Definition of Third Party Insurance.

What does third party insurance cover mean. Its important for business owners to think about third party liability insurance as it covers you for claims made by a member of the public against your business. Most insurance contracts only involved the insured the first party the insurance company and the second party. 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.

If unfortunately someone dies or gets disabled due to the accident caused by your car your motor insurer will pay compensation to the victims family on your behalf. Third party insurance protects customers against financial ruin from potential claims for injuries or damages they may cause to another person. Medical costs for anyone youve injured.

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. 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. 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 Vehicle Damage. 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. Third party liability coverage.

Your third-party liability covers the following. Repair costs for vehicles damaged in an accident caused by you. Third party car insurance is the minimum level of cover you can take out - it is a legal requirement.

As third party insurance only covers damage to a third party but not your own vehicle it tends to be the most affordable option when it comes to insurance. Third-party only is the lowest allowable level of car insurance you can get. The insured person is termed as first party the insurer or the insurance provider is termed as second party and the person who is.