Understanding liability in vehicle insurance: What car and bike owners should know
What is liability coverage?
Liability coverage, often referred to as third-party insurance, is a mandatory component of both car insurance and bike insurance in India. But what does it precisely cover? Picture this situation–you are driving your newly purchased car through the busy streets of Mumbai when suddenly a motorbike crosses your path unexpectedly. Despite hitting the brakes, you couldn't avoid the collision. Now what? This is where your third-party liability coverage comes into play.
Understanding third-party liability coverage
This type of insurance covers any damage or injury caused to another person (the third party) by your vehicle. From medical expenses, if there are injuries or even fatalities, to compensating for any property damage caused by your vehicle – these are covered under third-party liability.
However, it's important to note that while it covers costs associated with harm or damage inflicted upon a third party by your vehicle, it doesn't cover any damage to you or your vehicle. So, if your car sustains damages after that collision with the motorbike in Mumbai, these would not be covered under third-party insurance.
Vehicle insurance is a mandatory requirement as per The Motor Vehicles Act, 1988. Non-compliance can lead to monetary penalties and legal issues. Thus, make sure to buy vehicle insurance and keep the policy active by renewing it before its expiry date. You can buy/renew vehicle insurance easily, quickly, and conveniently via the ACKO website/app for a hassle-free insurance
