Car Insurance

Third-Party vs Comprehensive vs Standalone Own-Damage Car Insurance

By  Updated  3 min read
Third-Party vs Comprehensive vs Standalone Own-Damage Car Insurance
In this guide

Key takeaways

  • Third-party (TP) cover is compulsory under the Motor Vehicles Act; it pays for injury or damage you cause to others.
  • Comprehensive = third-party + own-damage cover for your vehicle (theft, accident, fire, flood).
  • Standalone own-damage (SAOD) covers only your vehicle and works alongside a separate valid TP policy.
  • IDV applies only to own-damage cover.

Insurers sell motor cover in three forms. They differ in what they pay for, what they cost and when you can buy them.

Side-by-side comparison

Feature Third-party only Comprehensive Standalone own-damage
Legally required Yes (minimum) Satisfies the law No — needs a separate TP policy
Death/injury to others Covered (unlimited) Covered Not covered
Damage to others’ property Covered up to policy limit Covered Not covered
Theft of your vehicle No Yes, up to IDV Yes, up to IDV
Accident damage to your vehicle No Yes Yes
Fire, flood, natural calamities No Yes Yes
Add-ons (zero-dep, RTI…) No Yes Yes
No Claim Bonus No On OD part Yes
Premium Fixed by Government TP + OD OD only

Third-party insurance

Driving without at least third-party cover is an offence under the Motor Vehicles Act, 1988; after the 2019 amendments the penalty is up to ₹2,000 and/or three months’ imprisonment for a first offence, and ₹4,000 for a repeat offence. TP cover pays compensation for death or injury to third parties without an upper limit, and for damage to third-party property up to the limit in the policy (commonly ₹7.5 lakh for private cars and ₹1 lakh for two-wheelers).

The premium is notified by the Government in consultation with IRDAI and is identical across insurers:

VehicleAnnual TP premium
Private car up to 1000cc₹2,094
Private car 1001–1500cc₹3,416
Private car above 1500cc₹7,897
Electric car up to 30 kW₹1,780
Electric car 30–65 kW₹2,904
Electric car above 65 kW₹6,712

Base rates under the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022, before 18% GST. Rates are notified by the Government in consultation with IRDAI and can change.

Comprehensive insurance

A comprehensive (package) policy adds own-damage cover to third-party cover. Own-damage protects your vehicle against accidental damage, theft, fire, explosion, natural calamities such as flood and cyclone, riots and damage in transit. The own-damage part is priced on IDV and qualifies for No Claim Bonus and add-ons.

Standalone own-damage

Since September 2019, owners can buy own-damage cover on its own. It exists mainly because new vehicles must carry long-term third-party cover: since September 2018, new cars need three years of TP and new two-wheelers five years. A buyer who took a “1-year OD + 3-year TP” bundle can renew only the OD part each year, with any insurer, as a standalone OD policy.

Long-term third-party premiums for new cars (3 years)

Engine capacity 3-year single TP premium
Up to 1000cc ₹6,521
1001–1500cc ₹10,640
Above 1500cc ₹24,596

Which should you choose?

  • New or financed vehicle: comprehensive (or SAOD alongside the long-term TP). Lenders normally require own-damage cover.
  • Vehicle you rely on daily: comprehensive. Theft, flood and fire are not covered by TP.
  • Very old, low-value vehicle used rarely: third-party-only can be a reasonable choice if you could replace the vehicle from savings.
  • Bundle bought with a new vehicle: renew the OD part each year as SAOD and keep the TP until it expires.

Compare the cost of TP-only, comprehensive and SAOD for your car.

Premium Estimator

FAQs

Can I buy standalone OD without any third-party policy?

No. Standalone OD is only issued when you have a valid third-party policy for the vehicle, which the insurer will verify.

Does third-party cover include PA cover for me?

Compulsory personal accident cover for the owner-driver (₹15 lakh) is bought along with the TP/package policy unless you already hold equivalent cover.

Is “zero dep” a type of policy?

No. Zero depreciation is an add-on to a comprehensive or standalone OD policy.

Sources

  • Motor Vehicles Act, 1988 (as amended in 2019) — compulsory insurance and penalties.
  • Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022 — Ministry of Road Transport & Highways.
  • IRDAI directions on long-term third-party cover (2018) and standalone own-damage cover (2019), irdai.gov.in.

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