Third Party Insurance

Do I have to do some paperwork to buy Third-party car insurance online?

Usually, there is no need for any paperwork while buying Third-party car insurance from Insurtech companies such as ACKO. 

How do I physically carry my online Third party car insurance policy?

You can take a printout of your online Third-party car insurance policy and carry it in the physical format. You can also download in it a PDF format or store it in DigiLocker for easy access. 

What if there is a mistake in my Third-party car insurance policy document?

If there are any typographical errors or minor errors such as a change in address or contact number, you can get those done quickly via an endorsement process by contacting your insurance company. Major changes such as modifications in the engine can also be done via an endorsement but it can affect the premium.

What happens to my Third party insurance policy if I sell my car?

If you are selling your car, you have two options for your Third party insurance policy. You can either cancel it or transfer it to the new owner. In both cases, you will have to submit the required documents.

Is there a need to file a First Information Report in case of a third-party claim?

Yes, there is a need to file a First Information Report in case of a third-party claim.

Who handles the cases filed for third-party claims?

Third-party claims are handled by a dedicated court known as the Motor Accident Claims Tribunal. 

Is there a limit when it comes to the compensation offered by the insurance company under the third-party property damage clause?

Yes, there is a limit of Rs. 7.5 lakhs concerning the compensation offered by the insurance company under the third-party property damage clause.

Is there a limit when it comes to the compensation offered by the insurance company under the third-party injury/death clause?

There is no limit when it comes to the compensation offered by the insurance company under the third-party injury/death clause.

Is there a time limit before which one has to file a claim?

Ideally, a third-party claim needs to be filed within 60 days of the accident. However, it is recommended to do it at the earliest.

Someone else was driving my car at the time of the third-party accident? Will my insurance company settle the claim?

The Third-party policy is for the vehicle. Therefore, the insurance company can settle the claim provided the person driving the car was driving it legally with a valid driving license.

Will my Third-party policy cover me if I purchase it from one city but the car accident takes place in another city?

Yes, a Third-party car insurance policy offers nationwide coverage. You can purchase the policy from anywhere in India and it shall cover you throughout the country.

– June 10, 2020

The long-term Third-Party Package, which includes Own Damage cover as well for three and five years, has been withdrawn by the IRDAI. This applies for both two and four-wheelers with effect from 1 August 2020. The IRDAI observed that the delivery of long-term Third-Party Liability policies is difficult as it is expensive for both two-wheeler and four-wheeler owners. It added that the possibility of being linked to loans or forced selling was high and that the vehicle owners have no choice but to opt for the long-term product with no options. Additionally, the IRDAI said that the NCB is not the same across insurance companies, which could lead to dissatisfaction and confusion among policyholders. With this notification, customers won’t be given the option of long-term Own Damage plans, only long-term Third-party plans will be offered to customers.

– April 2, 2020

The Insurance Regulatory and Development Authority of India (IRDAI), in an order dated 27 March 2020 has directed that the premium for Third-party vehicle insurance will not be revised for FY 21. In the wake of the rising Coronavirus infections in the country, the government has announced a 21-day lockdown. The order issued by the insurance regulatory states that the premium for the Third-party motor insurance which was set for the year 2019-20 will continue beyond 31 March 2020 till there is further notice. Insurance companies will continue to charge the same third-party vehicle insurance premium from 1 April 2020 to provide some relief to policyholders in the country.

– March 30, 2020

The Insurance Regulatory and Authority of India (IRDAI) has announced that the current third-party insurance premium prices for the year 2019-20 will continue beyond 31 March 2020. The announcement comes amid the ongoing lockdown due to the deadly novel Coronavirus infections. In an order released by the IRDAI, the validity of third-party insurance premium will be increased and remain unchanged beyond the due date of 31 March 2020 until further notice. This effectively means that insurers cannot increase or will continue to offer third-party vehicle insurance at the current rate set by the IRDAI until the regulator revises the premium.

– March 11, 2020

The third-party vehicle insurance for the next financial year 2020-21 is expected to rise by 15%. The revised structure will be effective from 1 April 2020. The increase in premium for the insurance will be across all automobile segments. A proposal of a 2% hike is expected on commercial vehicles, while electric vehicles will witness a hike as well. Long-term third-party vehicle insurance for both two-wheelers and four-wheelers is mandatory as per the directive by the Supreme court. While the long-term insurance policy is 3-years for four-wheelers, it is 5-years for two-wheelers.