Third-Party Fire & Theft Motor Insurance Policy

What Is a Third-Party Fire & Theft Insurance Policy?

As the name may suggest, third-party fire and theft insurance is a motor insurance policy that offers coverage against third-party legal liabilities and protects the insured vehicle against damage/loss due to fire incidents or vehicle theft.

It offers the perfect middle ground between the basic third-party insurance and the expensive comprehensive car insurance. However, third-party fire theft insurance is a lesser-known car insurance option that only a few insurers in India provide.

It is listed under General Regulations (GR) 45 B as “Restricted Cover for Liability Only and Fire and/or Theft Risks” in the India Motor Tariff.

Difference Between Third-Party Fire & Theft and Third-Party Insurance

There are a few major distinctions separating third-party insurance and third-party fire and theft insurance for cars. The following chart highlights these differences:

Difference Between Third-Party Fire & Theft and Comprehensive Insurance

Here is a detailed chart to help you clearly understand the distinction between third-party fire and theft insurance and comprehensive insurance for cars:

Key Factors to Consider Before Buying Third-Party Fire & Theft Insurance

Here are some things you must consider prior to buying the third-party fire and theft insurance policy for your car:

Requirements:

The first thing to consider before buying third-party fire and auto theft insurance is your general requirements. For example, understand the value of your vehicle, how much you will be using it, the risk of damages/losses particular to your location and so on.

Overall coverage:

Understand the coverage offered under the third-party fire and theft insurance and see how it aligns with your coverage goals. Keep in mind that this type of car insurance cover theft and fire damages/losses, alongside third-party liabilities.

Cost:

The third-party fire & theft insurance costs more than the third-party liability only policy but less than the comprehensive car insurance. So, make sure to choose a policy based on both your coverage goals and preferred budget.

Limitations:

Make sure to understand the policy exclusions. For instance, while it protects your car against damage or loss due to theft and fire, it doesn’t cover own damages due to accidents or calamities.

Ideal for:

Third-party fire and auto theft insurance is ideal for certain types of cars. For example, if you own an older car that you rarely drive or drive in a locality with low traffic and risk of accidents, then you may consider this cover.

However, if you use your car a lot and the risk of accidents in your case is high, a comprehensive car insurance policy can be a much better choice. Check out Jio Insurance Broking for a seamless and convenient car insurance buying/renewing experience online.

Exclusions Under Third-Party Fire & Theft Insurance

The third-party fire & theft insurance doesn’t offer coverage in case of the following:

1. Any damage/loss to the insured vehicle due to perils other than theft and fire is not covered.
2. Any damage/loss resulting from mechanical breakdown or electrical failure is not covered.
3. Any damage/loss caused by a person driving the insured car without a valid licence or under the influence of alcohol and/or drugs is not covered.
4. Any injury or loss to the passengers in the insured car is not covered under this policy.
5. Any damage/loss that happened outside of territorial borders is not covered.
6. Any damage/loss caused intentionally or due to negligence is not covered.

Premium of Third-Party Fire & Theft Insurance

By paying the necessary premium, you can buy third-party fire & theft insurance. Here is how the premium chart is calculated:

Cost of Third-Party Fire and Theft Insurance

he cost of the own damage component varies depending on several factors, such as the make and model of the vehicle, its age, location, etc. Whereas the cost of the third-party liability component is fixed by the IRDAI based on the engine or battery capacity. Here are the latest rates:

Private Cars (ICE):

• Under 1000 cc – ₹ 2,094 per year
• Between 1000 cc and 1500 cc – ₹ 3,416 per year
• Over 150 1500 cc – ₹ 7,897 per year

Private Cars (Electric):

• Under 30 kW – ₹ 1,780 per year
• Between 30 kW and 65 kW – ₹ 2,904 per year
• Over 65 kW – ₹ 6,712 per year

Conclusion

If you don’t use your car often but want better coverage without spending a lot for a comprehensive car insurance plan, then you may consider third-party fire and theft insurance. It is a lesser-known car insurance policy that is priced between the third-party only and comprehensive insurance, offering coverage against third-party liabilities and damages to the insured vehicle due to theft and fire.

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