Car Insurance 905 views April 9, 2021

You need car insurance to stay away from both legal and financial hassles in case of unfortunate incidents involving the four-wheeler. As per the Motor Vehicles Act, 1988, you should have at least third-party car insurance. And if you aren’t aware of the term ‘third party’, you may also not know what the ‘first party’ means in car insurance. Please note that a car insurance policy involves three parties – First Party – who buys the insurance, Second Party – From whom the first party purchases the car insurance, also known as the insurer, and Third-Party – Any person who gets affected by the actions of the first party’s driving. Read this post further to know more about First Party & Third Party Car Insurance.

First Party Car Insurance

Under this type of car insurance, the first party gets an own damage cover where losses or damages caused to the car are due to the following unfortunate events –

  1. Natural disasters (earthquakes, storms, etc.)
  2. Man-made disasters (strike, vandalism, etc.)
  3. Accidents
  4. Fire
  5. Theft

First Party Car Insurance also covers the third party’s liabilities if the insured car causes property damage, bodily injuries or death to the third party during an accident. Besides the above coverage, you’ll also get a personal accident cover in case you suffer an accident while driving the car.

Top Insurance Companies Offering First Party Car Insurance

If you want to purchase first-party car insurance, you can shortlist the insurer from the following

CompanyBenefitsNetwork Garages for Cashless Claims
HDFC ERGO General Insurance
  1. 70% off on policy premium
  2. Overnight repair in case of car damages
  3. AI-enabled motor claim settlement provides same-day settlement
  4. Intimate claim via WhatsApp
  5. Coverage for - Accidents, Fire & Explosion, Theft, Calamities, Personal Accident, Third Party Liability
Tata AIG General Insurance
  1. Up to 13 additional covers
  2. Loss, Theft, Damage and Third-party Liability Cover
  3. Zero Depreciation Cover
  4. Easy claim processing
ICICI Lombard General Insurance
  1. Coverage for damages caused due to natural disasters - earthquakes, floods, fires, storms, etc.
  2. Coverage for theft, accidents and terrorist activities
  3. No claim bonus up to 50%
  4. Personal Accident Cover of INR 15 Lakh
  5. 9 add-on covers available
  6. Third-party legal liability cover
  7. Instant claim settlement through InstaSpect
Bharti AXA General Insurance
  1. Coverage for damages caused to the vehicle due to accidents
  2. Losses due to theft
  3. Losses to the car incurred due to natural disasters
  4. Damages caused to third party vehicle and property
  5. Third-party death cover caused due to the accident by your car
  6. Personal accident coverage
Reliance General Insurance
  1. Cashless repairs at network garages
  2. No Claim Bonus up to 5​​0%
  3. Easy claim process
  4. 98% claims settled in FY - 2019-20
  5. 7 Add-on covers
  6. Own damage cover
  7. Third-party damage cover
Bajaj Allianz General Insurance
  1. Loss due to natural calamities
  2. Loss due to man-made calamities
  3. Personal Accident Cover up to INR 15 Lakh
  4. No Claim Bonus up to 50%
  5. Third-Party Legal Liability Cover
IFFCO Tokio General Insurance
  1. Up to 70% off on Premium
  2. Coverage against natural calamities - flood, storm, lightning, earthquake, landslide, etc.
  3. Coverage against man-made calamities - burglary, theft, accidental external damage, etc.
  4. 24X7 on roadside assistance
  5. Zero Depreciation Cover
  6. Coverage for CNG/LPG fuel kit
  7. Loss or damage cover for electrical or non-electrical accessories
  8. Cashless repairs
  9. 8 Add-on covers
  10. IFFCO Tokio General Insurance app-based claim settlement within 4 hours
  11. 92.65% Claims Settlement ratio
  12. Third-Party Liability cover
New India AssuranceCoverage of loss or damage arising from -
  1. Fire
  2. Explosion
  3. Self-ignition
  4. Lightning
  5. Burglary
  6. Housebreaking/theft
  7. Riot
  8. Strike
  9. Malicious Activity
  10. Terrorist Activity
  11. Earthquake
  12. Fire
  13. Shock
  14. Flood
  15. Typhoon
  16. Hurricane
  17. Storm
  18. Tempest
  19. Inundation
  20. Cyclone
  21. Hailstorm
  22. Accidents
  23. Landslide/Rockslide

You will also get third-party liability cover
4 Add-on covers
United India InsuranceLoss/Damage cover from -
  1. Fire
  2. Self-ignition
  3. Lightning
  4. Burglary
  5. Housebreaking or theft
  6. Terrorist activity
  7. Riot
  8. Strike
  9. Malicious Damage
  10. Earthquake
  11. Flood
  12. Cyclone
  13. Inundation
  14. Landslide or work slide
  15. Third-party bodily injury and or death and property damage cover

Third-Party Car Insurance

Third-party car insurance enables the second party to pay any third-party legal liabilities if the four-wheeler causes injury or property damage to the third party. The compensation amount under this type of car insurance shall be declared by the court.

Top Insurance Companies Offering Third Party Car Insurance

You can purchase a third-party liability car insurance cover from the following insurers, so compare their offers and choose the one that offers you the best deal.

CompanyBenefitsNetwork Garages for Cashless Claims
HDFC Ergo General Insurance Company Limited
  1. Premium starting from INR 2,072
  2. Online approval in less than 3 mins
  3. Zero Documentation
  4. Personal accident cover up to INR 15 Lakhs
  5. Coverage includes - personal accident, third party liability and third party property damage
TATA AIG General Insurance Company LimitedThird-party property damage, bodily injury and death cover5,900+
ICICI Lombard General Insurance Company Limited
  1. Personal Accident Coverage
  2. Access to Cashless Garages
  3. Cover for third party liability
Bharti AXA General Insurance Company Limited
  1. Damages caused to third-party vehicle and property
  2. Third party death cover caused due to the accident by your car
  3. Personal accident coverage
Reliance General Insurance Company LimitedCover for third party property/vehicle5,000+
Bajaj Allianz General Insurance Company LimitedThird-Party Legal Liability cover for damage to property or loss of life of a third-party individual due to an accident involving the insured’s car4,500+
IFFCO Tokio General Insurance Company LimitedCoverage for property damages and injuries caused by your car to a third party4,300+
The New India Assurance Company Limited
  1. Third-party liability cover for bodily injury or death and property damage
  2. Personal Accident cover for owner/driver
United India Insurance Company Limited
  1. Legal liability for death or disability of a third party
  2. Loss or damage to a third party property

People Also Read