 As sometimes the driver of the vehicle is often a person of small means and injured person goes without adequate compensation, insurance of motor vehicle covering the third party risk is made compulsory in India and the Motor Vehicles Act provides that, vehicle should not be used in public place without having insurance policy covering third party risks.Third party risk means risk covered for bodily injury, death and damage of property of third party.Third party means any person except owner or passenger in the private vehicle.