09 May WHAT HAPPENS WITH MOTOR THIRD PARTY INSURANCE WHEN YOU BORROW YOUR VEHICLE?
Sometimes you borrow your car to a friend. If a car accident happens, it is important for you and your friend to be informed about the consequences.
MTPL insurance is related to the vehicle, not to the owner. It covers the damage caused by the driver in a traffic accident and non-material damage (bodily injury, death) suffered by a third person in a traffic accident.
In case when the police stop the vehicle, the driver is always responsible. He pays the penalty price, regardless of the ownership of the vehicle. But, in case when the vehicle has not been stopped by the police, but it is on radar, and your friend does not admit the offense, the penalty will be imposed on the owner of the vehicle.
If a traffic accident occurs, the driver is guilty of course, but if it is not possible to determine who is the perpetrator of the accident and also the driver at the moment, the penalty will be imposed on the vehicle owner.
Also, in case you borrow your car to a friend and he should cross the state border it is important for you to be insured and also the vehicle of potential problems. The driver must have a license, an international driver’s license, a passport, a green card and a mandatory power of attorney for driving a foreign motor vehicle.