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 motor insurance in india. Third party liability is basically a risk cover whereby in case of an unfortunate event your insurer will compensate you to the extent of your legal liability in such a situation. Third party motor insurance is a kind of insurance under which the insurance company agrees to indemnify the insured person if he is sued or held. 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.

The insured is one party the insurance company is the second party and the person the insured has injured and who is claiming damages is the third party. One is Third Party liability insurance which is just called liability insurance by insurance companies and the other one is first party insurance. NCB is not applicable to third party insurance.

The cost of a comprehensive cover is several times that of a stand-alone third-party cover since damage claims are. Even if they want they drop it at the thought of the hassle involved in the claiming process. It means it is not applicable on third-party car insurance.

This is a compulsory form of motor insurance that every vehicle owner must-have. Type 1 Third party car insurance. Similarly it is not applicable on add-ons as well.

Those who get to benefit from this type of insurance are neither the insurance provider nor the policyholder. Third Party Insurance In India there are two types of car insurance available ie. This is motor insurance that needs to be taken for any private car owned by an individual and is mandated by the Government of India.

So the best thing is to avail at least a third-party insurance plan for your car. Why Should Your Car Insurance Include an Engine Protection Plan. Comprehensive insurance and third party insurance.