Bharti AXA General Insurance is now part of ICICI Lombard General Insurance.

Bharti AXA General Insurance is now part of ICICI Lombard General Insurance.

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Third party car insurance

Third party car insurance

Also known as third-party liability insurance, third-party car insurance is a type of coverage plan that assists you in covering any legal or financial liabilities that arise out of an accident. This type of car insurance applies to damage or loss you may have inflicted upon a third-party individual, vehicle, or any other property. However, it does not cover damages to your own car or you.

If you are found driving without a valid insurance policy, you will have to pay a hefty fine or, in some cases, face imprisonment. Moreover, you would have to cover all the financial and legal liabilities arising out of the incident.

Importance of third-party car insurance

Saves you money and efforts.

Avoid paying traffic fine

Avoid paying traffic fine

Being caught driving without a valid car insurance policy puts you in the wrong side of the law. You’ll have to either pay a monetary fine of ₹2000 or face imprisonment of up to 3 months when you are caught for the first time. Next time onwards the fine becomes ₹4000.

Avoid paying for others damages

Avoid paying for others' damages

A third-party insurance is the most affordable type of coverage you will find. Even though it doesn’t cover your own damages, you are protected from paying a large sum of money as compensation to third party damages resulted in an accident with your car.

Get Legal Support

Get legal support

Under this policy we will extend legal support to you in your defense proceedings in a court of law, should you need it.

Why is third party car insurance mandatory in India?

In India, if you want to buy a car, you have to buy car insurance with it. The law makes it mandatory for you to do so. As per the Motor Vehicles Act, you need to have basic insurance coverage to legally drive on the road. Since it’s the law, everybody has to get a policy. However, do you know why the rule is so? Every driver and every vehicle can become a part of an accident. In an accident, you might end up damaging your car and hurting yourself. For these scenarios, people buy motor insurance policy. However, insurance is more than just a legal purchase formality. In case of an accident where some other people or their assets/properties are involved, damage can happen both ways. This means both you and the other person involved are at risk. Hence, you have to buy a third-party car insurance to address any harm or damage that may come to another person or his/her property in an accident with your car.

What is covered by ICICI Lombard third party car insurance policy?

  • Inclusions
  • Exclusions
  • Third party property damage

    A third-party policy will compensate any individual that has suffered property damage due to your vehicle in an accident. This compensation for property damage is ₹1 lakh.
  • Third party injury

    Accidents put you at a great risk of not just property damage but also of physical harm to both parties involved. If the accident was caused by your car, you are liable to compensate for any injury or death caused to others. In a third-party plan, the coverage for third party injury is unlimited; the exact amount is decided by a court.

What’s not covered in a third party car insurance policy?

  • Own damages

    A third party car insurance policy does not cover any damages to your own vehicle.
  • Driving without a license or under intoxication

    A third-party policy will not cover any damages if you get in an accident while driving without a license or under the influence of intoxicants.
  • Learning to drive without a guide with a driving license

    If you are learning to drive and have a learner’s license, you should have a valid driving license holder with you to guide you. Any accident that may occur while you are driving without one will not be covered by a third-party policy.
  • Theft of vehicle

    The coverage of third-party car insurance is focused on legal and financial liabilities of the third-party. Coverage for vehicle theft is not covered.
  • Add-on coverage

    Add-ons are extra pieces of coverage that refine your policy further. However, they can only be bought with a comprehensive policy. Hence, add-on coverages like No claim bonus, Zero depreciation, key replacement, etc. are not covered in third-party plans.

Features of third-party insurance offered by ICICI Lombard

ICICI Lombard is one of the most reliable general insurance companies in the Indian market. Hence, it is often the benchmark of what an insurance product should be like. This applies to third-party insurance as well. It can protect you from legal liabilities arising out of:

  • Permanent injury of a third-party

  • Death of the third-party

  • Property damage to the third-party

Just like most other insurance providers, a third-party plan with ICICI Lombard has a tenure of one year.

Feature Benefit of ICICI Lombard third party insurance
Premium Starting from ₹2,072
Policy buying Seamless online insurance buying
Injury to third party Unlimited (decided by the court)
Property damage to third party Up to ₹1 lakh
Legal support Defence representation in court

How does third-party car insurance work?

As the name suggests, a third-party policy focuses on another individual involved in an incident that happened with your car. In such a situation, you are liable to pay compensation for any physical harm or property damage that this individual may face. Depending on the damage, this compensation can be too much for you to pay out of your own pocket. Moreover, there can be a legal issue if the third-party chooses to take the matter to the police or the court. In such a situation, we will cover the costs for you. ICICI Lombard will cover all liabilities that are included in the terms and conditions of your coverage. We will compensate the third-party for injuries and property damage. Hence, having a third-party insurance cover reduces the financial burden in the case of an accident or any other mishap.

