Third Party Insurance - Security against defiance of rules!!

Third party insurance policy is mandatory under various economic activities where the owner is required to purchase an insurance policy for his motor vehicles, public carriers, factories, office etc where any industrial activity is being performed and any member of public or employee is exposed to risk of life or injury therefrom. 

Maximum use of third party insurance policy is in use of vehicles by private owners who purchase the policy along with registration of scooter, bike, car jeep etc as a prerequisite imposed by motor vehicles act.

However as the insurance only provides financial security in case the liability arises, it is supposed to impress upon the owner of vehicle that he is free from liability in case of accident and insurance co will pay the claim of person hurt by his vehicle if any. In other words, by having insurance, one gets the freedom from compliance of traffic rules & regulations, drives the vehicle negligently or carelessly on public roads. 

Although the law is clear on the subject that only financial security is provided by insurance and statutory defaults can not be compensated by any person to the defaulter, yet the conspicuous notice must be given to the insured as well as owner in the policy, traffic rules, RTO, registration certificate etc that in case of accidents due to negligence and default of traffic rules if any, no insurance claim shall be admissible and policy will lapse. MACT should also impound the insurance policy where the accident is caused out of non-adherence to traffic rules and personal liability should be fixed on the user and owner both. The limit on compensation amount as per type n value of vehicle should also be removed by law as a cost of injury or life can not by limited by the type of vehicle, class of owner or violation of rule etc.