A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads.

What is third party car insurance in india. Hence you are shielded from the financial liability arising towards a third party. Third-party insurance is a form of liability insurance in which the insured purchases a policy for protection against the claim of a third party. Yes it is true that third-party car insurance is mandatory in India.

Be it death disability injury or sizeable property damage to a third party your insurer compensates for it. This policy does not provide any benefit to the policyholder. This is a compulsory form of motor insurance that every vehicle owner must-have.

The first category under which car insurance is available in India is the third party insurance plans. A Third-Party Liability Insurance offers financial cover to the insured person against any legal liability arising due to lossdamage caused to a third-party person or property. It is mandatory as per The Motor Vehicles Act 1988 and driving without a Third-party Liability policy is a punishable offense.

When you buy a new car it is mandatory for you to buy a car insurance plan too. Third-party insurance is essentially a form of liability insurance purchased by an insured first party from an insurer second party for protection against the claims of another third party. It is an inexpensive form of vehicle insurance.

Means the insurance company will help you pay all the compensation and damages which you are liable to pay to the third-party. Motor third-party insurance or third-party liability cover which is sometimes also referred to as the act only cover is a statutory requirement under the Motor Vehicles Act. As per the Indian Motor Vehicles Act a third party liability cover is mandatory under law and a basic requirement under a vehicles insurance policy.

This cover will pay for any fiscal liability that arises out of the accident. A Third-party Liability car insurance policy is designed to cover the third parties that might be affected by your car. Type 1 Third party car insurance.