Third-Party Motor Insurance Explained Simply

Definition:

Covers injury, death, or damage to someone else's property due to your vehicle.
 It does not cover damage to your own car/bike. 

Key Highlights

• Compulsory for All Vehicles: Cars, bikes, scooters, commercial vehicles—all must be insured before they run on public roads.
• Legal Requirement: Driving without third-party insurance can lead to a ₹2,000 fine or 3 months' imprisonment.
• Premiums Fixed by IRDAI: Prices are regulated yearly based on engine size/type.
• Long-term Cover for New Vehicles:
  • 3 years for two-wheelers
  • 5 years for cars
• Instant Purchase: Available online at registration or directly through insurer portals.
• No Denial: Insurers are bound by law to issue policies.

State-Wise Insurance & Transport Portals

 Use these portals to check vehicle insurance validity, renew policies, or file accident-related claims.

FAQs – Third-Party Insurance in India

1. What is third-party insurance?

It protects you against liability for injury, death, or property damage caused to others by your vehicle.

2. Is it mandatory in India?

Yes. Every vehicle must have valid third-party insurance to be legally driven.

3. Will it cover damage to my own vehicle?

No. It only covers the other party. For your own damage, you need a comprehensive insurance policy.

4. What is the penalty for driving without it?

₹2,000 fine and/or imprisonment for up to 3 months.

5. I just bought a new bike. Do I need this right away?

Yes. New vehicles must have 3 years (bike) or 5 years (car) insurance before hitting the road.

6. Can I buy third-party insurance online?

Yes. Almost all insurers provide it instantly through websites or apps.

7. Who fixes the insurance rates?

The IRDAI (Insurance Regulatory and Development Authority of India) updates rates annually.

8. What if someone hits me and I'm injured?

Their insurer (third-party cover) will pay compensation.

9. My friend drove my car and caused an accident. Am I liable?

Yes. Insurance follows the vehicle, not the driver.

10. Can I drive with only third-party cover?

Yes, but your own vehicle's repair costs won't be covered.

11. What if I forget to renew it?

Driving uninsured is illegal. Renew immediately.

12. Why should I get third-party insurance if it doesn't cover my vehicle?

Because it protects you from massive financial liabilities and is legally mandatory.

13. Does it cover accidents caused by my driver?

Yes, provided the driver has a valid licence and your vehicle has insurance.

14. Can insurers deny giving me third-party cover?

No. They must issue it under law.

15. Can I be fined if my vehicle is uninsured but just parked in public?

Yes. Insurance is mandatory even for parked vehicles on public roads.

16. What documents are required to buy it?

RC, ID proof, and vehicle details.

17. Is it expensive?

No. It's cheaper compared to comprehensive insurance and protects you from paying huge compensation.

18. How do I claim third-party insurance?

Report the accident to your insurer, provide FIR/accident report, and the claim is settled through MACT (Motor Accident Claims Tribunal).

19. What if my policy turns out to be fake?

You may face penalties or jail. Always buy from official portals or registered insurers.

20. Can I upgrade later from third-party to comprehensive insurance?

Yes, you can upgrade anytime by paying the difference in premium.