Motor Insurance

Third party insurance is mandatory under the Motor Vehicles Act for all motor vehicles in India.
It protects the insured against legal liabilities arising out of damage or injury to a third party.
The main provisions are:
1. Compulsory Coverage — The policy must provide minimum statutory coverage for third party injury or death and property damage.
2. Bodily Injury and Death — The policy covers unlimited liability for death or bodily injury to third parties caused by the insured vehicle.
This ensures that accident victims receive compensation.
3. Property Damage — There is a limit for third party property damage liability.
Currently, this limit is fixed by IRDAI guidelines.
4. Legal Costs — The insurer pays for legal expenses incurred by the insured in defending a claim in court.
5. Exclusions — The policy does not cover damage to the insured’s own vehicle or injuries to the owner-driver (unless covered separately).
It also does not cover contractual liabilities.
These provisions ensure that victims of motor accidents get financial support and the vehicle owner meets legal obligations.

A third party insurance policy is a mandatory insurance cover under the Motor Vehicles Act.
It provides protection to the insured against legal liabilities for damages or losses caused to a third party.
It covers:
1. Bodily Injury or Death — It compensates for injuries or death caused to other people due to the insured vehicle.
2. Property Damage — It covers damage caused to third party property such as vehicles, buildings, or other assets.
3. Legal Costs — It pays for legal expenses arising from third party claims.
However, third party insurance does not cover any damage to the insured’s own vehicle or personal injuries to the owner-driver.