The main thing you get with Third Party Property Damage Insurance is liability cover.

What is third party property insurance definition. A liability claim is the most common form of a third-party insurance claim. When you take out an insurance policy youre forming a legal relationship with your insurance provider. Third party insurance meaning.

Third-party liability insurance TPL is an important form of protection found in your automobile policy. 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. Most insurance contracts only involved the insured the first party the insurance company and the second party.

Unfortunately accidents often result in legal proceedings and lawsuits. Once you have custody and control you assume the responsibility for any damage. What is third-party insurance.

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 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. Its a basic level of cover all our car insurance policies come with liability cover up to 20 million.

Third party liability coverage is a part of the insurance policy that addresses issues when you as a driver either damage somebodys property or cause somebodys injuries or death and have to deal with legal responsibility. Third-party insurance comes bundled into standard homeowners renters and many business policies and is. Definition of Third Party Insurance.

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. The majority of crime insurance policies cover not only criminal or dishonest conduct of the policyholders employees but dishonest and criminal conduct of third parties as well. Therefore a third-party insurance claim is made by someone who is not the policyholder or the insurance company.