InsuranceVehicle Insurance

Be careful if you are doing Third Party Insurance!

Reading Time: 8 minutes

The most important thing in this article is that if you use any car, it is mandatory to insure that car. According to the Motor Vehicle Act, it is necessary to have Vehicle Insurance but when it comes time to do Vehicle Insurance, everyone has the same question of whether to do Comprehensive Insurance or Third Party Insurance. Which insurance is more beneficial?

Just like a driving license and registration certificate, car insurance is also important, so remember the insurance renewal date and renew the car insurance before the date expires. If your car is ever impounded by the police and you do not have a valid insurance policy, you may face a hefty fine.

As per the government decision, we should at least have third party insurance for our cars but most of the people are driving uninsured cars on the road. That is why the government is taking strict action against those who violate such rules.

The general public avoids taking insurance, so it is necessary to take at least Third Party Insurance as per government regulations. Now the government has said that they at least do third party insurance, what common people do is only do third party insurance, when there are so many benefits of comprehensive insurance, car owners now only do third party insurance.

Suppose a person has third party insurance and if his car meets with an accident and in that accident, his car is damaged as well as a person in front of him, then in this third party only the damage caused to the other person is covered only by this third party insurance. This person will have to bear the cost of repairing his own car. On the other hand, if this person had comprehensive insurance, he would have been able to claim the cost of repairing his car.

Keeping the above situation in mind, let us take a detailed look at Comprehensive Car Insurance and Third-Party Car Insurance

What is Third-Party Car Insurance?

If you want to drive in India, it is mandatory to insure your car at least. In third party insurance, the damage caused to the other party due to your car is compensated. If your car damages the car in front of you, the cost of repairing that car is covered by your insurance. Also, if someone gets physically injured due to your car, the hospital expenses are also paid from this insurance.

What is Comprehensive Car Insurance?

Comprehensive Car Insurance is more beneficial than Third Party Insurance. In this, you also get the cost of repairing your car by signing the other person’s compensation. More and more, our car has small accidents which cause a lot of damage to the car, such as hitting the car with another car, while parking the car in the parking lot. If you have comprehensive insurance for your car, the damage caused by such a small reason is covered in the insurance.

Comprehensive Car Insurance vs Third-Party Car Insurance

To know the main differences between Comprehensive Insurance and Third Party Insurance, you have to consider the following points in which you will notice the difference between these insurances. And it will definitely come in handy when you buy insurance.

Insurance Coverage:

Comprehensive insurance covers various types of incidents like theft, loss due to natural calamities, accidents, etc. Comprehensive insurance covers various types of incidents such as theft, loss due to natural calamities, loss of your car in unfortunate events like accidents, and compensation for damage to the person in front of you is also covered in Comprehensive insurance. On the contrary, in third party insurance, only the loss caused by the other person is covered.


Premium rates of third party car insurance Insurance Regulatory and Development Authority of India (IRDAI) is decided by the insurance regulatory body and the premium rate of comprehensive insurance depends on the price of the vehicle you are going to insure, how many cc engines it has, and where you are going to use the vehicle.


The most important thing is that comprehensive insurance is not mandatory for you but you have to have at least third party car insurance for your car which is compulsory. And even though you know the benefits of comprehensive insurance, if you go for third party insurance, you will definitely have a lot of money to repair your car.

Why Should You Buy Comprehensive Insurance?

After reading the above points, you must know that comprehensive insurance is more beneficial than third party insurance but if you still have any doubts, below are some important points that will make it more clear which insurance is beneficial for you.

Premium Rates: You may say that the premium rates are very low for third party insurance but comprehensive insurance is always beneficial when it comes to the coverage of various incidents. You will definitely get Value For Money in Comprehensive Insurance.

Customizations: You can avail add the plan along with your comprehensive insurance plan like additional coverage, also you get no claim bonus which reduces the next premium rate. Third party insurance does not have such add-on facilities.

Risk: In a comprehensive insurance plan, you definitely get more risk coverage for your car.

Briefly important

Although comprehensive insurance may seem expensive, you should take comprehensive insurance so that if unfortunately, your car meets with an accident, you can claim the car repair amount to get your car fully repaired. Most of companies also offer a cashless claim facility so that you don’t have to spend money immediately to get the car repaired. So, always take comprehensive insurance while insuring the car so that you don’t have to bear the burden of repairing the car due to an accident.

Reasons for Car Insurance Claims Rejection

No matter what kind of insurance you take, there are some things you should know, such as what are the terms and conditions of the insurance, and what kind of losses are covered by your insurance. Now let us know the following things related to insurance.

  1. All company policies of comprehensive insurance cover losses in the following events:
  2. Natural calamities like floods, storms, earthquakes.
  3. Damage to your vehicle in an accident
  4. Car and bodily damage caused to the other person in the accident.
  5. Vehicle theft.
  6. Damage due to car catching fire.

