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What is the Cost of Third Party Car Insurance in India?

A third-party liability-only policy, simply known as third-party insurance, is a mandatory motor vehicle insurance policy. It covers the financial damages to a third person due to an accident or mishap caused by one’s vehicle. Any damage to the vehicle, bodily injuries, temporary or permanent, of the third party is covered under this insurance. 


Liabilities covered under Third Party Car Insurance

There are three types of liabilities that third party car insurance entails. These are:


  1. Body injuries to a third person

  2. Permanent disability/death of a third person

  3. Damage to the property of a third person


The third party car insurance does not cover the damages to the owner’s vehicle. For that, other comprehensive car insurance packages are available.


Why is Third Party Insurance Necessary?

Third-party insurance is essential for hassle-free settlement of any legal or financial damages caused to a third person in an accident. It is one of the minimum requirements to drive legally in India. The newly amended Motor Vehicles Act of 2019 makes it mandatory for motor vehicles to have at least third-party liability insurance. 


The law has called for stringent measures for all vehicle owners. It imposes a fine of Rs. 2,000 and/or imprisonment for three months on the first offence. A further second offence will attract an increased penalty of Rs. 4,000 and/or three months of imprisonment. 


Cost of Third Party Car Insurance

Third-Party Insurance is comparatively cheaper than other comprehensive packages. The cost of third party insurance, called the premium amount, depends upon the type and model of the car. The premium cost varies as per the engine capacities of the vehicle and is broadly the same around different insurance companies.


For cars less than 1000 cc, a premium of around Rs. 2000 is charged. The premium amount varies around Rs. 3000 for the cars ranging between 1000 cc and 1500 cc. And for cars above 1500 cc, the premium amount is around Rs. 8000. 


Benefits of Third Party Car Insurance

Apart from the peace of mind that comes with complying with the laws, third-party insurance proves to be a great financial help in case of accidents. 


In case of bodily injuries, loss of one limb or loss of one eye to a third party, 50% of the compensation is given by the insurance company. In case of permanent disability or death of the third person during an accident, 100% compensation is to be paid by the insurance company. For the damages to the property, complete compensation is given up to around Rs 7.5 lakh to the third party. Generally, the insurance company pays directly to the third person or their solicitor.


Process

With the advent of online mechanisms, purchasing or renewing policies has become way easier. One can get the policy easily from phone wallet apps. It requires to fill the vehicle details and paying the necessary premium to get the motor insurance. In practice, it benefits both the owner and the third party. 


Add-ons to the Third Party Car Insurance

On payment of extra premium, users can avail of extra benefits with third party insurance. These include personal accident cover up to Rs. 15 lakh for the policyholder. The policyholder can also get insurance cover of co-passengers up to Rs. 2 lakh each with some extra payment. Further, an option is available to cover the legal liability for paid or hired drivers in case of an accident. 


You can skim through the policies offered by different providers to find the cheapest third party car insurance for yourself.


Also Read :- What are the various commercial vehicle insurances available in India?




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