If you refuse or hesitate in taking third party insurance while buying any vehicle, then you may have to pay its damages in future. Buying a car or driving a bike/scooter or any commercial vehicle without purchasing a motor insurance policy is a punishable offence. If caught illegally, the traffic police can impose a heavy fine or imprisonment of up to 3 months.
As per Section 146 of the Motor Vehicles Act, 1988, third-party (TP) insurance is mandatory to be able to drive on Indian roads. But what exactly is it? What will be the benefit from this, we are going to tell you about it through this news.
What is third party insurance?
Third party insurance is the one in which you do not get the claim for any accident caused by you but the other person gets it. Suppose your bike or car collides with another bike or car, then your insurance company compensates the loss caused in the accident.
What will happen if there is no third party insurance?
Not having third party insurance is a punishable offence. If you are caught driving without a valid insurance policy, the traffic police can impose a heavy fine or imprisonment of up to 3 months as per the Motor Vehicles Act. If you refuse or hesitate in taking third party insurance while buying any vehicle, you may have to pay its damages in future. Be it a car or a bike/scooter or any commercial vehicle, driving it without purchasing a motor insurance policy is a punishable offence.
Benefits of third party insurance
As told above, it is mandatory to get third party insurance. Now a question arises in the mind that what benefit will we get from this, the answer to which I am going to give you. Talking about the benefits of third party insurance policy, according to the Motor Vehicles Act, if a vehicle meets with an accident and there is damage to someone’s body or property, then the vehicle owner has to compensate for the loss, which is paid. The responsibility lies with the insurance company.
Third party insurance covers various types of compensation such as compensation for death or bodily injury of someone else, compensation for damage to another person’s vehicle or property, payment for legal and hospital expenses, etc.
