A third-party insurance policy will safeguard you from property damage, physical injuries and death of third-party on the roads. Third-party insurance, which is also known as ‘act-only’ insurance. As per the Motor Vehicle Act, 1988, it is mandatory for every motor vehicle owner to buy at least third-party insurance coverage in India. The policy does not provide any coverage to the insurer. Third party insurance cover is the basic insurance that is compulsory for every car owner to hold while driving.

As per the Motor Vehicle Act, a third-party claim can be filed under the category of ”no fault liability claims” in which the claimant is not obligatory to allege or prove the negligence on the part of the involved vehicle that has caused the accident or “fault liability claim”. It provides coverage for bodily injury/death of a third party (as decided by a court of law) as well as third party property damage up to Rs. 7.5 Lakh.