THIRD PARTY INSURANCE IN MOTOR VEHICLE

ACT1988 Sec 145 to 164

TYPES OF MOTOR INSURANCE

1. PRIVATE CAR INSURANCE
INSURANCE TAKEN FOR OWN CAR, THAT IS THE CAR IS USED FOR PRIVATE USES AND NOT
FOR THE COMMERCIAL USES.
2. COMMERCIAL VEHICLES INSURANCE
Vehicle that has used only for the commercial purposes.that has been involed for the
delivery of good, and for business purposes, and for transportation business etc.
3. DEFENSE VEHICLE INSURANCE.
Vehicle involved for defence purpose, heavy vehicles used for the defence purpose and
insurance is taken for that heavy vehicles.
4. Two wheeler insurance
It is the insurance taken for the own two wheelers.

While taking insurance for the vehicle it is mandatory to mention the type od vehicle and the
purpose the vehicle has been used.

In the policy it should be mentioned that whether it is for the private purpose or for the commercial
purpose or for the business etc., So that the premium amount can be decided and the risk also
covered under the policy for the vehicle.
THIRD PARTY LIABILITY
Two components are there under third party liability:-
1. Third party liability (that is mandatory).
2. Owners damage (optional).
THIRD PARTY LAIBILITY. (without other persons fault)
Third party liability is when the owner met with the accident and caused
damage to other person property or another person life or any injury, it
becomes importance that owner should take insurance which would
provide coverage to help out to recover to the person from damage of
property or life or injury.
Even if your vehicle has been registered and the owner is having driving
licence it is mandatory to take an third party insurance which would be
comprised in the insurance policy of motor insurance which has been
taken.
OWNERS DAMAGE
The owners damage that is optional the damage that is happening to the
owners own vehicle.
Factors affecting premium.
1. Type of vehicle.
What type of vehicle are been used whether the two wheeler, private
car, commercial vehicle etc that would be determining the premium.
Eg : if the owner is using the vehicle for commercial purpose then
there will be borne to more risk, because that would be used for
daily business activity.as private car are used as compared to
commercial vehicles.so the premium will be less than the
commercial vehicle for the own vehicle.
It is mandatory to mention that what type of vehicle is been insured
while taking the policy.
2. Physical condition of the driver.
The physical condition of the driver that is the driver is not that
much healthy enough and not having that much of skills of driving
or any disability then there would be more risk for the accident so
that the premium amount will be higher as compare to that of the
driver who is having good health and having good skills for driving
3. Geographical area of use
Its also decide the premium amount, the geographical area also
determines the risk involve, whether the vehicle is used in more
populated area or the rural area or may be driving in the hill area
which are more borne to risk as compared to city areas, thus the
geographical area should be mentioned where the vehicle has been
 used, that differentiate the premium amount as per the risk of the
location.
4. Age of vehicle.
How much the vehicle has been used, that would depreciate the year
and year value of the vehicle, that would decide the value of the
premium.