You are not allowed to operate a vehicle without this insurance.

What is third party car insurance meaning. Also known as Liability-Only policy or Act-Only policy this type of four wheeler insurance provides coverage benefit only to third parties. Third-party liability insurance is mandatory coverage for all drivers in Canada. A third-party car insurance plan provides coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault.

One reason to have car insurance is that in most states its required by law. 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. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement.

It is referred to as a third-party cover since the beneficiary of the policy is someone other than the two parties involved in the contract the car owner and the insurance company. It covers damages and injuries caused by the insured vehicle to a third-party person or property. Third party car insurance covers damage to others as a result of an accident thats your fault.

Third party car insurance can be defined as liability insurance that is designed to provide protection to other motorists and property owners for the damage you cause. So this is usually the other driver involved in an accident. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or.

The third party is someone who files for liability claims against you the insured. It offers protection for drivers if theyre at fault in an accident and the other party is hurt or even killed. The main purpose of a Third-Party car insurance is to cover you from losses and damages caused to a third-party due to your own car.

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