Let us call you back. Just share your number for a call back in less than 15 minutes

We can’t proceed without your mobile number. Help us?
Sigh. We need the reason for call back to pick the right person for the job. Help us?

Is it super urgent? Call us on our Toll Free numbers

BTW, we respond to email queries with lightening fast speed. Send email instead?


Someone from the team will get back to you ASAP!


Oh! Just in case you still need our Toll free

1800 209 9970
Also schedule a callback Also send an email

Your Claim Assistance request has been registered with us.

We will contact you before 11am tomorrow.

If its an emergency, for immediate assistance please feel free to contact our Customer Support Unit on 1800 209 9970

Limits up to which Third Party Cover is offered in Car Insurance

Buying a car insurance these days is easier. Thanks to online brokers like Coverfox. But then again, how many actually understand its know-hows especially related to Third Party cover which is a legal mandate?

image title

A third party car insurance is a shield against any unforeseen threats that might be inflicted by the vehicle owner to a third person involved in an accident other than the vehicle owner or the insurer. Though it is a mandatory insurance cover to have before running your vehicle on the roads, the Motor Vehicles Act, 1988, also terms all vehicles running without it as illegal and faulty. The insurance helps safeguard the third party in an accident, (the person other than the vehicle owner and the insurer) who might be a part of the accident without his own fault. It settles for him the costs of his injuries and medical expenses, any disability or even death. The third party insurance, which is also known as an “act only” cover, where it is a safeguard of compensation for the person who gets affected in an accident, it also acts in the interest of the vehicle owner by giving him lesser worries at the time of an accident.

Below is an account of third party insurance cover, and the compensations offered in it.

Limits of compensation under varying injuries and claims:

  • Compensation for injuries inflicted by the accident:

    In cases of minor surface or internal injuries inflicted by an accident, the third party compensation makes the person liable to claim for his medical expenses and treatment.

  • Compensation for partial disability caused by the accident:

    It can be a severe case if an accident results to a partial disability or non-functioning of a body part. But with the cover of an active third party insurance, the vehicle owner can save himself from the troubles of the mishap. The compensations include the medical expenses and hospitalization charges that the third person files against the vehicle owner.

  • Compensation for permanent disability caused by the accident:

    In case the accident results to a permanent disability, that is the non-functioning of a body part permanently, say, the loss of limbs, or vision, etc. The act only insurance cover is there to back up the vehicle owner for the losses incurred by the third party. The compensations again include the costs of medical bills and hospitalization charges.

  • Compensation for death caused by the accident:

    If the third party involved in the accident loses his life, there is a serious threat of charges to be faced by the vehicle owner. However, if the vehicle that caused the accident is insured, the threat minimizes to a large extent. The insurance company is liable to pay the compensation of the deceased, if some legal heir files a case against the vehicle owner under the third party act.

  • Compensation for damage to property by accident:

    If the accident results to the damage of any property, apart from physical injuries to anyone, then a compensation for the losses occurred to the property are settled by the third party insurance cover.

The compensations under various acts vary accordingly. The cost of settlement for injuries and, partial disabilities include the medical and hospitalization expenses. While in case of a permanent disability or death the compensation offered is likely to be of a higher value that is decided basis the losses incurred due to the person’s disability or death caused by the accident.

In case of any damage to the property by the accident, the maximum cost of compensation is 7.5 lakhs. Any amount above that, either decided by the court or mutually agreed between the first party and third party, is cleared by the vehicle owner himself. However to claim the compensation from the court of law, the third person needs to file an FIR against the vehicle owner and produce the vehicle owner’s valid insurance papers before the MACT (Motor Accident Claims Tribunal) and follow the final judgment.

Not a single person wants to land in a situation of claiming on his motor insurance however, as uncertainties knock at the door without any warning, it’s always advised to be aware of nitty-gritties of your motor insurance policy. As Third Party cover is a legal mandate, isn’t it in our best interest to know its cover just to be prepared?

Get lowest quotes for Car Insurance

Avail upto 60% discount on Premium.

Please enter a valid phone number
Thanks! We will get back to you soon.

I hereby authorize Coverfox to communicate with me on the given number for my Insurance needs. I am aware that this authorization will override my registry under NDNC.

Meeta Sabnis
Written by Meeta Sabnis
Her mantra in life is to dream, and dream until you turn them into reality. A neurotic Kajol fan, Meeta loves spending time with her gorgeous twins, ensuring a childhood they’ll be proud of. Bargain hunting, crazy dancing and romancing alphabets are some of her other cravings. She’s currently a Content Writer at Coverfox.

Spread the love!