Unfortunately accidents often result in legal proceedings and lawsuits.

What is third party insurance means. Third party liability coverage. Under a third-party policy the insurer covers the liabilities in case the policyholder is responsible for any injury or loss to a third party. 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. A third party insurance claim is a claim made by someone other than the policyholder or the insurance provider. 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.

In such cases your third-party car insurance will cover for the losses incurred. According to the IBC in 2019 third-party liability claims payouts accounted for 466 of all direct claims incurred. ə ns insurance that will pay money to a person or group damaged in some way by the person or group who has this insurance SMART Vocabulary.

The insured person is termed as first party the insurer or the insurance provider is termed as second party and the person who is. When you take out an insurance policy youre forming a legal relationship with your insurance provider. A third-party car insurance plan provides coverage against any legal liability arising out of injuries to a third-party when the policyholder is at fault.

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. In this relationship youre the first party and the insurer is the second party. A third party car insurance policy ensures that if you cause an accident any damage to the other persons vehicle or.

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. It covers damages and injuries caused by the insured vehicle to a third-party person or property. Definition of Third Party Insurance.