Third party insurance is an insurance policy that covers property damage caused by someone who isnt the insured.

What does 3rd party insurance mean. Even if you do everything you can to prevent damage or injury they still happen. Third-party health insurance is defined as insurance coverage in which a third party namely the insurance company pays the actual provider of healthcare services for services rendered to the employee. 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.

The second party is the insurance company. 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 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.

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. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or property will. 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 insurance meaning. Most insurance contracts only involved the insured the first party the insurance company and the second party. 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.

Or driver conductor labourers etc employed by vehicle owner is placed on Owner of the Vehicle whilst the vehicle is being used in Public place. 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. Unfortunately accidents often result in legal proceedings and lawsuits.

In this relationship youre the first party and the insurer is the second party. A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads. When you take out an insurance policy youre forming a legal relationship with your insurance provider.