Third-Party Insurance policy, Is it worth it?
If a car is insured the financial losses caused are supposed to be covered by the insurance firm. In this article we will be talking about Third party car insurance policy and is it worth it.
There are two type of insurance policy offered by the insurance types in India-
- Third Party
- Comprehensive
Before we talk about third party insurance let's be clear of some terms-
- First Party- The person who has purchased an insurance policy.
- Second Party- The firm that provides the insurance policy.
- Third Party- Anyone who is affected by the insured car.
Well, as you must have already figured out, the third-party insurance covers against the damages occurred to a person by an insured car. The list of things covered by the third-party insurance policy is as follows-
- Damages to third-party vehicle
- Injury caused to third-party
- Damages to third-party property
- Injury to first-party
For example, Let's say driver A was speeding his car and hit a car (driver B) that was moving ahead of him. Now, driver B lost control of his car and crashed into the divider. This led to damages to both the cars and injury to both the driver.
Now, driver A has a third-party insurance. So, the insurance will cover the damages to the vehicle of driver B and the injuries to both the driver. The damage to the vehicle of driver a will not be covered by the third-party insurance policy.
Now you know what is a third-party insurance, so let's compare it with Comprehensive cover and you figure out yourself which one is the best for your personal use.
|
THIRD-PARTY |
COMPREHENSIVE |
|
|
Coverage |
Covers the damages caused to an individual or their property due to the insured car. |
In addition to third-party coverages- damage from man-made or natural calamities, theft, fire, etc. are covered for your vehicle. |
|
Is It Enough? |
No, as the insured car is excluded from personal coverages. |
Yes, as this is a comprehensive policy and is customizable. |
|
Premium |
This is priced lower due to less coverage. |
The cost of comprehensive policy is higher due to more coverage. |
|
Rates |
The cost fixed by the Insurance Regulatory and Development Authority of India (IRDAI) based on the cubic capacity of car's engine. |
The cost is fixed by the insurance firm as per the terms & conditions of the comprehensive policy. |
Before you make up your mind, take a look at what these policies do not cover.
Third-Party Exclusions-
- Does not cover the cost of damages to the insured vehicle
- The belongings in the vehicle in case of an accident.
- No cover if traffic rules are broken.
- Personal accident
- No cover if terms and conditions of the policy is violated
Comprehensive Exclusions –
- Aging of the vehicle
- Depreciation
- Breakdown
- Damaged tyres and tubes.
- Damage caused by someone driving without any accepted licence.
- Damage caused due to drunken driving or under influence of drugs.
- Damage caused by war.
So, this is all you need to know about third-party insurance to figure out if it works for you or not.
Latest News
car&bike Team | May 15, 2026Norton Manx R's Made-in-India V4 Engine: All You Need To KnowThe 1,200cc, 72-degree V4 engine of the Norton Manx R is perhaps the most sophisticated and powerful motorcycle engine built in India.1 min read
car&bike Team | May 15, 2026Norton Atlas To Be Fully Built In India Before LaunchThe Norton Atlas and Atlas GT will be the mid-size adventure touring models, which will be the first Norton models to be completely manufactured in India.1 min read
Hansaj Kukreti | May 15, 2026King's New Ride: Shah Rukh Khan Adds Rs 5 Crore American SUV Cadillac Escalade To His GarageBollywood star Shah Rukh Khan was recently spotted on the streets of Mumbai being driven around in a luxurious full-size SUV, and videos of the car have gone viral across social media.1 min read
car&bike Team | May 15, 2026Defender Leads JLR Volumes In India As Overall Sales Decline In FY26The brand has recorded a 14 per cent revenue growth, with the Range Rover, Range Rover Sport and Defender being the most popular models1 min read
Jaiveer Mehra | May 15, 2026Tata Sierra EV Launch Confirmed For July-September Quarter; 2 New Nameplates Coming In 2026The launches in 2026 are expected to include the Punch & Punch EV facelifts with the Sierra EV and the Avinya EV expected to be the all-new nameplates.3 mins read
car&bike Team | May 15, 2026Norton Manx R India Launch ConfirmedThe Norton Manx R, the brand’s flagship V4 engine superbike, will be launched in India, very soon, according to TVS Motor Company.3 mins read
Preetam Bora | May 11, 20262026 Suzuki Burgman Street 125 Review: What’s Good, What’s Not?The new Suzuki Burgman Street 125 gets refreshed design, minor but meaningful tweaks to the engine, a stiffened chassis, new features and more. But is it worth recommending? Read on, to find out.8 mins read
Bilal Firfiray | May 11, 2026Audi SQ8 Review: The Performance SUV That Actually Makes SenseThe Audi SQ8 has the performance of a V8 seamlessly combined with the everyday luxury and comfort, making it one of the most complete performance SUVs on sale in India today.5 mins read
Jafar Rizvi | May 3, 2026River Indie Gen 3 Long Term Report: 1 Month, 400 km AfterAfter a month and 400 km, the River Indie impresses with its utility-first approach, smooth ride and standout design, despite a few everyday usability compromises.8 mins read
Bilal Firfiray | May 2, 2026Volkswagen Taigun Facelift Review: Still The Driver’s SUV, But Improved!The updated Volkswagen Taigun gets a new 8-speed automatic, a refreshed design, and added features. But does it still deliver the best driving experience in the C-SUV segment?5 mins read
Shams Raza Naqvi | Apr 29, 2026Toyota Innova Hycross Vs Mahindra XEV 9S: Choosing The Right Three Row Family MoverIn a battle of three-row cars the electric Mahindra XEV 9S takes on the Toyota Innova Hycross. Which one ticks more boxes?1 min read