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.

What is 3rd party insurance. Third-party liability insurance TPL is an important form of protection found in your automobile policy. While costs differ from company to company the cost of repairs is normally fully covered minus your excess. To have clarity of understanding article 1010 of the Proclamation defines Third Party as any person other than the insured persons family the driver or any person employed on a vehicle to which an insurance policy applies at the time when an accident occurred giving liability under such insurance policy.

When you take out an insurance policy youre forming a legal relationship with your insurance provider. Third party insurance meaning. Premium is fixed by the IRDA and is constant across the insurance companies.

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. TP premium depends on the Cubic Capacity. 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 comes bundled into standard homeowners renters and many business policies and is required as part of. Third-party insurance pays the charges when someone makes a claim against you or your car insurance company. Licensed by the IRDAI TPA is a body that handles claim process for health insurance plans.

Third party insurance protects customers against financial ruin from potential claims for injuries or damages they may cause to another person. 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. The own damage covers the loss or damage to the car due to insured perils while the third party covers the death of third party.

It covers the victims property and any medical costs due to injury. Third-party liability insurance protects you when youre at fault in a motor vehicle accident. A 3rd party car insurance policy is a legal requirement for driving a car in India on public roads.