If you own a vehicle in India, you’re legally required to have at least third-party motor insurance. This basic policy covers damage or injury caused to another person, their vehicle, or property.
But here’s the catch — it doesn’t cover damage to your own car or bike. In 2025, with road accidents, unpredictable weather events, and rising repair costs, relying only on third-party insurance can leave you financially exposed.
What Third-Party Insurance Covers vs. What It Doesn’t
| Aspect | Third-Party Cover | Not Covered |
|---|---|---|
| Liability for Injury/Death | ✔ Fully covered as per Motor Vehicles Act | ❌ None |
| Damage to Others’ Property | ✔ Up to ₹7.5 lakh | ❌ None |
| Damage to Own Vehicle | ❌ Not covered | ✔ Accidents, fire, natural disasters |
| Theft of Vehicle | ❌ Not covered | ✔ Covered under comprehensive |
| Add-Ons | ❌ None | ✔ Zero depreciation, roadside assistance, engine protection |
Why Third-Party Alone Isn’t Enough
- No Own Damage Cover: Repairs after an accident can cost lakhs.
- No Theft Protection: Vehicle theft rates in metros are rising.
- No Natural Disaster Cover: Floods, cyclones, or landslides aren’t covered.
- No Add-On Flexibility: You can’t get zero depreciation or engine protection without comprehensive cover.
Best Approach in 2025
- Opt for Comprehensive Policy: Includes third-party + own damage cover.
- Add Useful Riders: Zero depreciation, roadside assistance, return-to-invoice.
- Review IDV (Insured Declared Value): Higher IDV means higher payout in total loss/theft.
Case Example
Ritu had only third-party insurance for her hatchback. When a tree branch fell during a storm, repairs cost ₹85,000 — all from her pocket. A comprehensive plan with natural disaster cover would have cost just ₹2,500 extra annually.
Why It Matters
Third-party insurance keeps you legally compliant, but comprehensive cover keeps you financially secure. The small extra premium can save you lakhs in case of damage or theft.
Don’t just insure for the law — insure for your peace of mind. Share this eBharat.com guide so more vehicle owners understand the real value of comprehensive cover.
Internal Links:
- Property Insurance in India – What Gets Covered, What Doesn’t
- Insurance for Mobile Phones – Scam or Safety?
- Personal Accident Insurance – Should You Get One?
