Third-Party Insurance Now Mandatory: Big Rule Change for Bike and Car Owners Under Motor Vehicles Act. Most general insurance companies do sell comprehensive insurance for car and bikes but having the 3rd party cover is important to ride on the roads in India.
Big news if you own a bike or car in India. Motor Vehicles Act has made third-party insurance compulsory for all two-wheelers and four-wheelers running on public roads in India.
Road accidents in India has raised in past few years. Third-party insurance ensures that accident victims receive due compensation without hassle. It covers the financial liability of the vehicle owner or driver for any damage or injury caused to a third party in an accident.
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What is Third-Party Insurance?
It is a type of general motor insurance that provides coverage to a third party (person or property) which got hit an accident due to injury, death, or damage. It does not cover damage to your own vehicle. To cover your own car or bike under insurance you need to have a first party insurance.
Third-Party Insurance is Now Mandatory
All vehicle owners who own a bike or a car must have valid third-party insurance on the name its vehicle. This includes for both perosnal and commercial vehicles. If you violate this rule or don’t have thrid party insurance for your vehicle, traffic police will impose fine or may impound your vehicle.
Fines & Punishment for not having thrid party insurance for your vehicle
Driving without valid third-party insurance is punishable offence under the Motor Vehicles Act 1988. The following fines or penalties may be applicable based on the situation:
- A fine of up to ₹2,000 for the first offence
- A fine of ₹4,000 for subsequent offences
- Risk of vehicle seizure and even imprisonment in multiple cases
Thrid-party Insurance Policy Duration
For new two-wheelers, a 5-year third-party insurance policy is mandatory at the time when your buy your new bike. For new cars, it is a 3-year third-party insurance is provided. You need to renew the insurance manually after the duration of the initial policy expires.
After getting a third party insurance keep a printed copy with your whenever your’re driving on Indian Roads. Traffic police may ask your to show the proof of insurance. You can also save and show the insurance from DigiLocker or mParivahan app.
