The Union Ministry of Road and Transport has made changes in the rules, after which you can now find it expensive to drive without insurance on the road. Vehicle insurance is essential, not only to avoid hefty challans. Rather, it is also useful in protecting against unexpected threats. It keeps the driver and the owner safe from unfortunate incidents like theft or accident. Let us tell you that there are two types of motor insurance – first party and third party insurance.
In such a situation, it is very important for you to know which of the two insurance is beneficial for you and what is the difference between these two. Let’s know about these insurance-
What is third party insurance
As the name suggests, in third party insurance, the benefit goes to the third party instead of the owner of the vehicle. In this insurance, the third party is the person who has to be compensated for the loss caused. Suppose your bike or car unfortunately gets into an accident with another bike or car, then your insurance company bears the compensation for the damage caused to the third party in the accident. However, if your own vehicle gets damaged. Or you get injured. So you will not get any help from the insurance company. Let us also tell you that third party insurance is compulsory. Without third party insurance, you cannot drive your vehicle on the road.
Now know what is first party insurance
Everything is covered in first party insurance. From your own vehicle to injury to yourself and third parties, the insurance company takes care of everything. Under first party insurance, you can claim even if your vehicle is stolen or there is some damage. This allows the vehicle owner to claim zero depreciation twice a year. First party insurance is optional, if you want to take it, if you do not want to take it, you can also avoid it. The scope of this insurance is very wide. Because in this the insurance company compensates for the loss of both the parties.
How many years will be punished for not having insurance, what does the law say
The government has made third party insurance legally mandatory for all those who have a vehicle. According to the new rules, driving a vehicle without valid insurance can be punished with a fine of Rs 2,000 or imprisonment for 3 months or both. Under Compulsory Accident Insurance, it is necessary to take accident insurance of minimum Rs 15 lakh with both types of insurance plans. By taking first party insurance, the road accident cover can be increased to more than Rs 15 lakh. Whereas in third party insurance, compulsory accident insurance is available only up to 15 lakhs.
