Third Party Car Insurance Price List 2026 in India

Third party car insurance is the minimum cover every car owner in India is required to buy under the Motor Vehicles Act, 1988. The premium for this cover is fixed by the Insurance Regulatory and Development Authority of India (IRDAI), which means the basic price stays the same across all general insurance companies, including Zurich Kotak General Insurance.

This page lists the latest IRDAI third party car insurance rates for private cars and electric cars, along with the proposed discounts, what the policy actually covers, and how the premium is calculated for your specific vehicle.

What is Third Party Car Insurance?

Third party car insurance, also called a liability only policy, is a motor insurance plan that protects you against legal and financial liabilities if your car causes injury, death, or property damage to another person. The "third party" refers to anyone other than you (the first party) and the insurer (the second party).

In simple terms, if your car hits another vehicle, person, or property, the insurer pays for the damages on your behalf, up to the limits set by law. This cover is mandatory for every car driven on Indian roads, irrespective of how old or new the vehicle is.

Why is Third Party Insurance Mandatory in India?

Section 146 of the Motor Vehicles Act, 1988 makes it illegal to drive a motor vehicle in a public place without a valid third party insurance policy. Driving without it can attract:

• A fine of Rs. 2,000 and/or imprisonment up to 3 months for the first offence.

• A fine of Rs. 4,000 and/or imprisonment up to 3 months for repeat offences.

• Suspension of the driving licence and impounding of the vehicle.

More importantly, without third party cover, you would have to personally pay the entire compensation awarded by the Motor Accident Claims Tribunal (MACT) if your vehicle injures or kills someone, which can run into several lakhs of rupees.

Third Party Car Insurance Premium Rates for Private Cars

The IRDAI revises base third party premium rates from time to time based on inputs from the Ministry of Road Transport and Highways (MoRTH). The current notified rates for private cars are based on engine cubic capacity (cc).

Annual Third Party Premium for Private Cars (Petrol/Diesel)

Note: Rates are indicative basic premium amounts as notified by IRDAI and are subject to revision. The premium payable on your policy will also include 18% GST and any add-on covers chosen.

Three Year Single Premium for New Private Cars

From September 2018, IRDAI made it compulsory for buyers of new private cars to take a long term third party cover for three years at the time of purchase. This protects buyers from the hassle of yearly renewal and from any coverage gap.

Third Party Premium Rates for Private Electric Cars

Electric car premiums are calculated on the basis of motor power output measured in kilowatts (kW), not engine cc. EV owners also enjoy a discount as part of the government's push for cleaner mobility.

Annual Premium for Private Electric Cars

Three Year Single Premium for New Private Electric Cars

Tip: An electric car in the same usage band as a petrol or diesel car will always have a lower third party premium because of the IRDAI approved discount for EVs.

Proposed Discounts on Third Party Car Insurance Premium

In a press release dated 20 June 2023, the Ministry of Road Transport and Highways (MoRTH) put out a draft for public consultation. The proposed discounts on the basic third party premium were:

• A 15% discount for buses owned by educational institutions.

• A 50% discount for any private car registered as a vintage car under the CMV Rules.

• A 15% discount for electric vehicles and 7.5% for hybrid electric vehicles.

• A reduction of around 6.5% in the basic premium for three wheeler passenger carrying vehicles.

Buyers should note that these are draft proposals and the final notification by IRDAI may differ. For the most current applicable rate, always check the latest IRDAI motor third party premium notification or speak to the insurer at the time of purchase.

What is Covered Under Third Party Car Insurance?

A standard third party car insurance policy covers the following heads of liability when an accident occurs because of your insured car:

• Death or bodily injury caused to a third party. Compensation is decided by the MACT and is unlimited.

• Damage to a third party's vehicle, property, or any other object, up to a maximum of Rs. 7.5 lakh.

• Legal costs and expenses incurred in defending claims, with the insurer's prior consent.

• Compulsory personal accident cover for the owner driver of Rs. 15 lakh, when bought as a separate Owner Driver PA policy.

What is Not Covered Under Third Party Car Insurance?

This is the most important section to understand before you buy a liability only policy. Third party insurance does not pay for:

• Damage to your own car from an accident, fire, theft, flood, or any natural calamity.

• Damage caused while driving under the influence of alcohol or drugs.

• Damage when the driver does not have a valid driving licence.

• Damage caused while using the car for a purpose other than what is allowed in the policy, for example using a private car as a taxi.

• Damage outside India unless extended specifically.

If you also want cover for your own car, you should look at a comprehensive car insurance policy or a standalone own damage policy along with this third party cover.

How is Your Third Party Car Insurance Premium Calculated?

Unlike own damage premium which depends on car make, model, age, IDV, and add-ons, the third party premium depends only on three factors:

• Engine cubic capacity (cc) for petrol, diesel, and CNG cars, or motor power in kW for electric cars.

• Whether the policy is annual or a long term three year policy for a new car.

• Any IRDAI approved discounts applicable to your vehicle, such as the EV or vintage car discount.

Because IRDAI fixes this rate, you cannot bargain on the third party portion of your premium. What you can compare across insurers is the own damage premium, the claim settlement experience, and the network of cashless garages.

Why Buy Third Party Car Insurance from Zurich Kotak General Insurance?

• Quick online policy issuance with instant policy document on email.

• A wide network of cashless garages across India for related own damage claims.

• 24x7 customer support on toll free 1800-2120 and WhatsApp at 7998879988.

• Easy claim intimation through the website, mobile, or branch.

Backed by the trust of Kotak Mahindra Bank and Zurich Insurance Group.

Get a Zurich Kotak Comprehensive Car Insurance quote now.

Frequently Asked Questions

Q1. What is the price of third party car insurance for a private car in 2026?

For a petrol or diesel private car not exceeding 1000 cc, the basic annual third party premium is Rs. 2,094. For cars between 1000 cc and 1500 cc the rate is Rs. 3,416, and for cars above 1500 cc it is Rs. 7,897. These rates are exclusive of 18% GST and are notified by IRDAI.

Q2. Is third party insurance enough for my car?

Third party insurance only covers liability you owe to others. It does not pay for damage to your own car. If your car is new, expensive, or financed, you should buy a comprehensive policy that includes both own damage and third party cover.

Q3. How much can I claim for third party property damage?

The maximum compensation for third party property damage under a basic IRDAI third party policy is Rs. 7.5 lakh. For death or bodily injury to a third party, the compensation is decided by the Motor Accidents Claims Tribunal and has no upper limit.

Q4. Are electric cars cheaper to insure on third party basis?

Yes. The IRDAI has approved a 15% discount on the basic third party premium for private electric cars. So an EV in the same usage band will pay a lower third party premium than a petrol or diesel car.

Q5. Can I buy only a third party car insurance policy online?

Yes. You can buy a standalone third party car insurance policy online from Zurich Kotak General Insurance in minutes. You only need your car registration number, RC details, and an email ID.

Q6. Is the three year third party policy compulsory for new cars?

Yes. As per the Supreme Court directive of 2018 and the IRDAI circular that followed, every new private car bought from 1 September 2018 must come with a three year third party cover at the time of registration.

Q7. What documents are needed to claim under third party insurance?

To file a third party claim you typically need the policy copy, RC of the vehicle, driving licence of the driver, FIR copy, and the claim form. The MACT will guide you through the rest of the legal process.

Q8. Does third party premium change every year?

The IRDAI revises base third party premium rates from time to time, but the rate stays the same across all insurers in any given year. The amount you actually pay can change based on your engine capacity slab and any approved discounts.

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