Is third party car insurance expensive?

No, a third-party insurance is one of the cheapest insurance products you will find. The price of the insurance product depends on the coverage it offers. In the case of a third-party plan, the coverage is solely for the liabilities that may arise out of an accident. This can include financial liabilities like paying compensation for injuries or property damage. It also includes legal liabilities like having to deal with the FIR that has to be filed after the incident. All of these combined can take a toll on your pocket. In such a scenario, a third-party insurance plan covers for you.

Price for third-party insurance

The insurance regulatory body, IRDAI, has standardised premium for third party car insurance, and it depends only on the cubic capacity of your car. This means the price you pay for a third party policy is the same irrespective of the insurer.

Vehicle Third-party insurance price
Under 1000 cc ₹2,072
1000 cc to 1500 cc ₹3,221
Over 1500 cc ₹7,890

Third party car insurance is cheap, but is it adequate?

Having a third party cover for your car is necessary, but it may not be sufficient. A third party policy protects you from unexpected liabilities that may amount in lakhs. It also saves you from getting a traffic fine while driving. But your own car remains at risk. You’ll have to bear all the repair costs on your own if your car gets damaged. This is why a comprehensive car insurance policy is recommended for any car owner.

“But I hardly take my car out on the road.”

Your chances of getting into an accident may be lower, but what about theft? Every year, thousands of motor theft cases are reported to police and it is the least solved crime as per police data#.

“But my car is very old.”

It’s true—as your car ages, its value reduces due to depreciation. This means your car’s insured declared value becomes lower. But it also means that your premium for own-damage will be lower. Why pay for any damage when you can get it covered at an affordable price.

Advantages & disadvantages of third party car insurance

Advantages
It’s cheaper than a comprehensive policy.
Protects you from sudden liabilities.
Allows you to drive without trouble from the law.
Disadvantages
Doesn’t cover damages to your own car.
Doesn’t cover you if your car gets stolen.
Doesn’t allow you to customise your plan.
Doesn’t support you if your car breaks down.

Comparing third-party insurance and comprehensive insurance

Benefit Third party insurance Comprehensive insurance
Damages to third party property
Third party injuries
Accidental damage to own car
Car theft
Natural calamities
Fire, riot, terrorist activities
Up to 50% No Claim BonusF
Customisable plan
Breakdown support
Zero depreciation
Engine protectG

What if I already have third party insurance for my car?

Having third party car insurance doesn’t mean you can’t get a policy to cover damages to your car. We have introduced stand-alone own-damage private car package policy (OD policy) just for this. You can now choose your car’s coverage, customise the plan, and pick add-ons of your choice and buy an OD policy online seamlessly.

“My third party policy is from another insurer.”

No reason to stress. You can still get a stand-alone own-damage policy from us. As third party and stand-alone own-damage policies have different type of coverage, you can avail the two policies from different insurers.

How to renew third-party car insurance online?

All you have to do is visit our website and click on Renew. Fill in your policy number and make the payment to renew your policy instantly. You will receive your new policy documents through e-mail.

Online renewal also offers you a lot of options. One such option is to review your coverage and get a better deal. While renewing your policy online, you can go for a different coverage without having to go through the hassle of buying a new policy.

How to claim for a third-party car insurance?

The process of making claims in third-party policies is different than that of comprehensive policy. Due to the legal liabilities involved, the process itself has legal formalities that need to be carried out. Moreover, the process for making claims can be different if there is a special condition involved in the incident. Here is the basic process of making a third-party insurance claim:

  • 1
    Notify us of your accident.
  • 2
    The third-party has to file an official FIR of the incident.
  • 3
    The case has to be registered in the Motor Vehicle Tribunal.
  • 4
    The case will then have a hearing at the tribunal. You will have to provide evidences and testimonials regarding the incident.
  • 5
    The tribunal will then declare the result of the case and declare guidelines accordingly for the claims settlement process.
  • 6
    The claim amount is then disbursed as decided by the court.

Reviews and ratings
for third-party car insurance

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  • Our customers have rated us

    Based on 132 reviews

Frequently asked questions on third party car insurance

Is third-party car insurance mandatory?

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 INR 2,000. Depending on your driving record, you may also have to face imprisonment.

If you claim for a 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 you 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 INR 1 lakh.

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

Unless the situation requires, 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 a all-rounder coverage for your car, then third party liability policy is not enough, as it doesn’t cover any damages to your own car. It comes with a host of other features as well, 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 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 are handled by the Motor Vehicles Tribunal. It is a court of law that deals with issues regarding the right amount of compensations, 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 same. However, there can be a difference in coverage, premium, and purchase process.

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