What Happens When You Only Have Third-Party Car Insurance?

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Updated on Jan 03, 2024

We know that third-party car insurance is mandatory, and without this cover, you cannot drive vehicles in India. But, even with a third-party cover can you be at peace while driving on the Indian roads? Is third-party car insurance enough? Let us find out in this post!

The motor laws of India make it compulsory for every car owner to have third-party coverage to drive freely on the Indian roads. But you may already know that the third-party cover protects only the third-party damages caused by your vehicle and doesn’t cover your car against any mishap. So, what exactly happens if a person has only third-party vehicle insurance? Let’s find out!

Is your Third-Party Car Insurance Enough for You?

When it comes to complying with the Motor Vehicle Act of 1988, third-party vehicle insurance is enough to drive your car. So, in that sense, yes, your third-party coverage is enough for you to drive on the roads in India legally. However, you must note that third-party insurance doesn’t cover your car from any unforeseen damage sustained on the road.

What does Third-Party Insurance Cover?

Third-party car insurance is a four-wheeler third-party insurance policy that complies with and compensates for the third-party damages and liabilities caused to a third-party person or property by your car. It includes injury, death, and disability of a third-party person, as well as any kind of property damages caused by the insured car

There are several benefits of third-party insurance. In case your insured car hits and injures a third-party person or damages a third-party property, your third-party insurance will compensate for the damages caused. In case of third-party property damage, the compensation offered is up to INR 7.5 lakh. On the other hand, if your car injures a third-party person or causes their disability or death, the compensation offered is unlimited, which is decided by the Motor Accident Claim Tribunal.

So, as far as the legal liabilities and requirements are concerned, a 3rd party car insurance policy is enough to cover the same. However, when it comes to protecting your own car, you cannot expect any compensation from your third-party car insurance.

What is the Need for a Comprehensive Car Insurance Policy?

As mentioned above, if you need insurance just to comply with the motor laws of India, third-party insurance is enough. However, if you want to protect your own car against damages or want to buy some additional rides, you would require a comprehensive car insurance plan.

Below are some reasons that make a comprehensive car insurance plan better as compared to third-party insurance:

1. Shields your Car:

The best thing about third-party car insurance is that it covers your car damages caused by accidents and unforeseen events, along with covering third-party liabilities. If your car gets damaged due to natural calamities, fire, man-made hazards, theft, etc., the comprehensive coverage works best against them. Thus, you get dual protection under a comprehensive plan.

2. Allows you to Avail of Add-Ons:

Since a third-party policy doesn’t cover your own car damages, it also doesn’t allow the insured to avail added riders with the third-party coverage. Hence, there is no scope to enhance a third-party insurance policy, and it only covers third-party damages. So, it would help if you had a comprehensive plan to allow enhanced protection by availing add-on riders with regular insurance.

Comprehensive vs. Third-Party Insurance

Here are some key differences between third-party and comprehensive insurance plans:

Feature 

Third-party car insurance 

Comprehensive car insurance 

Coverage details

It offers coverage for third-party liabilities only

It provides coverage for both third-party damages as well as your car damages

Advantage 

It protects against injuries and damages that your car causes to any third-party

It protects against both third-party damages and injuries as well as compensates for the damages caused to your car

Limitations

Third-party policy doesn’t offer coverage for your own car

It is more costly as compared to third-party insurance as it provides dual coverage

Premium price 

This is cheaper as the premium price is determined by IRDAI

This policy is available at a higher premium price but offers all-inclusive coverage

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To Conclude 

To sum it up, one can only protect third-party liabilities and raise third-party claims with third-party insurance. You will be at a loss in case your own car receives any damage as you won’t be able to get any compensation for the same. Since accidents are unforeseen and unpredictable, it is better to have comprehensive vehicle coverage; for this, you must buy a comprehensive car insurance policy. At Paybima.com, you can view and compare numerous car insurance plans by several insurance providers to help you choose the best one that suits you.

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FAQs: What Happens When You Only Have Third-Party Car Insurance?

What is third-party insurance meaning?

As discussed in the post above, 3rd-party insurance is a liability-only insurance where the owner of the policy buys the protection against the claims of third parties.

Is it mandatory to have third-party bike insurance?

Yes, third-party insurance is mandatory for every vehicle, including bikes and other two-wheelers.

What is the 3rd party car insurance price?

Third-party car insurance price depends on various factors like the engine capacity of the vehicle, model and make, and so on.

Is third-party insurance mandatory?

Yes, third-party insurance is mandatory for every vehicle, including two and four-wheeler vehicles.

Can I get a cheap two-wheeler 3rd party insurance?

The price of two-wheeler insurance depends on many factors, including engine capacity and others. You may compare several policies offered by various insurers to buy the best third-party insurance plan.

What is the cheapest 3rd party car insurance available?

There are many insurance providers offering third-party insurance policies. To buy the cheapest plan, you can compare different policies by different insurers and buy the best one that suits you.

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Jan 03, 2024
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PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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