Term of the week: Third-party cover

Third-party cover in a motor insurance policy provides coverage against legal liability that arises during an accident. It covers any damage or loss to the third-party’s property or death/disability of third-party, caused by the insured’s vehicle and at the fault of the insured. For instance, if you hit the rear of the car in front of you, then this insurance kicks in and covers the damages to the other vehicle.

Damages to your own vehicle will be covered under ‘own damage’ insurance 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 put together in the same policy.

c:set var="prUrl" value="https://premium.thehindubusinessline.com" />

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.

Related

This article is closed for comments.
Please Email the Editor