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Third Party Liability Car insurance

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Third Party Liability Car insurance

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Third Party Liablity Car Insurance

​What is Third-Party Car Insurance?


A Third-Party Liability Insurance offers financial cover to the insured person against any legal liability arising due to loss/damage caused to a third-party person or property. As per the Indian Motor Vehicles Act, a third party liability cover is mandatory under law and a basic requirement under a vehicle’s insurance policy.​ While choosing a car insurance policy, people often get confused whether to opt for a comprehensive car insurance policy or a third party car insurance policy. While a comprehensive car insurance policy offers overall protection against damages to your car as a result of incidents unrelated to accident / collision; a third party liability car insurance offers cover against any legal liability arising due to damages or injury caused by the insured to a third party.

What are the Benefits of Third Party Car Insurance?


Key Features Benefits by Reliance General

Property Damages to Third Party

Upto 7.5 Lakh

Personal Accident Cover

Available

Add Ons

Not Available

Buying Process

Online via Smartphone in 5 minutes

Property Damages to Third Party

As per MVA 1988

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How Does Third-Party Car Insurance Work?


In order to better understand the concept of third-party car insurance, let us look at some terminologies. For example, in the event of a car accident, the parties involved are as follows: 

  • First party: The insured person or policy holder
  • Second party: The insurance company 
  • Third party: The person who claims for the damages caused by the first party

  • In an event where an insured person with a third party insurance policy is held legally liable for injuries or damage done to a third party, then his/her insurance company indemnifies the insured person. Any losses arising due to damages or injury caused by the insured to a third party or third party’s property, are covered under the third-party insurance policy. In the event of a car accident, an insured person with a third party insurance policy is required to immediately inform the insurance company of the incident. If you were responsible for the accident (or the other driver believes you were responsible), it's almost certain that a claim will be made against you, which your insurance company will be expected to pay. So, for the speedy resolution of the claim it is of utmost importance that  the insurance  company is intimated about the accidental claim at the earliest This is how a third-party motor insurance works.
    ​​

    What Does a Third-Party Car Insurance Policy Cover? 

    A third-party insurance of car covers for the expenses incurred due to the following reasons: 

  • Death or bodily injury to a third party
  • Damage to a Third-Party Vehicle because of the insured vehicle
  • Damage to third-party property to an extent of Limit - Rs. 7.5 Lacs

  • Calculate your premium easily with our Car Insurance Calculator.

    What Does a Third-Party Car Insurance Policy Not Cover? ​


    When opting for a third party only car insurance policy, you must be aware of what benefits you’re missing out on. Let’s take a look at what third party car insurance does not cover: 

  • Cost of damages to a vehicle or the belongings in the vehicle in case of an accident​
  • Cover for losses incurred if your car or belongings are stolen or destroyed 
  • Coverage against damages to your own vehicle 

  • It would be wiser to opt for third-party motor insurance if you own an old inexpensive car model, which is cheaper to repair.​ Has your car insurance expired? Click here for easy expired car insurance renewal online.

    Advantages of a Third-Party Car Insurance


    There are several advantages of third-party car insurance. Let’s look at the advantages that you will be eligible for in case you buy third-party car insurance: 

    Enables You To Drive Legally 


    Under the Motor Vehicles Amendment Act, 2019, it is necessary to insure your car if you want to drive on Indian roads. Getting basic third-party car insurance will protect you from hefty fines.

    It Will Save You Time 


    You can buy third-party car insurance online with just a few clicks. This will save you time and money as you can buy this plan from the comfort of your home. 

    Coverage for Third-Party Person in case of Personal Damages 


    In case of an unfortunate event like an accident where you hurt someone physically or in severe cases, cause the death of the third person. Your third-party car insurance will provide coverage for the losses up to unlimited liability**. 
    In Note (** Compensation amount is decided/suggested by the court of law.)

    Coverage for Third-Party Property or Vehicle Damages 


    In case of an accident where it causes damage to one’s vehicle or property, your third-party car insurance will provide coverage  for the loss up to Rs 7,50,000/-. 

    Protects you in case of any physical injuries 


    In case you don’t have a personal accident cover, you can opt for it with your third-party car insurance. This way you can protect yourself and your family financially in the case of permanent disability or death due to an accident.

    Protects you from Unexpected Losses


    Indian roads are congested, and you can see several cars on the roads. So, an unfortunate event like an accident that is bound to happen. If you opt for a third-party car insurance policy, you don’t have to worry about the expenses that might incur in case of an unexpected accident loss. 

    Disadvantages of a Third-Party Car Insurance


    Nothing is perfect, not even your third-party car insurance as it comes with several disadvantages as well. Here is the look at the disadvantages that you might face if you buy third-party car insurance:

    Doesn't cover your own damages 


    Your third-party car insurance will not provide coverage against the damages and losses to your own car. To protect your car financially, you need to opt for a separate comprehensive car insurance policy from reputable insurers. 

