How to Claim for Third-Party Car Insurance?

If you have injured someone or damaged the person’s property, here is how to file a third-party car insurance claim.

• Call your insurer and tell them about the situation. Ensure that you notify them within the specified timeframe. 

• Next, contact the police station under whose jurisdiction the accident occurred. File an FIR there, and keep a copy.

• Go to your insurer's website to fill out the claim form. Upload all required paperwork.

• Following the claim submission, the insurer will appoint a surveyor to examine the degree of the third party's loss and, based on that, prepare and submit a report to the claims department.

• After the claims department evaluates the submitted report and finds it satisfactory, they will settle the claim amount. 

Features of Third-Party Liability Coverage

Listed below are the significant features of third-party liability coverage. 

• Lower premiums: Since this policy provides the bare minimum of coverage, the premiums are significantly lower than those for standalone own damage and comprehensive insurance.

• Instant cover: Like any other policy, you must simply visit your insurer’s website, enter car-related information, such as registration number, make and model, and finally make the payment. Following these procedures, you will immediately receive a soft copy of your insurance document at your registered email ID.

• Limited coverage: As previously stated, the policy does not cover damage or theft of insured vehicles.

Third-Party Liability Cover Premium

You may not be aware that the insurance regulator (IRDAI) determines the premium for liability coverage based on the car’s displacement size. The insurer can only set the rate for the own damage portion of the four-wheeler insurance. Here are the latest rates. 

Premium for Single-Year Policy

Premium for 3-Year Policy 

Premium for Single-Year Policy for Electric Cars

Premium for 3-Year Policy for Electric Cars

Exclusions of Third-Party Liability Cover

• The policy does not reimburse medical costs if an insured car driver sustains an injury. Such medical bills are covered under the personal accident component of your comprehensive cover. 
• If the insurer comes to know that at the scene of the incident, you were driving under the influence of alcohol/drugs, no claim will be accepted.
• The insurer might reject the claim if the insured car driver is a minor or a lunatic.

Conclusion 

Third-party liability coverage is required to drive legally in India. However, this policy does not cover the insured vehicle or its driver and passengers. Thus, experts recommend opting for comprehensive or enhanced third-party liability coverage with own damage insurance and a few riders.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the relevant industry. It is advised to verify the relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.