Third-party car insurance, starting at just ₹2094/year*
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Up to 3 Years Coverage
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Up to ₹15 Lakh PA Cover
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Discounts for EV Cars
Third Party Car Insurance
Driving on Indian roads comes with surprises every day. Whether you're moving through busy city streets in Mumbai or Bengaluru, or cruising on highways, accidents can happen. A small bump into another car or damage to someone's property can lead to big legal problems and money trouble. That's why having a valid third-party car insurance is important for every car owner in India.
Third-party car insurance is a legally required policy that covers damages, injuries, or death caused to another person, vehicle or property. It's the basic insurance you must have by law to drive your car on Indian roads. This policy pays for damages you cause to others, but it doesn't cover repairs to your own car.
With IndusInd Third Party Car Insurance (formerly Reliance Third Party Car Insurance), you get your policy online in minutes. It's approved by IRDAI, works completely online, and protects you from high legal costs and money losses. You can buy coverage for up to 3 years*, skip the fines (₹2,000 - ₹4,000 or jail time), and get 24/7 help whenever you need it.
IndusInd Third-Party Car Insurance is designed to keep you moving forward with ease and is a great choice for responsible drivers looking for reliable protection, hassle-free services and strong legal compliance.
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Up to 3 Years Coverage*
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What Is Third-Party Car Insurance?
Third-party car insurance is a legally mandated insurance policy that protects you from financial liabilities arising from accidental damage, injury, or death caused to a third party.
Think of it like this: when you're driving, there are three people involved. The first party is you (the car owner). The second party is your insurance company. The third party is anyone else, another driver, a pedestrian, or someone whose property gets damaged.
If your car accidentally hurts someone or damages their vehicle or property, this insurance pays for it. You don't have to spend from your pocket. But remember, this policy only covers others. It does not cover damages to your own car. If your car gets damaged in the accident, you'll have to pay for repairs yourself unless you have comprehensive car insurance.
Why Is Third Party Car Insurance Mandatory in India?
It's required under the Motor Vehicles Act to make sure every car owner has basic insurance coverage on roads.
It ensures compensation for accident victims, so injured people or those with damaged property get money for treatment and repairs.
It reduces the burden on car owners facing sudden liabilities because accidents can cost lakhs in compensation that most people can't afford.
It must be valid at all times to legally drive on Indian roads, or you face fines and legal action.
Is Third-Party Car Insurance the Same as Liability-Only Insurance?
Yes, third-party car insurance and liability-only insurance mean the same thing. Both terms describe mandatory third-party insurance that covers only your legal liability towards others.
When people say "liability-only cover," they're talking about third-party cover, the basic legal liability motor insurance required by law. This policy pays compensation when you cause damage to someone else's vehicle, property, or body.
Now, how is liability-only car insurance different from comprehensive insurance? -- Liability-only (third-party) insurance protects others but not your own car. Comprehensive insurance, on the other hand, covers both damages to others and damages to your own vehicle.
So if someone asks about liability-only insurance, they're asking about third-party insurance. Both protect you from legal trouble and financial loss when you accidentally harm others on the road.
Benefits of IndusInd Third-Party Car Insurance
Protection Against Third-Party Property Damage
If your car damages someone else's vehicle, shop or property, this insurance covers repair costs up to ₹7.5 lakhs, provided TPPD is opted. This protects you from sudden, large expenses and legal cases.
Coverage for Third-Party Injury or Death
If a car accident involving your car results in injury or loss of life of the third party, this policy pays for medical bills and compensation to their family. The policy ensures victims get paid without you facing financial ruin.
Legal Liability Coverage
The Motor Vehicles Act, 1988, mandates at least third-party car insurance. Without it, you risk heavy fines and legal action.
Affordable & Legally Compliant Insurance
This IRDAI-mandated plan has fixed premiums based on vehicle type. EVs and hybrid cars get premium discounts of 15% & 7.5%, respectively.
