A third party risk policy covers liabilities

The term third party has not been defined in the Motor Vehicles Act or in the rules.“Third party risks’ Road Traffic act 1930 connotes that the insurer is one party to the contract, that the policy holder is another party, and that claims made by others in respect of the negligent use of the car, may be naturally described as claim by third party. In the definition of the term third party given in section 93 if the Motor Vehicle Act 1939 corresponding to section 145 of the Motor Vehicles Act, 1988, ‘third party’ is defined to include the Government. “ A third party risk policy covers liabilities for death or injury caused to a third person or damage caused to a property of a third party arising out the use of a motor vehicle. Third party Policy is, therefore, wider than the Act policy; It covers liability arising from injury to person or property of a third party or from death of a third party arising out of the use of a motor vehicle insured. Act policy means an insurance policy which is issued by an insurer and obtained by the assured under a mandatory provision of the Act.” Special Provision as to Compensation in case of hit and run motor accident: The special provision contained in sec. 161 to 163 of the act of Motor Vehicles. The Act providing for granting relief to victims or the legal representatives of the victims of “hit and run” motor vehicles accident cases is another novel effort on the part of the Government to remedy the situation created by the modern society which has been responsible for introducing so many facts moving vehicles on Roads. Liability without fault in certain cases: 

• Section 140 (i) of the Motor Vehicles Act follow as “where death or permanent disablement of any person has resulted from an accident arising out of the use of a motor vehicle or motor vehicle, the owner of the vehicle shall or as the case may be, the owner of the vehicles shall jointly and severally, be liable to pay compensation in respect of such death or disablement in accordance with the provision of this section.”
• Section 140(2) says that the amount of compensation which shall be payable under sub section (1) in respect of the death of any person shall be a fixed sum of fifty thousand and the amount of compensation payable under that section  in respect of the permanent disablement of any person shall be fixed sum of twenty thousand rupees.
•  Section 140 (3) says that in any claim of compensation under sub section (1) of the section 140 the claimant shall not be required to plead and establish that the death or permanent disablement in respect of which he claim has been made was due to any wrongful act. Neglect or default of the owner of the vehicle or vehicles concerned or of any other person.