Third-Party Insurance – Motor Vehicles Act

Under Section 146 of the Motor Vehicles Act, 1988 (amended)

Third-party insurance is compulsory for all vehicles in India—cars, bikes, scooters, trucks, buses, autos, etc. No one can legally drive a vehicle on public roads without it.

This rule exists to protect innocent accident victims by ensuring they receive compensation without waiting years in court.

Key Features of Third-Party Insurance

• Mandatory for every registered vehicle (private & commercial).
• Covers injury, death, or property damage caused to another person.
• Does not cover damage to the owner's vehicle.
• Penalty for driving without it → First offence - ₹2,000 fine or up to 3 months jail, subsequent offence -  ₹4,000 or up to three months jail
• Premium rates are fixed by IRDAI (uniform across India).
• New vehicles: Must buy long-term third-party insurance (3 years for bikes, 5 years for cars).

Where to Get Third-Party Insurance Quickly

Online (Fastest Option)

• Insurance company websites (SBI General, LIC, ICICI Lombard, HDFC Ergo, Bajaj Allianz, etc.).
• Insurance aggregator platforms (Policybazaar, Coverfox, Digit, Acko, etc.).
• VAHAN Portal (https://vahan.parivahan.gov.in/) – check status & link with RTO.

 Time taken: 5–10 minutes (digital policy issued instantly by email/SMS).

Offline

• RTO counters (insurance helpdesks at most RTOs).
• Authorized insurance agents.
• Bank or insurance company branches.

 Time taken: 1–2 hours (depends on queue).

 Documents Required

• Vehicle Registration Certificate (RC)
• ID Proof (Aadhaar, PAN, Voter ID, DL)
• Old insurance copy (for renewal)
• Passport-size photo (sometimes)

 State-wise: Where to Buy/Check Third-Party Insurance

 In simple words: Every state allows both offline (RTO/agent) and online purchases.

 FAQs on Third-Party Insurance

1. What is third-party insurance?

Insurance that covers liability for injury, death, or property damage to others caused by your vehicle.

2. Is it compulsory in India?

Yes. All registered vehicles must have at least third-party insurance.

3. What if I drive without it?

First offence - ₹2,000 fine or up to 3 months jail, subsequent offence -  ₹4,000 or up to three months jail

4. Does it cover my vehicle's damage?

No. It only covers others' losses, not your car/bike.

5. Can I buy a new car without insurance?

No. A new vehicle cannot be delivered without a valid third-party policy.

6. What is the validity?

• 1 year (old vehicles).
• 3 years (new bikes).
• 5 years (new cars).

7. Who decides the premium?

The IRDAI. Rates are same across India.

8. Where can I buy it fast?

Online (insurance websites, VAHAN, aggregators) → instant policy.

9. What documents do I need?

RC, ID proof, old policy copy (if renewal), photo (sometimes).

10. Can it be bought online instantly?

Yes, within 5–10 minutes, the e-policy is emailed.

11. What if my friend drives my car and causes an accident?

The owner is liable, but the insurer pays if policy is valid.

12. Can insurers deny giving me third-party cover?

No. By law, they must provide it if papers are correct.

13. How to check my insurance status?

On VAHAN portal or insurer's website/app.

14. Do I need it if my vehicle is rarely used?

Yes. All registered vehicles must have insurance.

15. How does it protect me legally?

It saves you from paying heavy compensation personally and gives legal cover.