What is third-party insurance, and how to get compensation in case of injury in an accident?

pc: abplive

You must have heard about insurance while buying a new vehicle. Third-party insurance is also something that you might have come across. Although this insurance will not directly benefit vehicle owners, it has been made mandatory for those buying a new car or bike. The government made it mandatory in 2018, mandating 5 years of third-party insurance for bikes and 3 years for cars.

What is third-party insurance?

Third-party insurance, which every vehicle owner must have, does not provide them with direct benefits. However, the government has implemented it on all vehicles. When one gets his/her third-party insurance, he/she is protected from the expenses incurred in case of an accident. The vehicle owner does not get any financial benefit. Instead, compensation for damage caused to their vehicle in an accident is covered by the insurance company. The first party is the one who has taken the insurance, while the third party is the one who benefits from this insurance.

Benefits for accident victims:

Third-party insurance provides direct benefits to people injured in an accident. This saves drivers in expenses after an accident. If the vehicle insured under this policy is involved in an accident, the financial loss suffered by the other party including medical expenses is covered by the insurance company. This helps prevent financial losses. Many people did not voluntarily opt for this insurance, but it was made mandatory by the government in 2018.