Is third-party car insurance mandatory?

Yes, it is the minimum insurance coverage you must have to drive your car legally in India. Not having at least a third-party insurance can lead to hefty fines or even imprisonment.

What happens if I am caught driving without a third-party insurance policy?

Traffic police in the country have the right to stop you and ask you to show the necessary documentation. At this time, if you cannot show a valid insurance policy, you will be subjected to a fine of at least ₹2,000. Depending on your driving record, you may also have to face imprisonment.

If you claim for third-party car insurance, will you lose your no claim bonus?

A no claim bonus benefit applies only to making claims for damages to your own car. Since a third-party policy does not cover own damages, you cannot have a no claim bonus. Moreover, no claim bonus is an add-on benefit that can only be availed with a comprehensive policy.

Is third-party insurance enough for my car?

The adequate insurance coverage depends on the car. Hence, every car has a different set of coverage needs. If you are only trying to avoid paying traffic fine by keeping your paperwork proper and don’t mind paying for the repair costs when your car gets damaged, a third-party insurance is enough for you. Otherwise, you should go for a comprehensive policy.

What happens if I meet with an accident in a different city/ state?

A third-party policy is active wherever you can drive a car within India. Hence, if you meet with an accident in another part of the country, you can still make a claim.

What is the maximum compensation offered as part of this policy?

There’s no limit on the coverage for third party death or injury. Your third party policy will cover the amount decided by the court. The maximum compensation offered by a third-party policy for property damage is ₹1 lakh.

What documents should I submit when raising a claim for third-party car insurance online?

Unless the situation requires it, you do not need to present any documents while making a claim. However, at the time of assessment by the Motor Vehicles Tribunal, you have to provide a copy of the FIR made by the third-party regarding the incident.

Is there a better policy than a third-party liability policy?

If you want all-rounder coverage for your car, then a third party liability policy is not enough, as it doesn’t cover any damages to your own car. An own damage or a comprehensive policy comes with a host of other features like no claim bonus, range of add-ons to choose from, customisable coverage and more.

Is it possible to renew a third-party car insurance policy online if I had purchased it offline?

Yes, you can renew your third-party car insurance policy online at the ICICI Lombard General Insurance website or the ILTakeCare mobile app.

What happens to my third-party car insurance policy if I sell my car?

A car insurance policy is bought for a car instead of an individual. Hence, if you sell your car to someone else, the insurance policy must be transferred to the new owner along with it. However, you have to make sure you carry out the proper paperwork to transfer the ownership of the car so that in case of an accident later, you are not held liable.

Does the model of my car matter while buying a third-party policy?

A third-party policy has its coverage based on the cubic capacity of the engine of the car. Since different cars can have different cubic capacities, the premium for the policy can differ based on it. However, the coverage remains uniform across all car models.

Who handles the cases filed for third-party claims?

The case filed for third-party claims is handled by the Motor Vehicles Tribunal. It is a court of law that deals with issues regarding the right amount of compensation, investigation of the incident, etc.

Is there a time limit before which one has to file a claim?

It is better to claim as soon as possible after the accident. File a claim within 24 hours of the incident by calling us on 1800 2666.

How does third-party car Insurance work for private vehicles?

A private vehicle is one that is owned and used by an individual. By law, it is the sole property of that individual. A third party insurance protects car owners from any liabilities arising out of an accident involving their cars. It covers third party property damages up to 1 Lakh. It also gives unlimited coverage for third party injuries/death; the actual amount is decided by the court.

How does third-party car insurance work for commercial vehicles?

A commercial vehicle includes cars used for employee transportation, trucks used for transporting goods, etc. These vehicles belong to a business entity instead of one person. However, third-party policies cover cars instead of car owners. Hence, buying third-party plans for commercial vehicles is almost the same as buying one for a private vehicle. The terms and conditions of the policy are the same. However, there can be differences in coverage, premium, and purchase process.

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RTI in car insurance

Get full invoice value
Prevent big financial losses
Complete peace of mind

What is return to invoice cover?

Return to Invoice (RTI) cover is an optional add-on in car insurance that gives you the full invoice value of your car in case of total loss or theft. This means you get back the original price you paid when you purchased the vehicle, including registration charges. Typically, a car’s value goes down over time. but RTI helps cover that gap. It is useful for new or recently purchased cars.

How does RTI cover in car insurance work?

Return to Invoice cover in car insurance helps you get the full value of your vehicle if it is stolen or damaged beyond repair. Normally, insurance companies pay the current market value of the car. However, market value goes down with time. With return to invoice cover, you get back the amount you paid when you bought the car. It helps you avoid significant financial losses. You can opt for this cover as an add-on when you purchase or renew your car insurance by paying an additional premium.

Benefits of RTI add-on cover

Some potential benefits of RTI cover in car insurance are:

Full invoice value

With this add-on, you get the full amount you paid for the car (as per the invoice) if it's stolen or totally damaged.

Financial cushion

RTI in car insurance financially safeguards you. It helps prevent big financial losses, especially if your car gets stolen or damaged.

Peace of mind

This cover offers you peace of mind, as you know you won't have to bear out-of-pocket expenses in case your car is damaged or lost.

When is the return to invoice cover applicable?

The RTI cover in car insurance is applicable when your car is declared a total loss or is stolen and cannot be recovered. A total loss usually means the car is damaged beyond repair due to natural or man-made calamities such as fire, explosion, earthquake, typhoon, etc. Please go through the policy wordings to learn about various aspects of the cover in detail.

How to calculate RTI cover?

To calculate RTI cover:

1

Know invoice value

Find out your car’s original value when you purchased it, including its registration and ex-showroom prices.

2

Know insured declared value

Know your car’s insured declared value (IDV). IDV is the car’s current market value, not its original price. Depreciation reduces IDV every year.

3

Calculate the difference

Subtract the invoice from the original invoice value. This is the amount the RTI cover will pay over your regular plan. Check with the insurer regarding the sum insured offered under this add-on.

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Frequently asked questions

Who should purchase a return to invoice cover?

If you are a new car owner, you can opt for buying a return to invoice cover.

How much does RTI in car insurance cost?

The amount depends on your car’s model and the insurer’s pricing. Check with your insurer regarding its pricing.

Can I buy return to invoice for obsolete car models?

Generally, you can’t buy this cover for obsolete car models. However, if permissible by your insurer, you can do so. In such a scenario, the last selling price of the vehicle will be considered to pay the sum insured.

What is the difference between RTI and IDV?

RTI is an add-on cover while IDV is the current market price of the vehicle.

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