ICICI Lombard Third Party Car Insurance Policy: Coverage, Premium & Legal Benefits

Car insurance is not just a financial safeguard—it’s also a legal requirement in India. As per the Motor Vehicles Act, every car owner must have at least a third-party car insurance policy. Among the trusted insurers, ICICI Lombard Third Party Car Insurance stands out for its strong claim support, wide reach, and transparent processes.

With over 15 years of experience in the insurance industry and having written 10,000+ blogs, I’ll walk you through everything you need to know about ICICI Lombard’s third-party car insurance – from coverage and premium to legal benefits, using EEAT (Experience, Expertise, Authority, Trustworthiness) writing principles.

What is Third-Party Car Insurance?

Third-party car insurance protects you against legal liabilities arising from:

  • Injury or death of a third person
  • Damage to third-party property

It does not cover your own car’s damage. This policy is mandatory under Indian law and helps car owners comply with legal requirements.

Why Choose ICICI Lombard Third Party Car Insurance?

ICICI Lombard is one of India’s most reliable general insurers. Their third-party policy offers:

  • Legal compliance
  • Quick claim processing
  • Nationwide presence
  • Strong customer support
  • Transparent policy terms
  • Easy online purchase & renewal

Coverage Under ICICI Lombard Third Party Car Insurance

What’s Covered?

1.     Bodily Injury or Death

  • Covers medical expenses, disability, or death of a third person caused by your vehicle.

2.     Property Damage

  • Covers damage to third-party property up to ₹7.5 lakh.

3.     Legal Liability

  • Covers court-awarded compensation and legal costs.

4.     Passenger Liability (If Applicable)

  • Covers passengers as per policy terms.

What’s NOT Covered?

  • Damage to your own car
  • Theft of your vehicle
  • Natural disasters
  • Fire or explosion
  • Drunk driving cases
  • Driving without a license
  • Wear and tear

ICICI Lombard Third Party Premium

Third-party premiums are fixed by IRDAI and do not vary across insurers. Premium depends on:

  • Engine capacity
  • Vehicle type
  • Age of vehicle

Sample Premium Structure (Approx)

(Premiums may change as per IRDAI updates)

1.    Up to 1000cc – ₹2,094

  • Applicable for small cars with engine capacity up to 1000cc
  • Ideal for hatchbacks like Alto, Kwid, WagonR, etc.
  • Premium is lowest as risk and repair cost are comparatively lower
  • Fixed by IRDAI and same across all insurers

2.    1001cc – 1500cc – ₹3,416

  • Applicable for mid-segment cars
  • Includes sedans and compact SUVs like Swift, Baleno, i20, etc.
  • Premium is moderate as engine power and risk increases
  • Suitable for daily commuters and family cars

3.    Above 1500cc – ₹7,897

  • Applicable for high-end and luxury vehicles
  • Includes SUVs and premium cars like Fortuner, XUV700, BMW, etc.
  • Premium is highest due to:
    • High engine power
    • Higher accident risk
    • Expensive spare parts

Key Takeaway

  • Higher engine capacity = Higher premium
  • Rates are regulated by IRDAI, ensuring transparency
  • Same premium across all insurance companies

Legal Benefits of Third-Party Insurance

Having ICICI Lombard third-party insurance gives you:

  • Compliance with Indian law
  • Protection against legal penalties
  • Financial protection in court cases
  • Coverage for victim compensation
  • Peace of mind while driving

Penalty for No Insurance:

  • Fine up to ₹2,000
  • Imprisonment up to 3 months
  • ₹4,000 fine for repeat offense

How to Buy ICICI Lombard Third Party Insurance Online?

Follow these easy steps:

  1. Visit the official website or a trusted platform
  2. Enter vehicle registration number
  3. Select "Third Party Policy"
  4. Check premium
  5. Make a secure payment
  6. Get the policy instantly via email

How to Renew ICICI Lombard Third Party Policy?

  • Enter policy number
  • Review details
  • Make payment
  • Get renewed instantly

Tip: Renew before expiry to avoid penalties and inspection.

Claim Process for Third-Party Insurance

Third-party claims follow a legal process:

Step-by-Step Process

  1. File FIR immediately
  2. Inform ICICI Lombard
  3. Submit claim documents
  4. Court hearing (MACT)
  5. Compensation awarded
  6. Claim settled by insurer

Documents Required

  • FIR copy
  • Driving license
  • RC copy
  • Insurance policy
  • Court notice

Who Should Buy Third-Party Insurance?

This policy is ideal for:

  • Old car owners
  • Low usage vehicles
  • Budget-conscious users
  • Legal compliance seekers
  • Commercial vehicles (mandatory)

Third Party vs Comprehensive Policy

4.    Legal Cover

  • Third Party:
    Provides legal protection against third-party injury, death, or property damage as mandated by Indian law.
  • Comprehensive:
    Includes third-party legal cover along with protection for your own vehicle.

5.    Own Damage Cover

  • Third Party:
    Does NOT cover damage to your own car caused by accident, flood, or fire.
  • Comprehensive:
    Covers repair costs of your own vehicle in case of accident, natural disaster, or vandalism.

6.    Theft Cover

  • Third Party:
    No protection if your car is stolen.
  • Comprehensive:
    Covers financial loss in case your vehicle is stolen or totally damaged.

7.    Premium

  • Third Party:
    1) Premium is low as coverage is limited and rates are fixed by IRDAI.
    2) Ideal for budget-conscious car owners.
  • Comprehensive:
    1) Premium is higher due to extensive coverage.
    2) Worth it for complete financial protection.

8.    Add-On Covers

  • Third Party:
    Add-ons are NOT available with a third-party policy.
  • Comprehensive:
     You can enhance coverage with add-ons like:
    • Zero depreciation
    • Engine protection
    • Roadside assistance
    • NCB protection

Benefits of ICICI Lombard Third Party Insurance

  • Affordable premium
  • Legal protection
  • Strong brand trust
  • Quick documentation
  • Easy renewal
  • Dedicated support team

Why ICICI Lombard is Trusted?

  • 20+ years in insurance
  • Backed by ICICI Group
  • 3+ crore customers
  • High claim settlement ratio
  • Digital-first approach

Frequently Asked Questions (FAQs)

Q.1. Is ICICI Lombard third-party insurance mandatory?
Yes, it is compulsory under Indian law.

Q.2. Does third party policy cover my own car?
No, it only covers third-party liabilities.

Q.3. Can I buy an ICICI Lombard policy from SquareInsurance?
Yes, you can easily buy ICICI Lombard third-party car insurance through squareinsurance, where you get expert assistance and the best deals.

Q.4. How long is third party policy valid?

You can buy 1-year or 3-year policies depending on vehicle type.

Q.5. Can I upgrade to comprehensive later?
Yes, you can switch anytime during renewal.

Expert Opinion (EEAT Perspective)

With 15+ years in the insurance industry, I’ve observed that many car owners underestimate legal risks. ICICI Lombard’s third-party policy ensures strong legal protection and smooth claim handling, especially in court-based cases. It’s a smart choice for compliance and peace of mind.

Conclusion

If you’re looking for a budget-friendly, legally compliant car insurance, ICICI Lombard third-party policy is a solid option. While it doesn’t cover your own vehicle, it shields you from heavy legal and financial liabilities.

For complete protection, you may later upgrade to a comprehensive plan.

Note:

Download our app "Square Insurance POS – Apps on Google Play" to compare policies, track renewals, manage clients, and grow your insurance business digitally.

 

 

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