Third Party Car Insurance Definition:
Third-party Car Insurance includes accidents caused to another person, property, vehicle, etc. due to your car. Availing Third-party Car Insurance is mandatory as per The Motor Vehicles Act, 1988.
Third Party Car Insurance Description:
Since the third-party insurance cover is necessary, all non-life insurance companies have a responsibility to give this cover.
In the Indian context, automobile dealers provide for a full insurance cover along with vehicle registration.
This comprehensive cover is an add-on to the mandatory third-party cover and protects the car owner from economic losses, caused by accident or theft of the vehicle.
Third Party Car Insurance Premium Calculator
The IRDAI (Insurance Regulatory and Development Authority) decides the premiums for the third party car insurance. Insurance Regulatory and Development Authority has standardized the third party car insurance rates for third party liability insurance with effect from 1st April 2017 as below:
|DESCRIPTION OF VEHICLE||REVISED PREMIUM FOR FY 17-18 (RS.)|
|Not exceeding 1000cc||2,055|
|Exceeding 1000cc but not exceeding 1500cc||2,863|
It works out the premium rates based on the engine capacity of the car, the premium for personal accident owner-driver cover and the goods and service tax which is 18%.
Third Party Car Insurance Premium Calculator Example:
Third Party Car Insurance or Liability Cover
- Comes with Low premiums
- Allows for third-party claims under no-fault liability
- Covers bodily injury and accidental death caused by the policyholder
- Also covers property damage caused by the policyholder