Third-Party Car Insurance

Third-party car insurance, also known as liability insurance, covers damages you cause to others in an accident. It includes bodily injury and property damage liability, ensuring financial protection against legal liabilities.

Purchasing third-party car insurance online offers convenience and often better rates. This type of policy does not cover damages to your own vehicle; it solely focuses on third-party insurance coverage.

In India, third-party four-wheeler insurance is mandatory for all vehicle owners. It ensures that victims of road accidents receive due compensation for injuries or property damage.

By securing insurance for your car under a third-party plan, you comply with legal requirements and protect yourself from potential financial burdens arising from accidents.

Also Read: How to Get A New Car Insurance Policy?

Legal Requirement: In India, the Motor Vehicles Act of 1988 mandates that all vehicle owners have third-party insurance. Driving without it may require you to pay fines and penalties.

Financial Protection: This insurance covers liabilities arising from injuries, death, or property damage caused to a third party by your vehicle. It shields you from substantial out-of-pocket expenses.

Affordable Premiums: Opting for cheap third-party insurance ensures compliance with legal requirements without straining your budget. It is a cost-effective way to stay protected.

Peace of Mind: Insurance for car third-party liabilities allows you to drive confidently, as you are safeguarded against unforeseen incidents.

Read More: How to Check Car Insurance Expiry Date?

Legal Obligation: The Motor Vehicles Act of 1988 requires every vehicle to have at least third-party insurance. Driving without it may require you to pay a fine ranging from ₹2,000 to ₹4,000.

Financial Protection: This insurance covers liabilities for third-party injuries, death, or property damage caused by your vehicle. It helps ensure that victims receive their compensation without adding much of a financial burden on the vehicle owner.

Economic Stability: By covering third-party liabilities, insurance companies help reduce the financial strain on victims and the government. It promotes a more secure and stable society.

Affordable Premiums: The cost of 3rd party car insurance is regulated by the Insurance Regulatory and Development Authority of India (IRDAI) and is based on the vehicle's engine capacity.

Also Read: Tips on How to Choose Car Insurance For Your 4 Wheeler.

Third-party car insurance, also known as liability insurance, is essential for vehicle owners. It saves you from financial expenses, which may arise if you cause damage or injury to others in an accident. Here is how it works:

Coverage for Others: If you cause an accident, this policy covers damages to the other party's vehicle or property.

Bodily Injury Liability: It pays for medical expenses and compensation if an accident results in injuries or death to others.

Exclusions: This insurance does not cover damages to your own vehicle or personal medical expenses.

Claim Process: After an accident, the affected third-party files a claim against your insurer for compensation.

Legal Defence: If a lawsuit arises from the accident, TATA AIG undertakes the defence of proceedings in any court of law and covers associated costs.

Please Note: The Insurance Regulatory and Development Authority of India (IRDAI) predetermines the coverage limit for third-party car insurance based on the vehicle’s engine capacity. If the costs of damages or injuries exceed the policy's maximum coverage limit, the policyholder will be personally liable for the remaining expenses. However, if the policyholder cannot pay, they might face legal action from the affected third party.

Legal Compliance: The Motor Vehicles Act of 1988 mandates that every vehicle must have third-party insurance. Driving without it can lead to fines or imprisonment.

Liability Coverage: This policy covers legal liabilities that may happen due to injuries, death, or property damage caused to a third party by your vehicle.

Affordable Premiums: The cost of 3rd party car insurance provided by TATA AIG is generally more affordable compared to comprehensive policies.

Online Availability: We at TATA AIG offer online third-party car insurance policies. It allows you to calculate premiums and purchase and renew your policy anytime from anywhere.

Fixed Premium Rates: The Insurance Regulatory and Development Authority of India (IRDAI) sets the premium rates for third-party car insurance based on the vehicle's engine capacity. It ensures uniformity across insurers.

Third-Party Property Damage: The policy covers damages to third-party property caused by your insured vehicle. This includes repairs or replacement costs for the damaged property.

Third-Party Injury: Third-party car insurance includes bodily injury liability coverage. It pays for the medical expenses and lost wages. It also pays for the legal fees if you injure someone in an accident.

