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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 Insurance Explained. What is "No Claim Bonus"? No Claim Bonus (NCB) is the benefit accrued to an insured for not making any claims during the previous policy period. Private car package policy: this covers loss/ damage to the vehicle insured (own. By definition A 3rd party insurance policy a kind of policy, on which an insurance company agrees to indemnify the insured person, if the insured legally held. 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 loss/.