The Supreme Court on Friday said, third party insurance for four-wheeler and two-wheeler will become mandatory from September 1.
The cars and motorcycles which are being sold from September 1 must undertake third party insurance for three and five years.
The order is expected to help victims of road accidents who can recover compensation from insurance companies.
When bikes or cars bought for the first time, the Third-Party insurance is being provided but it does not carry over the following year. Around 66 percent vehicles don’t have third party insurance.
Hence, it is necessary for all the vehicles running on Indian roads to buy third-party insurance and in the case of accidents this insurance will protect the vehicle owner against third party liabilities.