Seamless Digital Purchase & Instant Policy
We offer quick and convenient buying, renewal and claims processes through both our website and the IndusInd Insurance app.
Nationwide Claim Support
Claim support works across India through 11,000+ garages. You can call the helpline 24/7, report claims through the app and get help with paperwork.
Types of Third-Party Car Insurance
My Employer is taking care of my Health Insurance and so I do not need one
Basic Third Party Liability-Only Policy
This is the standard third-party car insurance that every car owner must have by law. It covers three main things: injuries to others, death caused by your car, and damage to other people's property, like their car or shop.
You pay a fixed premium set by IRDAI based on your car's engine size. When an accident happens, and you're responsible, we pay the compensation. This basic third party car insurance policy is perfect if you want just the legal minimum coverage. It keeps you legal and protects you from paying lakhs from your pocket.
My Employer is taking care of my Health Insurance and so I do not need one
Long-Term Third Party Car Insurance (3 Years)
Long-term third-party insurance lets you buy coverage for multiple years, usually up to 3 years for new cars. Instead of renewing yearly, you pay once and stay covered for the entire period.
This is useful for new car owners. You lock in today's rates, save money if premiums increase later and avoid yearly renewal hassles. No paperwork every year, no risk of your policy lapsing. A lot of people choose this when buying a new car because it's easy and usually cheaper.
My Employer is taking care of my Health Insurance and so I do not need one
Add-ons You Can Include with Third-Party Policies – Mandatory PA Cover for Owner-Driver
Third-party insurance is basic, but the law allows certain add-ons for extra protection. These cover people, not your car.
Personal Accident (PA) cover for the owner-driver is required by law. This gives ₹15 lakh in compensation if you get seriously injured, permanently disabled, or die in an accident. You cannot skip this unless you already have separate PA insurance or your car is company-owned. The premium is just a few hundred rupees.
Who Should Buy Third-Party Car Insurance?
First-Time Car Owners Looking for Mandatory Legal Cover
If you just bought your first car, third-party insurance is your legal starting point. The law requires it before you drive. This policy saves you from paying fines, facing court cases or going to jail. New car owners often feel lost about insurance, but starting with basic third-party cover is easy and cheap.
Those Using Older Cars with Low Daily Usage
Got an old car that mostly sits at home? You probably don't drive much or take it on long trips. Spending big money on full coverage doesn't make sense for you. Third-party insurance gives you legal protection without the high cost. Your older car's value is low anyway, so basic mandatory cover works perfectly fine.
Budget-Conscious Drivers
Watching every rupee because of bills and expenses? Third-party car insurance costs much less than full coverage plans. You stay legal and protected without emptying your wallet. It is the cheapest way to follow the rules while saving thousands of rupees every year. You still get legal protection without the big premium amount.
Car Owners Who Primarily Drive in Low-Risk Urban Areas
Most of the time, you drive close to home, to work or on short trips in the city where traffic moves slowly. Major accidents happen less often in places people know well and where people drive slowly. Third-party insurance gives enough protection for daily city driving. You follow the law, stay protected from paying compensation, and don't waste money on extra coverage you don’t actually need.
Third-Party Car Insurance Inclusions and Exclusions
What We Cover
Third-Party Damages: You are covered for the repair and medical expenses for damage caused to someone or their property.
Third-Party Bodily Injury or Death: If any other person is injured by your vehicle, the compensation is covered under the policy
Personal Accident Cover (If Opted): If the car owner/driver gets seriously injured or dies in an accident, an amount of Rs. 15 Lakh is paid to them or their family.
What We Don’t Cover
Damage to Your Car: Any damage caused to the insured (your) car from accidents or collisions
Law Violations & Outside Coverage Zone: We cover all accidents except those that arise out of breaking the law or those that occur outside of India's borders.
Disclaimer: For the complete list of Inclusions and Exclusions, please refer to the policy wording here
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How Does Third-Party Car Insurance Compensation Work?
