Rights And Liabilities Of Third Party In Motor Insurance

Authors: Vijay Chauhan a 4th year student at University of petroleum and energy studies and Co-author- Oorja Jain a 5th year student at Banasthali Vidhyapith Rajasthan

A. Introduction to Third Party Insurance terms

Insurance is a contract whereby one party agrees to compensate the loss or discharge the liability of another person. And in case of motor insurance in India, this also includes the loss suffered by third person. Motor insurance and all third-party rights and liabilities with respect to it are covered by Motor Vehicle Act 1988, in India. Part XI of the Acti.e. Insurance of motor vehicle against third party risks (from section 145 to 164), solely deals with provisions related to third party. Apart from the said Act, the Insurance Act, 1938 via its section 32-D creates obligation of insurer in respect of insurance business in third party risks of motor vehicles.