The Government of India has made rules for driving on the road. Everyone must follow them. If you do not follow, you may pay a big fine. If you drive a vehicle without third-party insurance, you can face big loss. So, if you drive a truck, bus, or car, third-party insurance is very important. This insurance pays for the damage of others in an accident. It also gives legal safety while driving.
Under the Motor Vehicles Act, 1988, third-party insurance (TPI) is must for all cars and two-wheelers in India. But many drivers still do not take it. In 2023, Minister of State for Finance Bhagwat Karad said that more than 50% of vehicles in India run without this insurance. This is a big break of law. Without this insurance, both drivers and victims face many problems. It also becomes hard to save them.
Know what is third party insurance
Third-party insurance is a simple type of motor insurance. In this plan, you do not get money for your own accident, but the other person gets it. For example, if your bike or car hits another bike or car, your insurance company pays for the other person’s damage. It is called “third party” because three people are there – you (policy holder), the insurance company, and the person who has loss (third party).
As per the Motor Vehicle Act, if any accident happens and someone’s body or property gets damaged, the vehicle owner must pay. If you have third party insurance, then the insurance company pays instead of you. This covers the loss of others, gives safety from court cases and legal costs. You get big safety with small premium. Also, it is a legal need. But remember, TPI does not pay for your own vehicle damage or your medical cost.
What if you don’t have third party insurance?
Not having third party insurance is a crime. If you are caught driving without valid insurance, traffic police can give you heavy fine or even jail up to 3 months under the Motor Vehicles Act. If you say no to third party insurance while buying a vehicle, you may face big loss later. If you drive daily or travel long distance, you must have third party insurance. Whatever the vehicle is – bike, car, bus, or truck – always take third party insurance.