Motor Third-Party Liability

Motor third-party liability is a driver’s obligation to compensate for damage caused to other people while using a car.

Put very simply:

• if you hit someone else’s car, damage appears;
• if a person is injured because of your fault, that is also damage;
• if you damage someone else’s fence, shop window, barrier, or other property, that is your responsibility too.

So this is not about your own car. It is about harm you may cause to other people.

How it works

The logic behind motor third-party liability is very practical. No one on the road is fully protected from mistakes. But if a mistake has already happened, the injured side should have a clear way to receive compensation.

Usually, it works like this:

1. A road accident or another traffic-related event happens.
2. The party at fault is identified.
3. If the at-fault driver caused damage to another person, motor third-party liability arises.
4. Compensation to the injured party is paid within the terms of mandatory liability insurance.

In simple words, the system exists so that after an accident the issue is not solved by “go find the money yourself,” but under rules that were set in advance.

What this liability usually covers

Motor third-party liability is usually connected with harm caused to:

• another person’s car;
• other property;
• people’s health;
• people’s life.

This is an important point: if your own car was damaged, motor third-party liability by itself does not solve that problem. It works in favor of the injured party, not the at-fault driver.

Important terms in simple words

Injured party — the person who suffered damage.
This is the person whose car, property, health, or life was harmed because of the incident.

Driver at fault — the driver whose actions led to the accident.
This is the person who becomes responsible for compensating the damage.

Insured event — an event that gives the injured party the right to insurance compensation.
If the case falls within the policy terms, the claim settlement process begins.

Liability limit — the maximum amount within which insurance protection works.
If the damage is higher than this limit, the remaining part may have to be paid by the at-fault driver.

How motor third-party liability differs from KASKO

This is one of the most common questions.

• Motor third-party liability is about damage you caused to other people.
• KASKO is about protecting your own car.

For example, if you crash into another vehicle because of your own fault, motor third-party liability helps compensate the loss of the injured party. But it does not pay for repairs to your own car. For that, a different type of insurance is needed, such as KASKO.

Why drivers need it

Many people think of motor third-party liability as a formality until they imagine an ordinary real-life situation.

You get distracted for a second in traffic, misjudge the distance, and hit an expensive car. Or you damage another car in a parking area. Or because of an accident, a passenger or a pedestrian is injured. In all such cases, the financial loss may be very painful.

That is why this system is needed for two things at once:

• so the injured person can receive compensation;
• so the at-fault driver is not left alone with major financial obligations.

When this concerns you personally

Motor third-party liability concerns almost every person who drives a car.

It is especially important if:

• you often drive in the city;
• you spend time in dense traffic;
• you have limited driving experience;
• you carry passengers, family, or colleagues;
• you understand that even a small driving mistake can become expensive.

Simply put, this is not a story “for someone else.” It concerns almost every driver.

Case example

Let us imagine a situation. Aziz from Tashkent was driving home in the evening and failed to brake in time at an intersection. As a result, he crashed into the car that had stopped in front of him. The other vehicle had damage to the rear bumper, trunk lid, and rear light. The total loss was estimated at 18 million soums.

What happens next:

• it is established that Aziz was at fault in the accident;
• the injured party receives the right to compensation;
• the damage is considered within motor third-party liability insurance;
• the payment is made to the injured party within the policy terms.

The result is very clear: without such a system, the injured person would have to separately seek money from the driver at fault, while the at-fault driver would need to urgently find a large amount of money. Motor third-party liability makes this process clearer and safer for both sides.