You Killed Someone on the Road. Does Your Insurance Cover the ₹1 Crore Compensation?

🚗 Hitting a Mercedes vs. Hitting a Person

It sounds cruel, but legally, hitting a luxury car can financially destroy you faster than hitting a person.
Imagine you lose control of your Swift and crash into a brand new Mercedes S-Class. The car is totaled. The repair bill is ₹50 Lakhs.

You think, "Thank God I have Third Party Insurance."

But then your insurer tells you: "Sir, the statutory limit for Property Damage is capped at ₹7.5 Lakhs. We will pay that. You have to pay the remaining ₹42.5 Lakhs from your own pocket." You are essentially bankrupt. Understanding the critical difference between "Death Liability" and "Property Liability" is a survival skill for every Indian driver.

Third Party (TP) Insurance covers your legal liability towards others. Under the Motor Vehicles Act, 1988 (and 2019 Amendments), it is split into two distinct parts.

You Killed Someone on the Road.

1. Bodily Injury / Death (UNLIMITED)

If you accidentally injure or kill a pedestrian or another driver.
• The Motor Accident Claims Tribunal (MACT) decides the compensation based on the victim's age, income, and dependents. It could be ₹1 Crore or even ₹10 Crores.
• Your Insurer pays 100% of this amount. There is NO upper limit. You are financially safe.

2. Property Damage (CAPPED at ₹7.5 Lakhs)

If you damage someone's asset (Car, Shop, Wall, etc.):
• The standard TP policy strictly limits coverage to ₹7.5 Lakhs for Private Cars and ₹1 Lakh for Two-Wheelers.
• Any claim amount above this limit is YOUR personal liability.

The "Discount" Trap.
Some unethical agents or online portals offer a ₹50 discount on premiums by selecting an option to "Restrict TPPD Liability to ₹6,000."
NEVER DO THIS. Saving ₹50 exposes you to damages worth Lakhs. Always check your policy wording to ensure it says "TPPD limit: ₹7.5 Lakhs."

Why Is This Relevant in 2026?

In the past, people rarely sued for car damages in India due to slow courts. They just claimed their own insurance.
However, with the rise of expensive EVs and luxury cars, insurance companies are increasingly using "Subrogation Rights." This means the Mercedes owner's insurer will pay for the repairs but will then sue YOU to recover the cost. The "chalta hai" attitude is no longer safe.

🛡️ Chief Editor’s Verdict

Unlimited for life, limited for metal. Know the difference.

1. Check Your Policy: Look for the section titled "Limits of Liability" on your policy certificate. Ensure TPPD is at the statutory max of ₹7.5 Lakhs.
2. Drive Defensively: Since you cannot buy higher TP coverage for property damage in India (unlike in the West), your only protection against a ₹50 Lakh liability is to not hit the car in the first place.

Don't save ₹50 to lose your future.

⚖️ Legal Disclaimer:
The information provided in this article is based on the Motor Vehicles Act, 1988 and IRDAI regulations valid as of January 2026. Third Party Liability rules are statutory. While the insurer covers civil liability up to the limits mentioned, criminal liability (for rash driving or negligence) remains the driver's personal responsibility. Always read your policy document carefully.