Personal Finance

Term of the week: Third-party cover

| Updated on April 28, 2019 Published on April 28, 2019

Third-party cover in a motor insurance policy provides coverage against any legal liability that might arise during an accident.

It covers any damage or loss to a third party’s property or the death/disability of a third party caused by the insured’s vehicle and at the fault of the insured. For instance, if you hit another vehicle with your’s, this insurance kicks in and covers the damages to the other vehicle.

Damages to your own vehicle will be covered under the ‘own-damage’ cover.

While third-party insurance is a statutory requirement under the Motor Vehicles Act, the own-damage cover is optional.

Most motor insurers provide a comprehensive cover with both third-party and own-damage cover included under the same policy.

Read further by subscribing to

The Hindu Businessline

What You'll Get

  • Web + Mobile

    Access exclusive content of the Hindu Businessline across desktops, tablet and mobile device.

  • Exclusive portfolio stories and investment advice

    Gain exclusive market insights from the Hindu Businessline's research desk.

  • Ad free experience

    Experience cleaner site with zero ads and faster load times.

  • Personalised dashboard

    Customize your preference and get a personalized recommendation of stories based on your intrest.

This article is closed for comments.
Please Email the Editor