What is a Third party insurance in India?

[Shivani Ingle]

What is a Third party insurance in India?

[Suraj Bhagat]

By definition a 3rd party insurance policy a kind of policy, on which an insurance company agrees to indemnify the insured person, if the insured legally held liable to pay for injuries or damage caused to some one else including property.

It also called as “Act only Cover”

By name as it suggest 3rd Party:

1 Party: The insured

2 Party: The Insurance Company

3rd Party: All who may be legally have a right to claim for damage caused by the act of 1st party (Insured)

[N.Kumari · Accepted solution]

Hi,

It is a cover that protects you against liabilities arising from damage, injury or loss to a third party. The same could be a person or a third party property that sustained damage because of your car. As stipulated in the Motor Vehicles Act 1988, this is a mandatory cover and all motorists must be insured against their liability to other people or property.

1. Liability coverage: You need not worry about any liability against third-party damage.
2. Legal compliance: Helps you comply with the legal requirement.