Here’s how compensation is determined under third-party car insurance based on the type and extent of damage or injury caused:
Third-Party Liability | Scale Of Compensation |
|---|---|
Damage to third-party vehicle/property | Up to ₹7.5 lakhs |
Partial disability (one eye, one limb) | 50% of the sum insured |
Permanent Disability (Loss of two eyes or one limb and one eye) | 100% of the sum insured |
The demise of the third party | 100% of the sum insured |
Third Party vs Comprehensive Car Insurance
Third-party insurance only covers damages you cause to others, their car, property, or injuries. It doesn't cover your own car. Comprehensive insurance covers both damage to others and your own car.
Third-party is cheaper because it covers less. Comprehensive costs more but gives full protection. Third party allows only PA cover and driver liability add-ons. Comprehensive offers many add-ons like zero depreciation and engine protection.
Parameters | Third-Party Insurance | Comprehensive Insurance |
|---|---|---|
Legal Requirement | Yes, mandated as per Motor Vehicle Act, 1988 | Yes, compliant with the law since it includes a Third-party plan |
Third-Party (TP) Liability Coverage | Covered with no protection offered to your own car | Covered with additional protection for your own car |
Own Damage (OD) Coverage | Not Covered | Bundled with Third-party coverage under one plan |
Premiums | Low (Basic Coverage) | Higher (More Coverage) |
Add-Ons Availability | Not Available | Available |
Recommended For | Owners of a car that is older and not used very often | Mostly recommended to frequent car users for complete protection |
Which One Should You Choose?
Choose Third Party If
If you want the minimum mandatory coverage required by law. It's good for old cars with low value, people who drive rarely or those on tight budgets. You stay legal and protected from paying compensation to others.
Choose Comprehensive If
If you want broader safety for yourself and your car. It's ideal for anyone who requires a wide range of coverage that can be customised to suit their usage needs. You get complete protection, both for others and your own vehicle damages.
Eligibility Criteria for Buying Third-Party Car Insurance
Age & Ownership Criteria
You must be the registered car owner with a valid Registration Certificate (RC) from the RTO. You need a valid Driving Licence (DL) matching your vehicle type. Without these documents, you cannot buy insurance.
Car Type & Usage
This insurance is for private cars used personally, for office, family trips, and daily errands. If you use your car commercially (Ola, Uber, taxi), you must declare this. Commercial use needs different coverage. Not declaring can lead to claim rejection.
Geographical Validity
Valid across all of India, all states and union territories. Drive anywhere from Kashmir to Kanyakumari. For driving to Nepal, Bhutan, or Bangladesh, you need a special geographical extension. Standard policy doesn't cover outside India.
How Much Does Third-Party Car Insurance Cost?
Factors That Affect Premium
Third-Party Car Insurance Premiums for Private Cars
Private Fuel-Based Cars
Engine Capacity | Premium for 1 Year | Premium for 3 Years |
|---|---|---|
Up to 1000 cc | ₹2,094 | ₹6,521 |
Above 1000 cc up to 1500 cc | ₹3,416 | ₹10,640 |
Above 1500 cc | ₹7,897 | ₹24,596 |
For Private Electric Cars
Engine Capacity | Premium for 1 Year | Premium for 3 Years |
|---|---|---|
Up to 30 kW | ₹1,780 | ₹5,543 |
Above 30 kW up to 65 kW | ₹2,904 | ₹9,044 |
Above 65 kW | ₹6,712 | ₹20,907 |
Third-Party Car Insurance Premiums Rates for Commercial Cars
For Commercial Cars (Not Exceeding 6)
For commercial cars, third-party insurance premiums are set by the IRDAI based on engine capacity and include a fixed rate per licensed passenger. Here's a breakdown of the current rates:
Engine Capacity | Total Premium | Per Licensed Passenger |
|---|---|---|
Up to 1000 cc | ₹6,040 | ₹1,162 |
Above 1000 cc up to 1500 cc | ₹7,940 | ₹978 |
Above 1500 cc | ₹10,523 | ₹1,117 |
For Commercial EV Cars (Not Exceeding 6)
For hired commercial electric cars, the IRDAI offers lower third-party premium rates based on motor capacity (kW), along with per-passenger pricing. Here's the latest rate chart:
Engine Capacity | Total Premium | Per Licensed Passenger |
|---|---|---|
Up to 30 kW | ₹5,314 | ₹988 |
Above 30 kW up to 65 kW | ₹6,749 | ₹831 |
Above 65 kW | ₹8,945 | ₹949 |
How to Buy & Renew Third-Party Car Insurance Online
Buy Online
Go to the top of this page> Click on car > Select ‘Buy’.