    Doesn't cover damages due to natural calamities 


    No one can predict the future. Natural calamities such as floods, earthquakes, tsunami, etc. are some of the unfortunate events that no one has control on. In case your car is damaged due to a natural calamity, your third-party car insurance will not cover it. However, opting for comprehensive car insurance will surely protect you financially against the damage caused to your car due to both natural and man-made calamities. 

    You can’t opt for add-ons 


    There are several add-ons that enhance the coverage of your plan, but you can only opt for them in case you buy a comprehensive car insurance plan and not with third-party car insurance. 

    Why Buy Third Party Car Insurance From Reliance General Insurance?


    With a Reliance General Third Party Only Car Insurance Policy, you will get the following benefits: 

  • Cover for causing accidental injury or death to the third-party
  • Cover for accidental damage to the third party's property
  • Easy Claims with 98% Claim Settlement Ratio​

  • How to File a Claim for Third Party Car Insurance? 


    Given below are the vital points that you need to consider in case of a third-party insurance claim:

  • In an unfortunate event like an accident, the third-party must file an FIR immediately after the accident takes place. You must retain a copy of the said FIR and the Charge sheet filed by the Police. On happening of an accident causing injuries to the third party, you need to inform the police and your insurance provider, without any delay and share the valid documents of the vehicle including the driving licence of the driver.
  • In case of an accident, where you are not at fault or you have been impleaded in an accident, though not involved, file an FIR with the police against the person/s who have caused the accident or have impleaded you as a party to the case and defend the case in the court along with your insurer. 

  • In India, Motor Accident Claims Tribunal decides the claim for compensation amount to a third party. In case of personal injuries to a third-party, there is no upper limit, whereas, there is limited liability of insurance up to Rs 7.5 lakhs in the event of losses and damages caused to third-party property or vehicle depending on the involvement of the vehicle insured. A claims petition seeking compensation is filed by the third party before the concerned Motor Accident Claims Tribunal and the judicial proceedings start wherein the vehicle owner, driver and insurer is a party to the case.

  • If the damages and losses caused due to an accident are minor, then it is advisable to settle it outside the court as dealing with the court proceedings is a time-consuming process. 

  • When the matter is decided by the Tribunal and there no violation of the insurance policy and in case everything is in order, the compensation amount awarded by the Tribunal will be paid by your insurance provider to the third party.

  • Collect photographic evidence, if you can. This should include taking pictures of the accident site, pictures of the injury, damaged vehicle or property. This will also help the insurance company get a clear picture of the accident caused.

  • In case of a claim related to personal accidents, all you need to do is call customer care number and your insurer will take care of the rest. 

  • Disclaimer: The above information is for illustrative purpose only. For more details, please refer to  detailed policy wordings .

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    Third Party Four Wheeler Insurance Reviews and Ratings

    Average Rating:

    4.4(Based on 314 ratings)

    Showing 10 reviews

    • “Never knew it was so easy!”

      I always used to purchase my car insurance through my agent who would take his commission fee. But this time I bought it online on RGI website and it was a very smooth process. Now I will get car insurance for my other cars also from reliances website

      Deelip L15 March 2020, Mumbai
    • “Easy and Quick Car Insurance”

      Browsed many websites to buy car insurance but reliance had the best value for money insurance providing good coverage for my car at a reasonable premium

      Akshay W7 March 2020, Delhi
    • “Reliable car insurance plan”

      I purchased a car insurance policy for my 4 wheeler which covered the cost for repairing the damages in an accident. Would recommend everyone to get a comprehensive plan

      Amir S11 January 2020, Dhamtari
    • “Good offers for car insurance”

      Good policies for different car models. I took a quote for the two cars I have and received a good offer. Purchasing the policy was very easy and fast

      Sagar G17 December 2019, Bangalore
    • “Car insurance totally worth it”

      Right from the buying process to settling the claim, I had a very good experience with reliance. Go for it!

      Riyaz C2 October 2019, Delhi
    • “Fast access bike insurance”

      All the necessary aspects are covered by Reliance in the two wheeler insurance policy.The policy can be purchased within minutes online.

      Tasneem G18 September 2019, Airoli
    • “Satisfied by the insurance for car from Reliance”

      I chose the basic car insurance as it is my personal car and it covers everything that is needed.Can be purchased easily online

      Hazel F14 September 2019, Nainital
    • “Fast and easy car insurance”

      Covers everything and explanation given in detail for all types of car insurance which helped me choose well.

      Ronak S1 September 2019, Vizag
    • “Good car insurance policy”

      Fair price and easy application procedure for car insurance.Customer service is good as well

      Jay K24 August 2019, Ahemdabad
    • “Car insurance customer support is actually helpful”

      They actually know the needs of the customer and without wasting any time they gave me the best fit plan in such an affordable price. Good going Reliance car insurance

      Akash S20 August 2019, Baroda
    • See all reviews