Compulsory Third Party Insurance
Compulsory third party insurance is an essential thing for vehicles owners. Read what is third party insurance? The compulsory third party insurance is required by regulation. Third party public liability insurance does not cover the fault driver, it only covers the claims from the third party (injured persons). Read about insurance companies in India
Compulsory Third Party Insurance is also known as CTP. CTP is mandatory to run vehicles.
All car owners must have their vehicles insured before driving it on the road. There is an allotted fine, suspension or revocation of license and/or registration as well as possible jail time for those caught not purchasing car insurance. The minimum that is required by law is known as the third party car insurance. This category of car insurance is for the protection of the third parties against the financial consequences of loss, also damage or injury.
Although there is only optional coverage against the loss or damage to the driver’s own car. There are different policy specifications for the circumstances under which each factor is covered. There is also a different policy where a car can be insured separately against theft, fire damage, or accident damage. The car’s insurance premium can be either mandated by the county or determined by the insurance company that is dependent all on the country’s law with
regards to car insurance. The car’s insurance premium is set in accordance to a framework of regulations.
- It is important to be covered with compulsory third party insurance because it is a protection to other people that you might harm while on the road.
- There are different instances where the accident was caused by distractions to the driver, or the driver falling asleep behind the wheel or plain recklessness.
- Having compulsory third party insurance is an advantage to the vehicle owner because it saves the owner from paying the claim from his/her own pocket.
In CTP, there are three parties involved in this type of vehicular insurance. The driver/vehicle owner at fault is the first party. The CTP insurer of the first party or ‘at fault’ driver is the second party. The injured person involved in the accident is the third party. If a legal liability can be established, then CTP insurance can cover personal injury to that specific party and does not cover damage to property or other vehicles. The cost for CTP insurance is dependent upon the driving record of the driver, age, type of vehicle, and the area where the car is usually garaged. Upon registration of your motor vehicle, having CTP car insurance is usually a compulsory condition. So it is best to be covered with CTP insurance rather than be caught in an accident and have to pay the damages out of your own pocket and not to mention the hefty fine that is imposed when you are caught without a compulsory third party insurance coverage.