Enter your car’s registration number and your mobile number > Click on ‘View Price’.
Choose your coverage and policy duration > Click ‘Proceed’.
Enter your KYC details on the next page and upload any required documents.
Pay using your preferred mode of payment > Get Instant Policy.
Renew Online
Go to the form at the top of this page and click on the ‘Renew’ tab.
Enter your policy number or mobile number and click "Submit" to get started.
Review and modify your plan if you want to upgrade.
Confirm the renewal premium and pay online via UPI, card, or net banking.
After your payment is processed, you will receive your renewed car policy instantly.
Car insurance starting at just ₹2094 per year*!
Insure Your Car Today and Avoid Fines!
Our car insurance plans ensure you stay on the right side of the law. We offer several types of plans, including long-term policies, so you stay insured longer!
Why Timely Renewal Matters
Stay legal on roads
Driving without valid insurance leads to fines of ₹2,000-₹4,000 or jail up to 3 months under the Motor Vehicles Act regulations.
No gap in coverage
If an accident happens during a gap period, you pay all compensation from your own pocket without any insurance support available.
Avoid inspection hassles
Timely renewal means no vehicle inspection required. Expired policies need inspection before renewal, which causes delays and adds extra inspection costs.
Keep your NCB benefits
Renewing without breaks maintains your No Claim Bonus discount. Late renewals mean losing these valuable discounts and facing higher premium amounts.
Continuous legal compliance
Your right to drive legally on Indian roads depends on having an active, valid policy at all times without any gaps.
What If Your Policy Has Expired?
My Employer is taking care of my Health Insurance and so I do not need one
Vehicle inspection required
Expired policies need a physical inspection before renewal. An inspector checks if your car is roadworthy and has no existing damage or issues.
My Employer is taking care of my Health Insurance and so I do not need one
Penalty and legal risks
If you drove during the no-insurance period or caused any accident, you face heavy fines and legal action from traffic authorities.
My Employer is taking care of my Health Insurance and so I do not need one
Loss of continuous benefits
Gap in coverage means you lose benefits like easy renewal process, NCB protection, and preferential premium rates that continuous policies offer.
My Employer is taking care of my Health Insurance and so I do not need one
Grace period varies
Some policies allow a 15-90-day grace period for renewal, but this isn't guaranteed and varies by different policy terms. An inspection is not required for third-party insurance.
My Employer is taking care of my Health Insurance and so I do not need one
Extra costs and delays
Expired policy renewal involves inspection fees, additional paperwork requirements, processing delays, and a possible increase in your final premium amounts charged.
Documents Required for Third-Party Car Insurance
Basic Required Documents
Registration Certificate (RC): Your car's registration document showing ownership details and vehicle information. It must be valid and match the vehicle that you are insuring.
Previous policy details: If renewing, provide your old policy number and a copy. For new policies, this is not needed, but it helps in verification.
Driving License (DL): Valid driving license in your name, matching the vehicle type. Must not have expired at the time of buying insurance.
KYC documents: PAN card, Aadhaar card or passport for identity proof. Address proof like Aadhaar, utility bills or a passport. Bank details for claim settlements.
