Third-party insurance is a type of insurance that pays money to people who are hurt or whose property is damaged as a result of something you have done.

What does third party insurance mean. Third-party only insurance TPO offers you the legal minimum level of car insurance cover and is the most basic youre able to get. 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. Unfortunately accidents often result in legal proceedings and lawsuits.

What does third party liability mean. 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. Third-party liability insurance TPL is an important form of protection found in your automobile policy.

Third party insurance is the minimum level of cover required to drive in Ireland and means that in the result of an incident any damage to a third party is covered but damage to your own car is not. In this relationship youre the first party and the insurer is the second party. Third-party insurance is the most versatile and comprehensive option for health insurance.

Definition of Third Party Insurance. In a third-party insurance claim there are three parties. The second party is the insurance company.

When you take out an insurance policy youre forming a legal relationship with your insurance provider. Besides third party insurance car insurance also provides comprehensive insurance to your car. The first party is the insured individual.

Click to see full answer. If another person the third party damages the insureds property a regular insurance contract wouldnt cover the claim and would tell the insured to sue the. You might not think of yourself as the adventurous type but the fact is that we all take risks every day no matter whether were just making toast driving to work or getting out of bed in the morning.