Hence the government of India made it mandatory for vehicle owners to buy at least a Third-Party Car Insurance.
Is third party insurance compulsory in india. It can leave you and the others involved in the accident financially strained and distressed. The maximum compensation it offers for property damage is only Rs 1 Lakh. Among the two types of car insurance in India the third-party TP car cover serves to protect the insured from claims arising from a third party when the insured persons vehicle is at fault.
In case of two-wheelers the five year-third party insurance will cost Rs 1045 for vehicles with engine capacity below 75 cc Rs 3285 75-150 cc Rs 5453 150-350 cc and Rs 13034 exceeding 350 cc. In India as per the Motor Vehicle act at least having a third-party commercial vehicle insurance is compulsory. The compulsory investment into car insurance makes sure that no individual would be caught with an extremely high bill of repairs if they get into an accident as the other partys insurer would compensate for the repair of the damages caused to them as the third party.
This rule is in accordance with The Motor Vehicles Act. There are two types of Car insurance policies Third party Car Insurance and Comprehensive Car Insurance. It takes care of third party liabilities in the event of an accident including bodily injury death and property damage.
These accidental mishaps can sometimes be devastating for you your family and other third parties. As per the rules no vehicle can run on the road without TP insurance. This cover will pay for any fiscal liability that arises out of the accident.
In the Indian context automobile dealers arrange for a comprehensive insurance cover along with vehicle registration. But what exactly is it. 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.
If you are caught driving without a policy then you are liable to pay a fine of Rs2000-. The idea was to build a security for the injured or their dependents. In India under the provisions of the Motor Vehicles Act 1988 it is mandatory that every vehicle should have a valid Insurance to drive on the road.