Additional Documents if Switching Insurer
No Objection Certificate (NOC): If switching from another insurer mid-term, get an NOC from your previous insurer stating they have no objection to the transfer.
Claim history: Your previous insurer's claim history document showing claims made in past years. This affects your premium and NCB eligibility.
Policy cancellation proof: If cancelling mid-term with the old insurer, get a written cancellation confirmation. Some insurers need this before issuing a new policy.
Transfer letter: Request a transfer letter from your old insurer if you have NCB or other benefits to carry forward to the new policy.
How to File a Third-Party Car Insurance Claim?
If You are the Victim
Inform the Insurer: Get the policy details from the third party and their contact details in the event of an accident.
Collect Evidence: Get photographs of the damage and collect contact details and statements of any witnesses.
File an FIR: File a First Information Report (FIR) at the local police station, and get a copy of the FIR report.
Case Transferred to MACT: The insurer will transfer your case to the Motor Accident Claims Tribunal (MACT) for further processing.
Claim Settlement: The tribunal decides your compensation amount and the vehicle owner will pay it as per their final decision.
If You Caused the Damage
Claims Registration: If you're liable to pay compensation, the other party must collect your policy details and file the claim and FIR.
Inform IndusInd General Insurance: Next, inform us immediately at +91 22 48903009 and submit your claim documents.
Case Transferred to MACT: We will transfer your case to the Motor Accident Claims Tribunal (MACT) for further processing.
Notify Us for Legal Notices: If you get a legal notice from the tribunal, notify us immediately, and we will address any legal consequences as per your policy terms.
Claim Settlement: The tribunal decides the compensation amount and we’ll settle the claim and pay it as per their final decision.
Claim Documentation Needed
Basic Documents For All Claims
- Policy copy showing your insurance details and coverage period
- Valid Driving License of the person who was driving at the time of the accident
- Registration Certificate (RC) of your vehicle
- FIR copy from the police station where the accident was reported
- Photographs of the incident scene and damaged vehicles/property
Additional Documents If You're The Victim
- Medical bills and reports if you or passengers got injured
- Repair estimates or bills for your damaged vehicle or property
- Witness statements with their contact details
- Your bank details for receiving the compensation amount
Additional Documents If You Caused Damage
- Details of the victim and their vehicle/property
- Any legal notice received from the victim or the tribunal
- Survey report if appointed by the insurance company
Claim Settlement Timelines
- According to IRDAI rules, motor insurance claims should be settled within 7 days after the surveyor submits their report. The insurance company must act quickly.
- However, third-party claims involve tribunal proceedings, so they typically take longer than own damage claims. The MACT tribunal needs time to review evidence, hear both parties, and decide fair compensation.
- Simple property damage claims may settle faster, within a few weeks to months. Due to extensive investigation and legal processes, major injury or death claims require 6 months to 2 years.
Key Takeaways
In January 2025, the Union Finance Ministry proposed measures to link vehicle-related services with insurance. This means the government may restrict fuel, FASTag and license renewals for uninsured vehicles.
This means that once these laws are passed, vehicles without third-party insurance may not be able to access fuel if they are uninsured.
Third-party insurance by IndusInd General Insurance (formerly Reliance General Insurance) is a mandatory requirement under the Motor Vehicles Act of 1988. IRDAI sets the premiums for a third-party car insurance policy, and they are the same across all insurers.
Our third-party car insurance policy covers your legal and financial expenses in case you cause damage to someone else’s vehicle or property. We offer cashless claims at 11,000+ network garages with 24/7 customer support you can rely on.
There is also a 4-year premium freeze (between 2022 - 2025) on third-party premiums, so this could be your chance to get an affordable rate on your third-party car insurance plan before the rates are revised again.
Plus, if you also need coverage of your own damages, you can buy our comprehensive car insurance plan and customise it with our 13+ add-ons (with 3 EV-specific add-ons). Get our affordable third-party car insurance today and drive safely with your #CarKaYaar.
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