Motor third party insurance was introduced by the motor vehicle insurance (third Party risk) Act in 1989. The Act provides for compulsory insurance against third party bodily risks in respect of the use of motor cycles/vehicles. It is mandatory that any motor cycle for private or commercial use should have motor third party insurance cover. The law only exempts government owned vehicles.

The person who benefits from motor third party is a third party who suffers loss or death or bodily injury as a result of an accident. This may be any road user, such as a pedestrian, motor vehicle passenger, a property owner involved in an accident. The first party is the owner of the motor cycle where as we the insurance company SWICO is the second party.

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