December 6, 2023

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What Is Third-Party Car Insurance?

3 min read
Long Term Comprehensive Car Insurance Policy Online | HDFC ERGO

According to the Motor Vehicle Act, all vehicle owners are required to have third-party insurance, also known as “act-only” insurance. This sort of insurance provides protection from damage to a third party’s vehicle, loss of personal goods, and bodily harm. The insurer is not covered by the insurance in any way. 

What is the procedure for Third-Party Insurance? 

If a policyholder has an accident, the insurer will provide money to cover the expense of fixing the property of the third party. It lessens the policyholder’s financial burden as a result. Before submitting a claim in the event of an accident, the insured must notify the insurance provider right away. 

Third-Party Insurance: Its Value 

  • The statute makes third-party insurance compulsory. So, obtaining third-party coverage enables the policyholder to adhere to the law. 
  • While being a basic option for coverage, it provides policyholders with the security of knowing that they have adequate financial protection against the harm they might cause to others in an accident. 
  • The policyholder’s financial assets are protected from unintentional hazards by third-party car insurance online.  

The policyholder is responsible for covering any losses or injuries sustained in the event of an accident with a third party. When an accident occurs, the policyholder must notify the insurance provider as soon as possible and make them aware of the circumstances. 

Also, it is crucial to compile information on the accident and give the insurance the following specifics: 

  • An accident’s description, along with the time and date. 
  • Information about insurance policies and those present at the scene of the accident. 
  • Specify any injuries the driver, passengers, or any damaged property or vehicles have suffered. 
  • Witness information. 
  • At the time of the accident, the weather and visibility
  • Photographs of the accident scene’s evidence collection. 

The characteristics of third-party insurance 

  • All policyholders are provided with a fundamental degree of protection through third-party car insurance online
  • Also, it is known as a liability-only or act-only policy. 
  • It gives a defence against any legal responsibility to a third party brought on by the policyholder’s involvement in the collision. It provides compensation for third-party property damage, passing away, and physical harm. 
  • The fact that this form of coverage offers a reasonable premium is a key characteristic. 
  • The insured vehicle is not protected by third-party insurance. 

The method for filing a third-party insurance claim 

The policyholder must follow the claim guidelines in order to receive compensation from the insurance provider. The following steps are included, which show the process of how to claim car insurance

  • The insurance policyholder must first and foremost notify the insurance provider of the accident within the time frame specified in the policy document. 
  • The policyholder must report the accident to the police as soon as possible and obtain a copy of the report. 
  • Fill out the form and provide the required documentation to file a claim with the lender. 
  • The insurance will send a surveyor to evaluate the damage and confirm the estimated cost after receiving the claim paperwork. After evaluation, the surveyor submits a report. 
  • The insurer resolves the claim in light of the report. 

Third-party Insurance Plan Inclusions: Inclusion / Exclusion 


Let u understand what is covered in car insurance. Protection from third-party injuries or property damage is provided by third-party car insurance. It includes passing away, property damage, vehicle damage, and bodily injury. 


  • Unless otherwise specified, third-party insurance does not pay benefits if 
  • Drunk driving was a factor in the disaster. 
  • The driver is underage or was convicted of operating a vehicle without a legal licence. 
  • The incident was intentionally caused. 
  • Any unlawful or commercial uses for the vehicle are prohibited. 
  • The automobile is stolen

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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