Having third party insurance is mandatory As per the Indian Motor Vehicles Act and the Indian Road Safety Act all car owners must have third-party insurance.

What is third party insurance in india. This is a compulsory form of motor insurance that every vehicle owner must-have. The policy allows the insured policyholder first party to claim indemnification from the insurer second party in the following cases. Compensation for third-party injuries in an accident - Consider a scenario in which the owner of the insured car say MrX meets with an.

Third-party insurance is one of the most common types of vehicle insurance. The first category under which car insurance is available in India is the third party insurance plans. This cover will pay for any fiscal liability that arises out of the accident.

This policy safeguards the interests of those who might be injured or whose property might be damaged because of an accident involving the insured vehicle. This comprehensive cover is an add-on to the mandatory third party cover and protects the car owner from financial losses caused by damage or theft of the vehicle. In the Indian context automobile dealers arrange for a comprehensive insurance cover along with vehicle registration.

Damage caused to third-partys property such as car bike or any property. A third party insurance policy is a policy under which the insurance company agrees to indemnify the insured person if he is sued or held legally liable for injuries or damage done to a third party. A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads.

It covers third-party damages up to Rs 75 lakh. Third party insurance compulsory under the Indian Motor Vehicles Act is important as it protects you from basic third party liability When we drive a car there is a very real risk that due to an accident there can be a bodily injury or even death of a person either in the car or outside the car. Third-party motor insurance policy is a must for automobile owners to protect themselves against the claims of a third party if a vehicle meets with an accident.

What is Third-Party Cover. Driving without valid insurance is a punishable offence and it may attract a hefty fine. This policy does not provide any benefit to the policyholder.