NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Non-Life Insurance Products
Under a standard motor insurance portfolio in India, which cover is mandatory by law for every motor vehicle used in a public place?
Third-party liability cover is mandatory for every motor vehicle used in a public place under the Motor Vehicles Act. It protects victims of accidents. Own damage cover and add-ons like zero depreciation or engine protect are optional and chosen by the vehicle owner.
- AOwn damage cover
- BThird-party liability coverCorrect
- CZero depreciation add-on
- DEngine protect add-on
Explanation
The Motor Vehicles Act requires every vehicle used in a public place to carry at least third-party liability insurance. Own damage cover and add-ons such as zero depreciation and engine protect are optional choices made by the owner.
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