18-11-2016 03:12 PM
As per IRDA and govt regulations, third party has been made mandatory in India for all vehicles. The purpose of a third party insurance is to ensure that if a third party (someone else or someone else's possessions) is damaged due to an accident you cause, then they can be paid for their damage without you having to pay for it. It is mandated because in the past those causing the accident would flee the spot, to escape having to pay for the damages. Now, the insurance company pays it so the causing party does not flee but stops and helps the victim.