Third Party

Motor Insurance

Third Party

As per Motor Vehicles Act, 1988, ‘Third Party Insurance’ is a statutory requirement. The idea of the third party comes from the fact that the prime beneficiary of the policy is neither the original insured nor the insurance company, but a pretentious third party. Herein, this motor third party insurance policy will cover for the fiscal liability that is incurred by the owner of the car in the event of unforeseen demise or permanent disability of the third party, which was crashed by the vehicle of the policy holder in an accident. As per the rules, Insurance Regulatory and Development Authority (IRDA) of India compute the damages.