[url][/url]What is Motor Third-Party Insurance?

According to the Motor Vehicle Third Party Insurance Act of 1945. The act made it mandatory for all vehicle owners and users to obtain the Third-Party Insurance before putting their vehicles to use on the road or highways to protect the public or third parties that may sustain death, injuries or damage to their assets and properties following an accident caused by the insured vehicle.
It therefore has become a punishable offense for any person contravening the provisions of the law. Before this act was enacted, innocent third parties or members of the public were unduly exposed to uninsured risks of this nature, and were therefore left to suffer as there was no form of compensation or relief accessible to them.

How Does Motor Third-Party work?

In strict compliance with the enabling Act, all motor vehicle owners are compulsorily mandated to buy the Third-Party Insurance cover before they could drive or put their vehicles to use on the roads or highways. If any vehicle owner or operator fails to comply, it becomes a breach of the provisions of the law leaving the culprit to penalties under the law. This explains why the law enforcement agents oftentimes conduct spot-checks of vehicle insurance papers on the highways.

What are the Covers provided?

In line with the objectives underlying the enactment of the Motor Third Party Insurance, the covers which are solely meant to protect the interest of the general public – innocent Third Parties are broadly in two categories namely:

1.To pay compensation in an unlimited quantum or amount for any third party sustaining death or bodily injury resulting from an accident involving the insured vehicle.

2.To pay compensation for damage to asset or properties of third parties resulting from an accident involving the insured vehicle up to a limit under the standard policy provision, that can always be extended to higher limits at an extra charge.

3.To pay for legal cost and expenses incurred with the consent of the insurance firms providing the cover in defending any legal action or liability claim consequent upon an accident involving the insured vehicle.

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