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Third-party insurance is compulsory for all vehicle-owners as per the Motor Vehicles Act. Film Insurance: Third Party Property Damage (TPPD) and Extra Expense. What Motor Insurance cover should I buy?. Private car package policy: this covers loss/ damage to the vehicle insured. What is Third-Party Car Insurance? A Third-Party Liability Insurance offers financial cover to the insured person against any legal liability arising due to. In India, motor third-party insurance or motor third party liability is a mandatory requirement as per the Motor Vehicles Act, 1988.