A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will.

What does 3rd party insurance mean. Most insurance contracts only involved the insured the first party the insurance company and the second party. Third-party liability insurance TPL is an important form of protection found in your automobile policy. Besides third party insurance car insurance also provides comprehensive insurance to your car.

The coverage is specifically meant for the insured driver andor owner of the vehicle. Third-party insurance is the most versatile and comprehensive option for health insurance. Third Party Insurance covers Statutory Unlimited Liability for causing death or disability or bodily injury to any third party including some other users specially mentioned in statute like owner og goods being transported in vehicle.

As the name suggests this will only protect you from damages and losses caused to a third-party and wont cover for your own damages. If youre not going for a comprehensive car insurance policy a third-party car insurance is the most basic and legal form of car insurance policy you will need. The second party is the insurance company.

Definition of Third Party Insurance. The term third party refers to a person involved with a car insurance claim who is not you the holder of the policy or the driver. When you take out an insurance policy youre forming a legal relationship with your insurance provider.

Basically third-party insurance is liability coverage thats purchased by a consumer first party from an insurance company second party to protect against claims from other people third party for injuries or damage the first party causes. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement. Benefits of Buying a Third-Party Car Insurance.

We already mentioned that third-party liability insurance coverage provides you with the finances needed to pay other parties that sue you for causing an accident. This policy safeguards the interests of those who might be injured or whose property might be damaged because of an accident involving the insured vehicle. Thus a third party car insurance is a legal contract between the first party and the second party where the latter promises to pay for any legal liabilities of the former arising out of third party injuries or damages in return for a premium price.