What is Third-Party Insurance and How to Buy It for Your Vehicle
Third-party insurance is a type of vehicle insurance that provides coverage against damages or injuries caused to a third person by your vehicle. It is mandatory by law under the Motor Vehicles Act, 1988 in India. This insurance protects others, not your own vehicle.
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What is Third-Party Insurance?
Third-party insurance covers the legal liability arising due to:
- Bodily injuries caused to another person in an accident.
- Damage to another person’s property.
It does not cover damages to your own vehicle or injuries to yourself. This makes it cheaper than comprehensive insurance, but it provides limited protection.
| Feature | Description |
|---|---|
| Mandatory | Required by law for all vehicles. |
| Coverage | Covers injury/death of a third person and property damage. |
| Exclusions | Does not cover your vehicle or personal injuries. |
| Premium | Lower cost compared to comprehensive insurance. |
| Policy Term | Usually 1 year, can be renewed annually. |
Benefits of Third-Party Insurance
Legal Requirement
You must have it to drive legally.
Protects Others
Pays for damages or injuries caused to others.
Affordable
Cheaper than full insurance for your own vehicle.
Tags
Vehicle Insurance
