В Индии ответственность за ущерб третьим лицам при ДТП не ограничена: почему это должно изменить ваше отношение к страховке

If you drive in India, you are legally required to have at least third party liability insurance. Most people know this. What fewer people appreciate is that when it comes to injury or death caused to another person, this liability has no cap. The financial exposure is, in theory and in practice, unlimited. That single fact should change how every vehicle owner thinks about their coverage. The Legal Foundation Third party liability insurance covers the damage you cause to other people, their vehicles, or their property while driving. Under Section 146 of the Motor Vehicles Act, 1988, no vehicle may be used in a public place without this coverage. The “third party” is anyone outside the insurance contract itself. You are the first party. Your insurer is the second. The pedestrian you hit, the cyclist whose bike you damaged, the passenger in the other car, they are all third parties. So, importantly, are the passengers in your own car, which widens the exposure considerably beyond what most owners assume. The obligation is not optional. Under Section 196, driving without valid insurance attracts imprisonment of up to three months, a fine of ₹2,000, or both, rising to ₹4,000 for a repeat offence. When people compare car insurance quotes online or through agents, the third party component is always included because it has to be. You will also need valid cover in place to get through fitness and renewal formalities for the vehicle. What Gets Covered? Third party insurance pays for three broad categories of harm. First, bodily injury or death caused to a third party. Second, damage to a third party’s property, such as their vehicle, shop front, compound wall, or any other physical asset. Third, legal costs if the injured party takes you to court, which happens more often than people expect. The property damage component has a ceiling, and since the 2019 amendment took effect on 1 April 2022 it is written into the statute. Section 147(2)(b) fixes the limit at ₹7.5 lakh, and it applies across vehicle classes rather than being a market convention for cars. That figure may sound adequate until you consider what happens when a car rams into a luxury vehicle or crashes through a commercial establishment. Now read the clause immediately before it. Section 147(2)(a) covers liability for death or bodily injury and specifies no figure at all. It simply refers to the amount of liability incurred. Parliament capped property and deliberately left life and limb uncapped, and that contrast is the whole story. Why There Is No Upper Limit for Injury and Death Claims? When a third party is injured or killed due to your driving, the compensation awarded by a Motor Accident Claims Tribunal (MACT) is calculated on the victim’s age, income, dependants, future earning potential, and the severity of the injury. There is no statutory maximum. A daily wage labourer killed in an accident might result in a compensation order of several lakhs. A 35-year-old professional earning ₹25 lakh a year could yield a claim of ₹1 crore or more. The Supreme Court, in National Insurance Co. Ltd. v. Pranay Sethi (2017), laid down the structured framework still in use: an addition for future prospects, and standardised conventional heads for loss of estate, funeral expenses and consortium, themselves revised upward every three years. Awards have kept climbing, and the most recent shift is significant. On 11 June 2026, in Shishupal v Surjeet, the Supreme Court created a distinct head called “loss of domestic care” for claims involving homemakers, fixing a minimum stand-in income of ₹30,000 per month, to be revised by 10% cumulatively every three years. Insurers have estimated the ruling will push motor third party loss ratios up by 12% to 15%. Whichever way you look at it, the ceiling keeps moving and there is no number written into the law to stop it. Underneath tribunal awards sit some fixed floors worth knowing. Section 164 provides ₹5 lakh for death and ₹2.5 lakh for grievous hurt on a no-fault basis, without the claimant having to prove negligence. Where the offending vehicle is never traced, Section 161 provides ₹2 lakh for death and ₹50,000 for grievous hurt from the Solatium Fund. Separately, the PM RAHAT scheme approved in February 2026 entitles road accident victims to cashless treatment of up to ₹1.5 lakh per victim for seven days from the date of the accident, reimbursed to hospitals through the Motor Vehicle Accident Fund. One timing point that catches claimants out. Section 166(3), reinserted with effect from 1 April 2022, requires a claim application to be made within six months of the accident. Between 1994 and 2022 there was no limitation period at all, so a lot of older advice still says there is none. High Courts have generally read the new provision liberally and condoned delay where the reason is genuine, but nobody should be relying on that. Your insurer pays the awarded amount on your behalf under the third party policy. But here is the uncomfortable part: if it emerges that you were driving drunk, without a valid licence, or in breach of policy terms, the insurer can recover the entire amount from you personally. The tribunal will still award compensation to the victim, because the law protects the injured party first, and the insurer then has recourse against you. This is the pay and recover principle, and it means a policy is not a shield against your own serious violations. The Financial Exposure Is Real Consider a scenario in a city like Pune or Bengaluru. You run a red light and collide with a two-wheeler. The rider suffers a spinal injury and is permanently disabled. The tribunal calculates lost future earnings, medical expenses (often running into tens of lakhs for spinal injuries), attendant care costs, and pain and suffering. A total award of ₹80 lakh to ₹1.5 crore is entirely plausible. If you hold a basic third party car insurance policy, the insurer covers this. Yet the premium you paid was modest: the notified annual rates for private cars are ₹2,094 up to 1,000cc, ₹3,416 between 1,000cc and 1,500cc, and ₹7,897 above 1,500cc, before 18% GST. The gap between what you pay and what could be claimed against you is enormous. The insurance works precisely because these catastrophic events are rare for any one driver. They are not rare nationally. MoRTH’s Road Accidents in India 2024 report records 4,87,707 accidents and 1,77,175 deaths in a single year, with two-wheeler riders and pedestrians together accounting for more than two-thirds of fatalities. Why a Standalone Third Party Policy May Not Be Enough A standalone third party policy does nothing for your own vehicle. If your car is written off in the same accident, you bear that cost yourself. Own damage cover, whether taken as part of a comprehensive policy or as a standalone own damage policy alongside your third party cover, handles repairs or replacement of your vehicle. It also covers theft, fire, and natural disasters. Many vehicle owners opt for third party only to save money. The premium difference can run from a few thousand rupees to ₹30,000 or more depending on the car’s value. That saving looks rational right up until the moment your own car needs ₹3 lakh in repairs and you have no cover for it. The Unlimited Liability Should Change Your Thinking The absence of an upper limit on injury claims is not a flaw in the system. It exists because human life and health cannot be capped at an arbitrary number. A person rendered paraplegic by someone else’s negligence deserves compensation proportional to what they have lost, not limited by an insurer’s convenience. For vehicle owners, this means third party liability insurance is not a bureaucratic formality. It is genuine financial protection against a risk that could otherwise be ruinous. The premium is modest precisely because the pool of policyholders is vast. But the individual exposure, without that coverage or with it voided by your own conduct, is life-altering. Treat it accordingly.