In case of accidental death, the heirs get compensation. Now the government will charge every vehicle owner Rs. Accident insurance of 15 lakhs has been made compulsory. Your Rs. Your car can be registered only if you have accident insurance of 15 lakhs.

Very Important: If you have more than one car then for each car this Rs. Is it necessary to have an accident insurance of 15 lakhs? And if there is, for each of those insurances, you will have to pay an additional Rs.

Will you get an accident insurance cover of 15 lakhs?

Answer: When you buy a new car once, this 15 lakhs accident insurance cover applies to you for the cover period, but if you buy another car during the same period then this 15 lakhs cover not applies you again. This should be kept in mind while ensuring the second car so that the extra premium required for this can be saved.

As a consumer, one thing you should know is that under certain circumstances your insurance claim may be rejected:

1. If your claim is found to be false

One thing to keep in mind is that insurance does not cover any repairs to the car, but insurance is there to repair the damage to the car in an accident, but most of the time insurance companies have noticed that some customers have damaged a part of their car and need to replace it. Damage it yourself and then make an insurance claim that the car was damaged in an accident. So keep one thing in mind that it is illegal to make false claims.

2. Drunk driving

The most important thing is that drunk driving is a crime under the law and can even get you jailed, by drinking and driving you are putting your own life as well as the lives of innocent people on the road at risk. We do not get any insurance claim for any loss due to such an event.

3. Driving without driving license

If you do not have a driving license and still get into an accident while driving, the insurance company does not cover the loss.

4. Making modifications to the vehicle

When you take insurance, the insurance company insures your car as per the specification of your car, but if you do any modification in the car later and it causes any damage to the car, in such an event you do not get an insurance claim. Suppose you want to do some modifications in your vehicle, then for that you must take permission from Ritsar Road Transport Officer (RTO) and the insurance company. You may get permission but you will have to pay a higher premium.

5. In case of delay in reporting the damage to your vehicle to the company

Regardless of your insurance, every insurance and insurance company has a certain period for submitting a claim, which means that the information about the claim must be submitted to the company within a certain number of days. Generally, most of companies have a period of 30 days to give claim instigation. If due to any unavoidable reason, there is a delay in submitting the claim, then the entire decision as to whether to accept the claim rests with the company.

6. Breach of terms and conditions of insurance policy When you insure your car, the insurance company insures your car according to the type of car like passenger tax, commercial vehicle, 5 seaters, 7 seaters etc. Suppose if you use a passenger car for commercial use i.e. to carry some heavy goods and your car gets damaged, in such a situation you cannot get compensation from the insurance.

FAQ about third party insurance

What is third-party insurance?

Third-party insurance in India is a type of insurance coverage that protects you against claims made by a third party for damages or injuries caused by your vehicle.

Is third-party insurance mandatory in India?

Yes, as per the Motor Vehicles Act, 1988, third-party insurance is mandatory for all vehicles operating in India. It is a legal requirement to have at least third-party liability insurance coverage.

What does third-party insurance cover in India?

Third-party insurance in India covers the cost of damage or injuries caused to third parties by your vehicle. It includes property damage, bodily injury, or legal expenses resulting from a covered incident.

Can third-party insurance protect me from legal consequences in India?

Yes, third-party insurance can provide coverage for legal expenses if a third party files a lawsuit against you for damages or injuries caused by your vehicle.

What are the penalties for not having third-party insurance in India?

Driving a vehicle without valid third-party insurance in India can lead to penalties, including fines and possible imprisonment. It is important to ensure continuous insurance coverage to comply with the law.

Can I buy third-party insurance separately from comprehensive insurance in India?

Yes, in India, you have the option to buy third-party insurance as a standalone policy or as part of a comprehensive insurance policy that provides additional coverage for damages to your own vehicle.

Are there any limitations to third-party insurance coverage in India?

Yes, third-party insurance coverage in India may have limits and exclusions. It’s important to review your policy to understand the specific terms, conditions, and limitations of your coverage.

How is the premium for third-party insurance calculated in India?

The premium for third-party insurance in India is determined by the Insurance Regulatory and Development Authority of India (IRDAI) based on the type, make, and model of your vehicle, along with the engine capacity.

Can I transfer my third-party insurance when I sell my vehicle in India?

No, third-party insurance is non-transferable in India. When you sell your vehicle, the insurance policy cannot be transferred to the new owner. The new owner must obtain a fresh third-party insurance policy.

How do I file a third-party insurance claim in India?

To file a third-party insurance claim in India, you need to inform your insurance provider immediately after the incident, provide details of the accident or damage, and submit any necessary documentation, such as the police report and witness statements.

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