Third-party insurance covers your legal liability towards someone else — the third party — when your vehicle causes injury, death or damage to their property. In India this cover is a legal requirement for any vehicle used in a public place.
What it does and does not do
- It pays compensation to the affected third party, subject to the policy and the law.
- It does not pay for damage to your own vehicle.
- It does not cover theft of your vehicle.
- Cover for your own vehicle requires own-damage cover, usually bought as a comprehensive policy.
Third-party versus comprehensive
A comprehensive motor policy bundles the mandatory third-party liability with own-damage cover, and optional add-ons can be attached to it. A standalone own-damage policy is also available where a valid third-party policy is already in force.
Read our full motor insurance guide for how these pieces fit together at renewal time.