Third Party Car Insurance covers damage to other peoples vehicle or property.

What is third party car insurance definition. Motor third-party insurance or third-party liability cover which is sometimes also referred to as the act only cover is a statutory requirement under the Motor Vehicles Act. This kind of policy helps protect other people vehicles and property in the event of an accident that was deemed to be your fault. 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.

Third party car insurance can be defined as liability insurance that is designed to provide protection to other motorists and property owners for the damage you cause. The term third-party car insurance refers to the coverage that kicks in if you cause damage to another person their vehicle or other property not owned by you. Third party liability coverage is a part of the insurance policy that addresses issues when you as a driver either damage somebodys property or cause somebodys injuries or death and have to deal with legal responsibility.

So this is usually the other driver involved in an accident. A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads. It is referred to as a third-party cover since the beneficiary of the policy is someone other than the two parties involved in the contract the car owner and the insurance company.

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 a motor insurance contract that ensures protection of the vehicle owner against any unforeseen accidental liabilities arising out of third party vehicle damages property damages bodily injuries disability and death. Most insurance contracts only involved the insured the first party the insurance company and the second party.

Third party insurance meaning. Why Have Car Insurance. What Does Third Party Insurance Mean.

Third party liability coverage is mandatory in Canada and its minimum is 200000. Comprehensive Car Insurance covers all your bases including damages to your own vehicle or property plus you can access the AAMI Safe Driver Rewards program. According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred.