Third Party Liability Insurance.

Is third party insurance mandatory in india. Why do you need third party insurance for a car. For other businesses it is not mandatory but is highly recommended. This cover will pay for any fiscal liability that arises out of the accident.

The Motor Vehicles Act 1988 mandates this due to the following reasons. Third party car insurance is mandatory in India while the others are optional. 200000 in third-party liability is mandatory.

There are two parts of any motor insurance policy. Hence third-party liability bike insurance was made mandatory by law. A third party car insurance policy provides the most basic coverage and is more affordable as compared to a comprehensive plan.

If you fail to comply with this law you will have to face monetary penalties. This policy does not provide any benefit to the policyholder. But in case of third party property damage IRDA have already imposed an upper cap of Rs750000.

For those who are not familiar with the law governing bike insurancepurchasing at least a Third-party Liability Two-wheeler Insurance Policy is compulsory in India. In India Third Party Insurance is more than just a precautionary safe-guard. Any vehicle used for social domestic and pleasure purpose and for the insurers business motor purpose should be insure.

It is mandatory and covers any financial liability the policy holder may incur from a third party damage liability covers costs resulting from damages to or loss of property. According to the Motor Vehicle Act 1988 if you are driving a car on Indian roads without a valid insurance plan then you may face serious legal issues. In India motor third-party insurance or motor third party liability is a mandatory requirement as per the Motor Vehicles Act 1988.