So this is usually the other driver involved in an accident.

How does third party insurance work. 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 insurance covers you for the damage you cause property or physical to other drivers. A third-party car insurance policy will offer protection from legal liabilities that might arise in case of an accident.

Third-party liability car insurance prevents you from paying for the damage out-of-pocket and is the only type of car insurance thats mandatory across Canada. See how our customers save big on auto insurance. Also known as Liability-Only policy or Act-Only policy this type of four wheeler insurance provides coverage benefit only to third parties as a result of accidental.

Even if you do everything you can to prevent damage or injury they still happen. 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. 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.

In other words when you purchase this coverage its designed to protect you financially if someone files a claim against you. 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. You have been involved in a car accident in which the other driver has been at fault.

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. Third party liability coverage is part of your basic motor policy and covers you for claims made against you by other drivers after a crash. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will.

The first party is responsible for their damages or. It will pay for the medical coverage of the passengers and drivers of vehicles you damage as well as the cost of the repairs to the vehicle you damaged. It provides coverage for bodily injurydeath of a third party as decided by a court of law as well as third party property damage up to Rs.