Due to your car.

Third party vehicle insurance meaning. 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 refers to a person involved with a car insurance claim who is not you the holder of the policy or the driver. It covers your legal liability for the damage caused by you to a third party like bodily injury death or.

According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred. Definition of Third Party Insurance. 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.

Third-party liability insurance is mandatory coverage for all drivers in Canada. Insurance Car insurance Home insurance. This insurance pays for the injuries of the occupants of the other vehicle the cost of repairing it as well as damages caused when you are determined to be the at-fault driver.

Third-party means it didnt happen to you but to someone else. Availing Third-party Car Insurance is mandatory as per The Motor Vehicles Act 1988. The main purpose of a Third-Party car insurance is to cover you from losses and damages caused to a third-party due to your own car.

Third-party liability coverage is the portion of an insurance policy that protects you if youre sued or threatened to be sued for a physical injury or damage to someone elses property. February 15 2018 Updated on. This insurance will not cover you or your vehicle.

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. 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. It offers protection for drivers if theyre at fault in an accident and the other party is hurt or even killed.