Personal Accident Cover for Owner-Driver: The policy includes a Personal Accident Cover of up to ₹15 lakhs for the owner-driver. This covers medical expenses and compensation in case of permanent disability or death due to an accident involving the insured vehicle.

Legal Expenses: Third-party car insurance covers legal expenses incurred while defending against third-party claims and lawsuits that may arise due to the accident.

Please note: A third-party four-wheeler insurance policy does not cover damages to your own vehicle due to an accident.

Own Vehicle Damage: Damages sustained by your own vehicle are not covered. For such coverage, a comprehensive car insurance policy is required.

Non-Accident-Related Damages: Damages caused to the insured vehicle that are not related to an accident are not covered. This includes instances like theft, fire, or any kind of natural calamities.

Driving Without a Valid Licence: Accidents occurring while driving without a valid driver's licence are excluded from coverage.

Driving Under the Influence: Incidents happening when the driver is under the influence of alcohol or drugs are not covered.

Unauthorised Usage: Using the vehicle for purposes other than those stated in the policy, such as commercial use or speed racing, is excluded from coverage.

Also Read: Difference Between Comprehensive and Third-Party Car Insurance.

The third-party car insurance premium rates are determined by The Insurance Regulatory and Development Authority of India (IRDAI). It is based on the car engine's cubic capacity and is subject to revisions every year. Third-party insurance renewal based on the revised price can be done online.

The third-party car insurance premium rates for FY 2023-24 are as follows:

1-Year Single Premium For Cars

3-Year Single Premium For Cars

1-Year Single Premium For Electric Cars

3-Year Single Premium For Electric Cars

In India, the third-party car insurance premium is primarily determined by the Insurance Regulatory and Development Authority of India (IRDAI). The only factor influencing the 3rd party car insurance price is the vehicle's engine cubic capacity (cc) or battery capacity (KW).

These standardised rates ensure uniformity across insurers. This allows vehicle owners to obtain the best third-party car insurance without worrying about price discrepancies. To facilitate customers, many insurers provide an online 3rd party car insurance option. This enables users to compare policies and conveniently obtain a 3rd party insurance quote.

Read More: How is your car insurance premium calculated?

Risk Assessment: Vehicles with larger engine capacities generally have higher power and speed capabilities. This can lead to more severe accidents and increase the chances of potential liabilities. Consequently, higher engine capacities are associated with increased risk, which justifies the higher car insurance premium rates.

Uniformity and Transparency: By linking premiums to engine size, IRDAI promotes transparency and fairness in the insurance sector. Policyholders can anticipate their premium costs based on their vehicle's specifications.

Car Engine-Based Insurance Premium: Implications for Policyholders

Cost Considerations: Owners of vehicles with larger engines should be prepared for higher third-party insurance premiums due to the standardised categorisation.

Policy Selection: When seeking the best third-party car insurance, it is essential to consider the engine size, as it directly impacts the premium. Utilising an online 3rd party car insurance platform can help in comparing different policies and premiums.

Premium Calculation Tools: Many insurers offer a car insurance premium calculator on their websites. By inputting the vehicle's engine capacity and other relevant details, policyholders can obtain a 3rd party insurance quote tailored to their vehicle.

Insurer's Reputation and Claim Settlement Ratio

Before purchasing a car insurance policy, research the insurer's reputation and claim settlement ratio. A higher ratio indicates a greater likelihood of your claims getting settled promptly. TATA AIG has a high claim settlement ratio, which shows the reliability of our claim processing. Reading customer reviews and testimonials can provide insights into the insurer's service quality and reliability.

Online Platform Usability

Opt for insurers that offer a user-friendly online platform for purchasing and managing your policy. We at TATA AIG offer features like a third-party car insurance premium calculator, instant policy issuance, and hassle-free renewal processes to enhance convenience. We also offer easy online claim processing with minimal documentation.

Customer Support Services

Efficient customer support is vital, especially during claim settlements. Verify the availability of multiple communication channels, such as chat, email, and toll-free numbers. TATA AIG offers prompt and helpful responses that significantly ease the claim process and address any policy-related queries.

