The government has made it mandatory in India for motor vehicles to get a third-party insurance policy. The Motor Vehicles Act of India, 1988, mandates all vehicle owners to take third-party liability insurance. It is known as “Third Party Cover” since it offers financial support to a third party rather than the policy holder.
Third-party insurance is available for both commercial and private vehicles.
How it works
Third-party insurance is a policy that the owner of a vehicle buys from an insurance provider to shield him against third-party claims for any harm done to him or his vehicle as a result of accidents, no matter how minor. However, the policy holder (owner of the vehicle) will not receive financial assistance under this coverage.
Third-party motor insurance premium rates for FY 2023-24
According to the Ministry of Road Transport and Highways in a draft notification dated June 14, stated: “These rules may be called as the Motor Third Party Premium and liability rules for the Financial Year (FY) 2023-24.
(2) They shall come into force with effect from ., 2023.
(3) The base premium rates for Motor Third Party Insurance Cover for unlimited liability for the various
classes of vehicles are tabulated below for the Financial Year 2023-24 and beyond, till the time new rates are notified.”
Here is latest third party insurance rates
Private car third party premium rates
| Vehicle Type | Rates (Rs) |
| Private Cars | |
| Not exceeding 1000 cc | 2,094 |
| Exceeding 1000 cc but not exceeding 1500 cc | 3,416 |
| Exceeding 1500 cc | 7,897 |
Two wheelers third party insurance
| Not exceeding 75 cc | 538 |
| Exceeding 75 cc but not exceeding 150 cc | 714 |
| Exceeding 150 cc but not exceeding 350 cc | 1,366 |
| Exceeding 350 cc | 2,804 |
New Private Car – Three to Five year premium
| Category of Vehicle | Rates (Rs.) |
| New Private Car – Three year single premium | |
| Not exceeding 1000 cc | 6,521 |
| Exceeding 1000 cc but not exceeding 1500 cc | 10,640 |
| Exceeding 1500 cc | 24,596 |
| New Two Wheeler – Five year single premium | |
| Not exceeding 75 cc | 2,901 |
| Exceeding 75 cc but not exceeding 150 cc | 3,851 |
| Exceeding 150 cc but not exceeding 350 cc | 7,365 |
| Exceeding 350 cc | 15,117 |
Rates for Electric vehicles third party premiums
| Vehicle Type | Rates (Rs) |
| Private Cars | |
| Not exceeding 30 KW | 1,780 |
| Exceeding 30 KW but not exceeding 65 KW | 2,904 |
| Exceeding 65 KW | 6,712 |
| Private Two Wheelers | |
| Not exceeding 3 KW | 457 |
| Exceeding 3 KW but not exceeding 7 KW | 607 |
| Exceeding 7 KW but not exceeding 16 KW | 1,161 |
| Exceeding 16 KW | 2,383 |
Long term rates for electric vehicles – private cars and two wheelers
| Category of Vehicle | Rates (Rs.) |
| New Private Car – Three year single premium | |
| Not exceeding 30 KW | 5,543 |
| Exceeding 30 KW but not exceeding 65 KW | 9,044 |
| Exceeding 65 KW | 20,907 |
| New Two Wheeler – Five year single premium | |
| Not exceeding 3 KW | 2,466 |
| Exceeding 3 KW but not exceeding 7 KW | 3,273 |
| Exceeding 7 KW but not exceeding 16 KW | 6,260 |
| Exceeding 16 KW | 12,849 |
