Motor Insurance is sought in respect of motor vehicles and indemnifies the insurer against any loss or damage to his vehicle or against any legal liability the insurer may incur to third parties in respect of death or bodily injury caused to them or damage to their property caused by the use of the vehicle. A contract of motor insurance is governed by the general law of contract. The Motor Vehicles Act, 1988 has made it mandatory to have insurance of motor vehicles in order to ensure compensation to injured persons in view of the danger posed to human beings in public places by motor vehicles. In case of an Accident Insurance, the policy covers the risk of death or accidental injury of another person and in case of Motor Insurance, the policy covers his third party liability for death or personal injury.
