Motor cover: Human angle of a different kind

Motor insurance may sound like another boring financial product — till the day you actually need it.

There are two parts to it. The first is straightforward — your own vehicle is insured for damage in an accident. The second, and often the more critical one, is the third-party (TP) liability cover. In simple terms, if your vehicle injures someone or damages someone else’s property, you’re legally responsible for compensating them. The TP policy steps in here — it pays on your behalf.

This cover isn’t optional; it’s mandatory under the Motor Vehicles Act, 1988. It’s considered social legislation because it protects the accident victim (or their family, in case of death or disability).

Now, to clear the classic doubt — who’s the third party? You’re the first party, your insurance company