Is CTP Included in Comprehensive Car Insurance?

Yes, CTP (Compulsory Third Party) is included in a comprehensive car insurance policy. CTP insurance is a policy required by law to register and drive a vehicle. It covers the costs of injuries or death caused to other people in an accident.

What Does CTP Cover?

Compulsory third party (CTP) insurance covers the third parties if they get injured or their vehicles or property are damaged due to the policy-holder's vehicle. Since the Motor Vehicles Act makes insurance mandatory, all insurers include it as a default provision in their comprehensive policies.

A detailed description of what is covered in a comprehensive policy with a third-party component includes:

• Death or physical injury caused to third parties by an insured vehicle.
• Damage to third parties' property up to the limit of the policy.
• Legal expenses and compensation amount if you're found liable on third-party claims.
• Cover for accidental death of the owner-driver included in the policy or selected.

The insurer will compensate up to a fixed limit for a third party's property damage, so the limit is fixed. As regards the tariff for death and injury claims against a third party, there is no ceiling.

What Does CTP Not Cover?

CTP only covers for the damage you cause to a third party. It does not account for any loss or damage that you personally suffer, whether it is your own vehicle being damaged or you getting injured while you are the driver in a vehicle. CTP does not cover the following scenarios:

• Damage to your Car: Say your car gets dented, scratched, or written off after hitting a pole, etc., in an accident you are responsible for. CTP doesn't cover even a dime of the repair work or replacement costs.
• Stolen Car: In case your car is stolen, the third-party insurance coverage will not compensate you
• Accidents caused by natural disasters, fire: Damage to the vehicle caused by fire, floods, storms, or similar events is not covered by CTP.
• Injuries to you, the driver: Injuries to the driver of the car are dealt with separately through personal accident insurance and not via third-party liability cover.
• Vandalism and self-inflicted damage: Deliberate damage to your own car by someone with malicious intent, or damage caused by yourself, also falls outside CTP coverage.

If any of these apply to your requirements, comprehensive car insurance is the appropriate choice, as it adds own-damage cover on top of the mandatory third-party component.

Difference Between CTP and Comprehensive Policy

The table below shows what a standalone compulsory third-party (CTP) policy covers versus what a comprehensive policy covers. A comprehensive policy includes everything in the CTP column plus own-damage protection.

How to Add CTP Cover to Your Car Insurance?

If you buy a comprehensive car insurance policy, CTP (compulsory third-party) cover is already added in. But if you hold only a stand-alone own-damage policy, or your third-party cover has lapsed, here's how you can add it:

• Check your current policy: Look at your policy schedule to see whether third-party liability is listed. A comprehensive plan includes it by default, while an own-damage-only cover does not.
• Buy a stand-alone third-party policy: If you have own-damage cover but no CTP, you can purchase a separate third party insurance policy from any insurer. This is the minimum cover the Motor Vehicles Act requires.
• Go for a comprehensive plan: When it is time for car insurance renewal, it will be worth shifting from a third-party policy to a comprehensive plan, which covers own damage as well
• Be prepared with the necessary documents: You will need your RC copy and details of your previous insurance policy, including engine/chassis numbers.
• Pay and confirm: When you complete the payment, request the insured document to be sent over and check that the third party is highlighted in the cover. Keep the digital copy of the policy on your phone for quick reference.