Difference between Third Party Insurance and Comprehensive Insurance

What is the difference between Third Party Insurance and Comprehensive Insurance?


Third party cover in a Car Insurance policy is a mandatory inclusion by law. This protects the vehicle owner from legal liabilities as a result of accidental damages that have caused permanent injury or death of a third party.

A third-party motor insurance policy is basically signed between two parties, the insured and the insurer. So, third party refers to the people who are neither the insured nor the insurer. They can be occupants of a different vehicle, co-passengers of another car, pedestrians, etc. Third-Party Insurance includes liability for bodily injuries or death of the third party in an event of an accident. However, you must remember the fact that this insurance policy will not offer coverage for any injury to you, death or damage to your own vehicle. It also does not offer coverage for your co-passengers. So, even though only third party cover is mandatory for your car, if you are looking for an insurance cover that will protect you, your loved ones in the car and your vehicle too, then you must go for Comprehensive Insurance.

Things that are not covered under Car Insurance

§ General wear and tear caused due to the ageing of your car
§ Electrical or mechanical breakdown
§ Damage caused by a person or to a person driving a vehicle with no valid licence
§ Damage caused by a person or to a person driving under the influence of liquor or drugs
§ Damage or loss caused due to nuclear risk, mutiny or war
§ Claims that arise out of any contractual liability

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BB Expert