Third Party Insurance: You must have heard about insurance while buying a car. Whatever new car you want to buy, it also has insurance. You must have also heard of third party insurance in this. Even if the vehicle owner does not get any benefit from this insurance. But still this insurance has been made very important for those buying a new car or bike. The government has made it mandatory for new vehicles in the year 2018. It is mandatory to get third party insurance for 5 years for bike and 3 years for car. Let us know what this third party insurance is.
What is third party insurance?
Third party insurance is done by the vehicle owner. He does not get any direct benefit from it but still the government has implemented it for all vehicles. When someone gets his third party insurance done. So he is saved from the expenses incurred in an accident. The vehicle owner does not get any financial benefit in this. Rather, the vehicle or person with whom the accident occurred. Its compensation is compensated by the insurance company. In this, the first party is the one who has taken this insurance. The third party is the one who gets the benefit of this insurance.
Accident injured get benefits
The direct benefit of third party insurance is given to the person injured in the accident. This saves the driver from the expenses incurred after the accident. The driver who has taken this insurance meets with an accident on his vehicle. Then whatever financial loss the other person suffers. Whatever injury he gets, whatever the cost of treating it. She picks up the insurance company. Due to which financial loss can be avoided. Many people did not get this insurance done. But from 2018 the government has made it mandatory.
