Third-Party Motor Insurance
The Cover The Law Requires, Explained Clearly
Third-party motor insurance covers your legal liability when your vehicle causes death, injury or property damage to someone else. Under the Motor Vehicles Act 1988, every vehicle used in a public place must carry it. It is the minimum cover allowed, and it does not pay for damage to your own vehicle. MILES helps you buy the right third-party cover, understand what it does and does not do, and decide whether own-damage protection is also worth adding.
What Third-Party Cover Protects
Injury Or Death To Others
Pays compensation awarded for death or bodily injury to third parties caused by your vehicle, as the law requires.
Damage To Others' Property
Covers damage your vehicle causes to other people's vehicles, buildings or property, up to the limit in the policy.
Legal Defence
The insurer defends claims against you, including cases before the Motor Accident Claims Tribunal, within the policy terms.
Meets The Legal Requirement
Keeps you compliant with the Motor Vehicles Act 1988, avoiding penalties for driving an uninsured vehicle.
Premium Set By IRDAI
Third-party premiums are notified by IRDAI for each vehicle class, so the base price is the same across insurers.
Long-Term Cover Options
New cars carry three-year and new two-wheelers five-year third-party cover, reducing the chance of a lapse.
What is third-party motor insurance?
Third-party motor insurance is a policy that pays for your legal liability to other people when your vehicle causes their death, bodily injury or damage to their property. It is compulsory for every motor vehicle used in a public place in India under the Motor Vehicles Act 1988.
The “third party” is anyone other than you (the first party) and the insurer (the second party). The policy protects them, and it protects you from having to pay large compensation awards from your own pocket. What it does not do is pay for repairs to your own vehicle or replace it if stolen.
What is covered
- Death or bodily injury to any third party, including pedestrians, cyclists, occupants of other vehicles and, for passenger vehicles, passengers as the law requires.
- Damage to third-party property, such as another car, a shop front, a wall or a streetlight, up to the property damage limit in the policy.
- Legal costs of defending claims, as provided in the policy.
- Compulsory owner-driver personal accident cover, which is attached to the motor policy unless the owner qualifies for an exemption.
Liability for death and bodily injury is generally not capped by the policy, because compensation is decided by the Motor Accident Claims Tribunal based on the facts of the case. Property damage cover has a set limit, which differs by vehicle class; check your policy schedule for the figure that applies.
What is not covered
- Damage to or theft of your own vehicle.
- Injury to the owner-driver beyond the personal accident cover.
- Claims arising when the driver has no valid licence or is driving under the influence, where the insurer may pay the victim and then seek recovery from the owner.
- Use of the vehicle outside its registered purpose, such as a private car used as a taxi.
- Contractual liability that you have taken on beyond what the law imposes.
Long-term third-party cover for new vehicles
New private cars are sold with third-party cover for three years and new two-wheelers with five years. This was introduced to reduce the large number of uninsured vehicles on Indian roads. Many owners buy own-damage cover for one year at the time of purchase and then renew only the own-damage part each year. That is where private car insurance and two-wheeler insurance as standalone own-damage policies come in. When the long-term third-party term ends, it must be renewed without a break.
How the premium is decided
Third-party premiums are not set by the insurer. They are notified by IRDAI for each class of vehicle, based on factors such as engine capacity for cars and two-wheelers, gross vehicle weight for goods carriers and seating capacity for passenger vehicles. So, for the same vehicle, the third-party portion will cost the same whichever insurer you choose. Differences between insurers show up in own-damage premiums, add-ons and service.
Third-party only or comprehensive?
| Point | Third-party only | Comprehensive |
|---|---|---|
| Legal requirement met | Yes | Yes |
| Damage to others | Covered | Covered |
| Damage to your vehicle | Not covered | Covered |
| Theft of your vehicle | Not covered | Covered |
| Add-ons available | Very limited | Wide choice |
Third-party only can make sense for an old vehicle of low value. For most cars and newer bikes, the extra premium for own-damage cover is small compared with the cost of an uninsured repair or theft.
How MILES helps
- Check your status: we confirm when your third-party and own-damage covers each expire, so nothing lapses.
- Compare full options: while the third-party price is fixed, we compare own-damage terms and add-ons across insurers.
- Explain the limits in your schedule, including the property damage limit and personal accident terms.
- Support third-party claims: we help you report the accident, file documents and work with the insurer’s legal team. Visit our claims page for details.
How a claim works
- Stop, help anyone injured and inform the police. Note the other vehicle’s details and any witnesses.
- Inform your insurer and MILES as soon as possible, even if no claim has yet been made against you.
- Pass on any notice, summons or letter you receive from the other party or the tribunal to the insurer without replying to it yourself.
- Provide the RC, driving licence, policy copy and FIR. Do not agree to settle or admit liability without the insurer’s consent.
- The insurer handles the case and pays the compensation awarded, within the policy terms.
See all our motor insurance options for cars, bikes and commercial vehicles.
Cover, exclusions and premiums depend on the insurer’s policy wording and underwriting. MILES Insurance Brokers Pvt. Ltd. is an IRDAI-licensed direct broker (Life & General, Reg. No. 954); the insurance is issued by the insurer. Insurance is the subject matter of solicitation.