Policy Exclusions and Limitations

Thoroughly read the policy document to understand exclusions and limitations. Common exclusions include driving under the influence of alcohol, unlicensed driving, and unauthorised vehicle usage. Being aware of these can prevent claim rejections and legal complications.

Additional Covers and Flexibility

Third-party insurance offers basic coverage for third-party liabilities. However, if you are looking for add-on features like zero dep insurance cover, roadside assistance, engine cover, etc., you may need to go for broader coverage like comprehensive car insurance. Assess your needs and consider opting for these to enhance your coverage.

No Claim Bonus (NCB) Benefits

Inquire about the No Claim Bonus; it is a discount on premiums for claim-free years. Accumulating NCB over time can lead to substantial savings. At TATA AIG, we provide clear information on NCB accrual and retention to help you get the most out of your car insurance policy.

Policy Renewal Process

Check the ease of the car insurance policy renewal process. Timely reminders, minimal documentation, and online renewal options make a seamless experience. Lapses in renewal can lead to penalties and loss of accumulated benefits. TATA AIG portal offers seamless policy purchase and renewal options to help you protect your car.

Policy Terms and Conditions

Understanding the terms and conditions of the car insurance policy is essential before purchasing third-party car insurance online. These terms define the scope of coverage, exclusions, and obligations of both the insurer and the policyholder. Carefully review key aspects like coverage limits, claim filing procedures, and premium payment schedules.

Claim Process

A smooth claim process is vital for hassle-free insurance coverage. Before finalising a third-party car insurance policy, understand how to initiate and track a claim. TATA AIG offers an easy online claims submission process with minimal documentation requirements and 24/7 claim assistance.

Read More: How to Choose the Best Car Insurance in India?

Simple and Seamless Purchase: Buying third-party car insurance from TATA AIG online is quick and hassle-free. Skip the queues and complete the process from the comfort of your home, anytime, anywhere.

Instant Policy Issuance: Receive your insurance policy instantly via email with TATA AIG's online platform. No more waiting periods to receive policy documents, and you can enjoy uninterrupted protection on the road.

Smart Policy Comparison: Compare different policies online to find the best third-party car insurance that suits your needs. Evaluate coverage, premiums, and other benefits for informed decision-making.

Effortless Renewals: Renewing your car insurance policy with TATA AIG is incredibly easy. Get timely reminders and complete the renewal process in just a few clicks.

Secure Online Payments: Make premium payments confidently with TATA AIG’s secure online payment gateways. These are designed to ensure your financial safety.

Accessible Customer Support: TATA AIG offers 24/7 customer support via phone, chat, or email. We are always ready to address your queries and provide assistance.

Instant Access to Policy Documents: You can access all your policy documents online, including your insurance terms and policy details. Download and retrieve them anytime you need.

Digital Records for Easy Management: Keep your insurance documents secure and organised digitally. Avoid the hassle of losing important paperwork.

Cost Effective: TATA AIG offers affordable car insurance rates. You can get a 3rd party insurance quote from our website and buy it online.

Visit the TATA AIG Website: Open the TATA AIG Car Insurance website.

Enter Vehicle Details: Enter your car's registration number and click 'Get Price'.

Provide Personal Information: Fill in the required personal and vehicle details as prompted.

Select Policy Type: Choose the 'Third-Party Car Insurance' option.

Review and Confirm: Verify the policy details and premium amount.

Make Payment: Complete the transaction using the available online payment methods.

Receive Policy Document: Upon successful payment, the policy document will be sent to your registered email address.

Visit the TATA AIG Website: Go to the TATA AIG Car Insurance page to renew your policy.

Choose Renewal Option: Click on “Renew your existing TATA AIG car policy” to proceed.

Enter Policy Details: Enter your car's registration number or current policy number, then click 'Renew'.

Verify Policy Information: Ensure all displayed details are accurate and up-to-date.

Complete Payment: Pay using the available online payment methods.

Receive Confirmation: After successful payment, your renewed policy will be sent to your email.

