MANAGEMENT

Detailed explanation-1: -The Motor Vehicles Act, 1988, makes it mandatory for all vehicles to have a minimum level of insurance cover. This is referred to as the third-party liability insurance.

Detailed explanation-2: -Yes, third party motor insurance is mandatory for two-wheelers and four-wheelers in the country. This mandate has been set by The Motor Vehicles Act, 1988.

Detailed explanation-3: -Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

Detailed explanation-4: -In case third-party property damage is caused by the insured vehicle, a maximum compensation of up to 7.5 lakh can be filed. If the court decides any amount above that slab, the remaining amount will be paid by the policyholder.

Detailed explanation-5: -In India, as per the Motor Vehicles Act, it is mandatory that all vehicles that operate in any public space must have a motor vehicle insurance cover. Policyholders must have at least ‘third party liability’ motor insurance cover even when opting for the basic insurance plans.