What types of vehicle insurance need to be purchased?
1 Answers
New vehicles require the following insurance policies: 1. Compulsory Traffic Accident Liability Insurance: It is a mandatory insurance that must be purchased for motor vehicles. The insurance company compensates for personal injury, death, and property damage caused to victims (excluding passengers in the insured vehicle) in road traffic accidents within the liability limits. Simply put, it is a 'compulsory third-party liability insurance'. This insurance cannot be casually lapsed, as doing so would be illegal. 2. Third-Party Liability Insurance: Abbreviated as 'TPL', it refers to compensation provided by the insurance company when the insured or their permitted qualified driver causes accidental harm to a third party, resulting in personal injury, death, or direct property damage during vehicle use. The compensation limit for TPL is chosen by the insured, typically ranging from 50,000, 100,000, 150,000, 200,000, 300,000, 500,000 to 1,000,000, mainly supplementing the shortcomings of the compulsory insurance. 3. Vehicle Damage Insurance: This insurance covers the loss of the insured vehicle due to natural disasters (excluding earthquakes) or accidents within the scope of insurance liability. The insurer compensates according to the provisions of the insurance contract, which is the opposite of third-party liability insurance.
