Your Guide to Claiming Third-Party Car Insurance

Under the Motor Vehicle Act of India, 1988, third party car insurance is mandatory for all vehicle owners in India. This policy covers damages caused to another person’s vehicle, property, or injuries in an accident involving your car. For instance, if your car dents another vehicle, third-party insurance pays for the repair. Not having this cover can result in legal penalties. 

If you are unsure what third party insurance premium rates are, how claims work or what premium rates apply, this blog will guide you through the essentials.

A third party car insurance policy is a mandatory cover that protects you against legal liabilities if your vehicle causes damage to the property of someone else or injures a person. It does not cover damage to your own vehicle or your injuries.

As per the mandates stated by the Insurance Regulatory and Development Authority of India (IRDAI), features of a third-party car insurance policy include:

When it comes to settling a claim for third party insurance, it is a complex process. Unlike a comprehensive car insurance policy claim settlement, calling the insurance provider to notify will not be sufficient. 

Here is a step-by-step guide on how to raise a third-party insurance claim:

Step 1: Inform your insurance provider and file a First Information Report (FIR) at the nearest police station. In cases of theft, fire, and road accident, filing an FIR is a must.  

Step 2: Take sufficient pictures of the damage caused along with the accident. 

Step 3: Motor Accidents Claims Tribunal then registers the case and goes through all the available evidence and testimonials. 

Step 4: After verifying, the Motor Accidents Claims Tribunal gives a date of hearing.

Step 5: This hearing and declaration process takes time, but once it is complete, you need to submit all the necessary documents. 

Step 6: Once the documents are verified, the insurance company will settle the claim. 

The following documents are necessary at the time of settling a third-party claim:

The IRDAI finalises the insurance premium, and it is a standard rate followed by all insurance companies. The latest premium pricing rates are: 

The third-party insurance policy premium rates for electric cars are:

Please note that the premium rates finalised by IRDAI are subject to change. 

The third-party insurance policy does not cover the following:

Here are some reasons why third-party insurance is necessary:

So, it has been established that you need a third party car insurance to be legally compliant to drive your car on Indian roads. This insurance provides you with financial coverage in cases of mishaps that might lead to loss of life or property of a third party. Based on the Motor Accidents Claims Tribunal, in case of an unfortunate death or disability caused by the insured car, the policy provider will calculate the compensation amount in respect of the deceased individual and pay the sum insured amount.