Question

What is covered under third party insurance policy?

Hint:

Third party = covers other people and their property, not your own vehicle.

Answer 1

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.