Digit Simplification: We all make mistakes! This covers for you if your mistake costs someone else some trouble!
Third-party insurance, which is also called third party liability insurance, is there to cover you against liabilities that can happen in the case of any accidental loss or damage that you caused to any third-party vehicle, person or property.
In this situation, the first party is the vehicle owner, i.e. you! The second party is the insurance company, and the third- party is anyone other than these two parties, i.e. the person/vehicle/property your vehicle has caused trouble to.
Unfortunately, your third-party liability insurance doesn’t cover damages to your own vehicle. (that is covered for in an own damages cover or comprehensive car insurance) However, it is compulsory to at least have a third party insurance according to the Motor Vehicles Act of India.
For example, if you accidentally damage another car’s bumper or another person’s bicycle, your third-party motor insurance will cover for the losses incurred to the third-party due to this.
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