Third Party Car Insurance Online: Benefits And Features

If you are a car owner, you need to protect yourself and your car by having insurance against damage and accidents. It is also made mandatory by the Motor Vehicles Act to have at least third party car insurance for all drivers/owners. 

Third Party Car Insurance

This insurance policy offers a basic level of protection and is made a minimum requirement by law. It is also referred to as liability-only plan or act-only policy. Under this insurance plan, the policyholder is protected from the legal and financial liabilities to a third party in case of injury, death, or property damage caused to the third party. Third party insurance cover is the cheapest and most cost-efficient form of car insurance available in the market. 

The insured car or the insured person, i.e. the owner of the car is not covered under this policy. It does not offer any personal accident coverage to the owner. The third party liability plan is considered to be the most optimum plan for someone who does not use his/her car too often or has an old car. In either of the cases, it is the most suitable plan as it offers the minimum level of protection. 

Key Benefits of Third Party Car Insurance


  • Legal cover and Financial assistance- This cover takes off legal and financial burden off the head of the policyholder. The direct beneficiary is the third party, and neither the insurer nor the insured.
  • Provides Peace of Mind- In taxing situations like accidents, having a liability-only plan can provide peace of mind and calmness to the insured. 
  • Quick and Easy Availability- This policy can be easily bought either by visiting their office or through online website. The renewal process is also quite simple.
  • Cost-effective- The premiums in third party insurance plan are low and thus can be afforded by all. 

Raising a third party liability car insurance claim consists of three main parts:

  1. Informing the police and filing an FIR. The charge sheet should also be procured from the police station.
  2. Filing a case at the Motor Accident Claims Tribunal (MACT). This can be done with the assistance of a lawyer. The case should be filed in the court that is closest to the place of the accident or the residence of the injured.
  3. Settling the claim in court and coming to a decision on the liability.

The third party liability car insurance policy premiums and claim settlement vary from company to company and policy to policy. It also depends on the make/model/age of the vehicle. It is a policy that saves the policyholder from the hassles of any unforeseen circumstances. 

The third party insurance policy offered by companies like Bharti AXA provides best coverage and claim settlement.


James Harrison: James, a supply chain expert, shares industry trends, logistics solutions, and best practices in his insightful blog.