What is third party in motor insurance? - Motor insurance - ghlatest

All about Third Party -Two-wheeler Insurance

The third party in motor insurance - Third-party two-wheeler insurance is the policy that protects only riders against any damages caused to a third party. Third-party two-wheeler insurance is also known as only liability insurance. As per Indian Motor Vehicles Act, 1988, if anyone is driving a two-wheeler motor vehicle it is mandatory to have at least a valid third-party two-wheeler insurance policy.

Why third-party two-wheeler liability insurance?

· Third-party insurance will protect against damage/loss of the third party or third party property.

· As it is mandatory by law to have insurance thus people with fewer budgets or just for formality basis buy this insurance.

· Apart from third-party expenses, it also covers policyholder expenses which can be availed by buying a comprehensive two-wheeler insurance policy.

Advantages of third party two-wheeler liability insurance policy

· Third-party two-wheeler insurance protects policyholders against legal obligations arising out of damage to third parties. Third-party insurance can be for an individual person or a property.

· Third-party two-wheeler insurance is financially economical as compared to comprehensive motor insurance.

Also Check:   What is motor insurance? 

· Third-party two-wheeler insurance is easier and requires less documentation. This is because it covers only the third party and not the insured vehicle.

Disadvantages of third party two-wheeler liability insurance policy

· It does not provide coverage to the insured vehicle or the rider/owner of the vehicle.

· In a case of an accident, the policyholder is required to bear all the costs incurred due to damages to the vehicle.

Inclusion of third party two-wheeler liability insurance policy

· Third-Party Insurance covers the expenses cost of damages caused to third-party property and persons due to accidents.

· Even the policyholder expenses can be included as an add-on to the cover which can be availed by buying a comprehensive two-wheeler insurance policy.

Exclusions of third party two-wheeler liability insurance policy

· Normal wear and tear Tyre, tubes, and general aging of the vehicle.

· Mechanical/electrical breakdown.

· Driving without a valid license.

· Driving the vehicle under the influence of drugs or liquor.

· Loss/damage due to war, or nuclear attack

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