Also Read: Manual or Automatic Car Insurance

Filing a Claim as a Policyholder (Own Damage Claim)

Step 1: Secure the Scene and Ensure Safety

Immediately after the accident, ensure the safety of all parties involved. Move your car to a safe location, turn on hazard lights, and assist anyone injured. If required, inform the local authorities and seek medical help.

Step 2: Gather Information

Collect essential details about the accident, such as the date, time, location, and contact information of witnesses and the other involved party. Take photographs of the accident scene and the damages to your car as evidence.

Step 3: File a Police Report

Report the accident to the nearest police station and file an FIR (First Information Report). A police report is crucial while filing an insurance claim.

Step 4: Inform TATA AIG

Contact TATA AIG immediately to report the accident and initiate the claim process. You can do this through the company's helpline number or its website. Provide all the necessary details and information about the accident.

Step 5: Claim Survey and Inspection

A surveyor appointed by TATA AIG will inspect the damages to your car and assess the extent of the loss. Cooperate with the surveyor and provide all relevant documents and evidence.

Step 6: Submit Required Documents

Submit all the necessary documents to support your claim. This typically includes the filled claim form, a copy of the FIR, policy documents, vehicle registration details, driving licence, and any other documents requested by the insurer.

Step 7: Settlement and Payment

TATA AIG will process the claim after completing the survey and verifying the documents. If the claim is approved, the insurer will provide the settlement amount per the policy's terms and conditions. You may need to pay the deductible or depreciation per the policy terms.

Filing a Claim as a Victim (Third Party Liability Claim)

Step 1: Gather Information

Collect all necessary information about the accident, including the involved parties and witnesses' date, time, location, and contact details. Take photographs of the accident scene, vehicle damage, and any injuries sustained.

Step 2: Report the Accident

File a police report and inform the nearest police station about the accident. An FIR is essential for claiming third-party liability insurance.

Step 3: Identify the Insurer

Find out the insurance details of the at-fault car by obtaining the policy number or registration details. Contact us or check our website to identify the insurer and policyholder.

Step 4: Inform TATA AIG

Contact us and provide all relevant information regarding the accident and your claim as a third-party victim. Provide the policy number or registration details of the at-fault car.

Step 5: Claim Survey and Inspection

TATA AIG may appoint a surveyor to inspect the damages to your vehicle and assess the extent of your losses. Cooperate with the surveyor and provide any requested documents and evidence.

Step 6: Submit Required Documents

Submit all necessary documents to support your claim. This may include a copy of the FIR, policy documents, vehicle registration details, driving licence, and any other documents requested by the insurer.

Step 7: Claim Settlement

Once the survey and verification process is complete, TATA AIG will process your claim. If your claim is approved, the insurer will provide the settlement amount per the policy's terms and conditions. The settlement amount will cover the damages to your vehicle and any medical expenses incurred due to injuries.

"I've been using TATA AIG's third-party car insurance for the past two years, and I must say, it has been a hassle-free experience. Recently, I had an unfortunate accident where my car collided with another vehicle. Thanks to TATA AIG, the claim process was smooth and efficient. They handled everything promptly, from filing the claim to settling it without hassle. I highly recommend TATA AIG for their excellent customer service and reliable third-party car insurance coverage."

Rajesh Kumar, Delhi.

"I was sceptical about buying third-party car insurance initially, but after researching various insurers, I chose TATA AIG, which was the right decision. Last month, my car accidentally damaged someone's property, and I was worried about the costs involved. TATA AIG came to the rescue! Their team guided me through the claim process and ensured a quick settlement. I appreciate their professionalism and commitment to customer satisfaction. I feel more secure on the road knowing I have TATA AIG's third-party car insurance."

Sneha Patel, Mumbai.

"TATA AIG's third-party car insurance has been a reliable and cost-effective choice for me. I recently had a minor accident where I damaged another car's bumper. Despite being a small claim, TATA AIG treated it with utmost importance and settled it efficiently. Their online platform made the claim process incredibly convenient, and I received the settlement amount within days. TATA AIG's third-party car insurance is the best value for money, and I will definitely continue using their services."

Ravi Verma, Bangalore.