Third Party Insurance

Accidents are unplanned and it can be due to luck, fate, or poor road conditions in India. There are chances of major injuries or property damage in a car accident. But you can be thankful if you already have a third party car insurance as a savior in such unfortunate situations.

We bring to you all there is to know about third party car insurance and how it can offer a great insurance coverage for your car.

About Third Party Insurance

A third party insurance for car is a cover to protect you from any major liability occurred during your own car accident, such as injuries or damage to third party property. Your insurance company will compensate you for repair and hospitalization costs of third party. Hence, you can get a financial cushion for repair work on the third party car.

A third party insurance is termed as an ‘act only’ cover support. 3rd party insurance means a bare minimum insurance coverage your car needs to have in order to ply on India’s roads. Not having even this bare minimum insurance will make you eligible for hefty fines if caught by a traffic policeman. Additionally, the loss to the third party becomes a personal liability to you if you have not taken insurance for your vehicle, thus making you pay out of your pocket.

What does Third Party Insurance Include?

A third party insurance provides the below coverage and includes:

  1. Third Party Liability

    The Liability covers in case of injury or death to the Third Party and it is unlimited. In case if the third party has lost his/her life, then the insurance provider will bear the compensation. Based on the FIR and case registered with Motor Accidents Claims Tribunal, the compensation amount is determined. This doesn’t depend on the deceased’s income but more on how much it has affected his/her family because of the loss. In case of a private car, the insurance cover for legal liability of the paid driver depends on the Workmen’s Compensation Act 1923. Similarly, a coverage for unnamed passengers can also be taken with a nominal additional premium of Rs. 50/person for a sum insured of Rs. 1 lakh up to a maximum of Rs. 2 lakhs.

  2. Property loss

    During an accident whatever property damage occurs, the compensation can be claimed for property damage through the third party insurance cover. According to IRDA norms, the damage covers up to Rs 7.5 lakhs. The lower the coverage, the lesser will be the premium.

  3. Personal Accident support for Owner

    In an accident, in case of death or injury to the owner-driver of the vehicle, then the third party insurance can compensate for this death/injury up to maximum of Rs. 2 lakhs. The compensation limit is given below:

    • If the nature of injury is death, then the compensation is 100%.
    • If the nature of injury is loss of eyesight or two limbs, then the compensation is 100%.
    • If the injury is loss of 1 limb or 1 eye, then the compensation is 50%.
    • If the injury makes the person completely disabled in other parts of the body, then the compensation is 100%.

Note: This coverage is subject to the below conditions being met:

  • The driver-owner is the actual registered owner of the vehicle.
  • The policy is named for driver-owner of the vehicle.
  • The driver of the vehicle has an effective license according to the provisions of rule 3 of the Central Motor Vehicles Rules 1989, during the accident.

What does it not cover?

There are a few exclusions that are to be understood under the third party car insurance.

  1. If the driver of the vehicle is the not the owner of the car, then it is not included on the cover.
  2. Any sort of direct or indirect occurrence due to radioactive contamination or nuclear weapons is not covered.
  3. Damage or loss or liability caused by war, invasion, etc. is not included.
  4. Any accident or loss which is not in the specified geographical boundary won’t be covered.
  5. Claims arising out of contractual liability.

The above-mentioned features are common exclusions. For more information, you can refer your car insurance documents.

When is third party car insurance better than comprehensive coverage?

Third party coverage offers only partial coverage for repairs and hospitalization (with coverage for only third party and nothing for self). On the other hand, comprehensive coverage offers protection for both third party and for self. Hence, you may be wondering when third party insurance will be a better choice than comprehensive coverage. Here are some reasons when a third party insurance will be a good choice:

  • When the vehicle value is very low
  • When you don’t need coverage for damage to own car or own bodily injury.
  • When you can bear costs for your own car damage without the need for any coverage
  • In cases where there is a hypothecation, the financer mentions in the agreement that till the time the loan is not repaid, the customer cannot go for a TP only policy. Thus it becomes compulsory to take a comprehensive policy. We strongly recommend extending third party coverage to be a comprehensive coverage so that you can get total value for money on the premium you pay.

Why choose Turtlemint?

It is important that you should know the basics of car insurance and the things to remember before you purchase one. You need to have all the necessary information and third party car insurance rates from different providers in order to make a decision of picking one company from the many options. For this you need not spend a lot of time and effort walking up to the office of each and every insurance company. You can eliminate these troubles and get quotes from multiple insurance companies from the comforts of your home or office.

How? It’s simple, just log on to Turtlemint and do a detailed third party car insurance price comparison of the different quotes available from different providers. If you have any query at any point in time during the comparison or buying process, we have a team of professional advisors who can assist you with any doubts or clarifications you may need to make during the purchase process.

Check out why opting for Turtlemint’s third party car insurance online makes total sense:

  1. You can get smart tips on saving money without any compromise on your cover.
  2. It is completely easy to make an online purchase with secure payment.
  3. You are offered with the best price on insurance with a holistic view.
  4. It gives 100% claim assistance.
  5. You can place your requirements and we recommend you with the best plan matching your needs.

FAQs

Yes, according to Motor vehicles Act 1988, India, it is mandatory to have a Third Party Insurance. It is illegal to drive a car on Indian roads without a policy.


The IRDAI revises premium every year, considering the ratio of claims made and loss for providers. Because of this, third party insurance rates for cars and bikes have become costly from April 1st, with the insurance rate rising up to 40%.

Here are the third party car insurance price 2017

  • The premium for small cars (up to 1000 cc) is currently Rs 2055. This denotes that the third party car insurance rates have increased by 39.9%.
  • The hike for medium size cars (1000 - 1500 cc) is about 40%, and is currently Rs. 2863.
  • In the case of bigger cars like SUVs (1500 cc+) the premium is hiked by 25%, to Rs. 7890 presently.

The comprehensive insurance policy has two components, own damage and the third party damage. But in case of third party insurance, only third party damage is factored in for claims.


The simple answer is, you should report the accident as soon as possible. In many cases insurance companies have 24-hour accident claim on mobile apps and hotlines.

Many insurance companies need policyholders to make claims within the specific time window of the accident occurring. But these limits are specific to each policy. If you are unsure about what is the appropriate time period within which you have to make a claim, then you can ask your insurance agent.