Purchasing a Third-Party Car Insurance Policy is essential, as it is legally required under The Motor Vehicles Act of 1988. Driving without this coverage is against the law and can result in penalties. This type of insurance protects you from financial and legal responsibilities in case of damage to someone else’s property or injuries to a third party. Therefore, having a third-party car insurance plan is crucial for compliance and financial security.
Coverage Under a Basic Third-Party Car Insurance Policy
Third-Party Vehicle Damage – If your car collides with another person’s vehicle, such as a bike or another car, the policy will cover the repair costs in accordance with the terms and conditions.
Injury to a Third Party – If your vehicle unintentionally injures someone, such as a pedestrian on the road, the policy will cover medical expenses for their treatment.
Third-Party Death – In the unfortunate event that an accident involving your car results in a person’s death, compensation will be provided to the deceased’s family as per policy terms.
Damage to Third-Party Property – If your vehicle causes damage to another person’s property, such as a shop or house, the policy will cover the financial losses incurred, up to ₹7.5 lakhs.
How to Find the Most Affordable Third-Party Insurance?
Unlike comprehensive insurance plans, third-party insurance rates are standardized and do not vary between insurers. The Insurance Regulatory and Development Authority of India (IRDAI) sets these rates, and all insurance providers must comply. While IRDAI may revise the rates annually, all insurers offer third-party car insurance at the same premium cost. Therefore, there is no option to find a cheaper third-party insurance policy, as the pricing remains uniform across providers.
Regardless of whether you own a personal vehicle for daily commuting or a commercial vehicle for business use, third-party insurance is a mandatory requirement. Although the core coverage remains consistent for both private and commercial vehicles, there may be slight differences in terms of coverage, premium rates, and policy terms. Additionally, the process for purchasing a third-party insurance policy for commercial vehicles may differ from that of private vehicles, particularly when buying online.
How to Buy or Renew Third-Party Insurance Online from ACKO
Follow these steps to purchase or renew a third-party car insurance policy online through ACKO:
- Visit ACKO’s website or download the mobile app.
- Enter your car’s registration number and click on the “Check Prices” button.
- Verify your vehicle details and provide information about your previous policy, if applicable.
- Enter your mobile number and PIN code, then click on “View Plans.”
- Choose the third-party insurance plan and complete the payment to finalize your purchase or renewal.
Note: If you are an existing ACKO customer, you can log into your account and renew your policy by selecting your policy card.
How to File a Third-Party Insurance Claim
The process of settling a third-party insurance claim is more complex compared to a comprehensive policy, as it involves legal proceedings. While the specific steps may vary based on the nature of the claim, the general process includes:
- Report the Incident – Notify the insurance provider (ACKO) and file a First Information Report (FIR) with the police. Usually, the affected third party is responsible for filing the FIR.
- Case Registration and Tribunal Hearing – The case is presented before the Motor Accident Claims Tribunal, where evidence and witness statements are examined.
- Tribunal Decision and Settlement – The Tribunal delivers its verdict, determining the compensation amount, which is then settled by the insurance provider.
