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Third-Party Insurance: What It Really Covers (And Doesn't)
19 Jan
Summary
- Third-party motor insurance covers others, not the policyholder's vehicle.
- Compensation for death/injury is unlimited, but property damage is capped.
- Claims can be denied for driving without a valid license or under influence.
Third-party motor insurance is the fundamental, legally required vehicle cover in India, yet many motorists misunderstand its scope. This insurance is designed to financially protect other individuals on the road. It provides compensation for injuries or death sustained by a third party, and for damage to their property, up to a statutory limit.
The core function of third-party insurance is to shield those *outside* the insured vehicle. It crucially does not extend coverage to the policyholder's own vehicle for repairs, nor does it cover the driver's medical expenses. Situations like theft, fire, or flood damage to the owner's vehicle are also excluded unless separate policies are purchased.
In the event of an accident, the affected third party typically files a police complaint and then approaches the Motor Accident Claims Tribunal (MACT) for compensation. While property damage claims might resolve within months, injury or death claims can often take years. For comprehensive protection, especially for newer vehicles, experts recommend opting for full comprehensive insurance.
