Insurance is a common word. But, what is third party insurance? Do you know about third party insurance? So, here we will get to know What is third party insurance? Some common points in Third Party Insurance as well as what is third party car insurance? what is third party insurance health? What is third party liability insurance? And What is Covered Under the Third Party Insurance? And What is Not Covered Under the Third Party Insurance? With some of the Benefits of third party insurance. So, let us start with understanding What is third party insurance? Here in this article.
What Is Third Party Insurance?
The Third party insurance policy is a type of insurance policy that is issued or purchased for the purpose of protection against the claims of another. So, the Third party insurance policy is a common type of insurance policy offering protection against damage to the third-party and does not cover up for your own damages. This is also sometimes referred to as ‘act only insurance. This insurance or third party insurance policy is a statutory requirement under the Motor Vehicles Act.
Here, the beneficiary of the insurance is the third party involved in an accident other than the 2 concerned parties. The policy here also does not provide any insurance to the insured. Although, the insurer is covered in case of damages.
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So, it is a type of insurance policy that covers only third party liabilities of the insured, providing financial protection against damages that are done to the third party.
Some Common Points In Third Party Insurance
- ü A basic level of protection is offered in the third party insurance to all the policyholders.
- The third party insurance policy is also known as liability only or act only insurance policy.
- ü An affordable amount of premium is offered in this Third Party Insurance policy.
- ü It is a mandatory requirement by law to do third party insurance
Parties involved in the insurance includes; parties as follows:
- First party: The First party has the Policyholder or the person who purchases an insurance policy.
- Second party: The Second party consists of the Insurer or the insurance company.
- Third party: The Third party consists of the Claimant or the person who has raised a claim for damages caused by the first party.
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What Is Third Party Car Insurance?
The third party car insurance is a type of car insurance policy or says motor insurance policy that is financially protecting the owner of the car in case of third party legal liabilities which involve an accident. So, the Third party car insurance policy is a common type of motor or say car insurance policy offering protection against damage to the third-party and does not cover up for your own damages.
So, it is a type of car insurance policy that covers only third party liabilities of the insured, providing financial protection against damages that are done to the third party.
What Is Third Party Insurance Health?
The third party health insurance is a type of health insurance policy that is financially protecting the owner of the health. So, the Third party health insurance policy is a common type of health insurance policy offering protection against damage to the third-party by paying for the health services.
So, it is a type of health insurance policy that covers only third party liabilities of the insured, providing financial protection by paying the actual provider of healthcare services.
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What Is Third Party liability Insurance?
The third party liability insurance offers financial protection against the damages done by the third party to the insured person. So, it is a type of insurance policy that covers only third party liabilities of the insured, providing financial protection against damages that are done to the third party.
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What Is Covered Under The Third Party Insurance?
Coverage against the following risks are provided in the Third Party Insurance as follows:
- Property Damages
- Accidental Bodily Injuries
- Car Damages
- Accidental Death
- Personal Accident Cover
What Is Covered Under The Third Party Car Insurance?
Coverage against the following risks are provided in the Third Party Car Insurance as follows:
- Third Party Bodily Injury/ Death
- Third Party Property Damages
- Personal Accident Cover
What Is Not Covered Under The Third Party Insurance?
Coverage against the following risks are not provided in the Third Party Insurance as follows:
- Own Damages
- Drunk Driving
- Invalid License
- Outer Geographical Limit
- In case of any illegal activities
Benefits Of Third Party Insurance
Some of the common benefits of third party insurance are as follows:
- Legally mandatory: it is mandatory by law to take third party insurance and cover up for the third party damages.
- Third party legal liabilities are covered: The third party legal liabilities are covered as protection is provided against damages, further, it also provides compensation to the third party in case of injury or death.
- Affordable amount of premium: An affordable amount of premium is offered in this third party insurance policy.
FAQ
What Do You Mean By Third Party Insurance?
The Third party insurance policy is a type of insurance policy that is issued or purchased for the purpose of protection against the claims of another. So, the Third party insurance policy is a common type of insurance policy offering protection against damage to the third-party and does not cover up for your own damages. This is also sometimes referred to as ‘act only insurance. So, it is a type of insurance policy that covers only third party liabilities of the insured, providing financial protection against damages that are done to the third party.
What Are The Benefits Of Third Party Insurance?
Some of the common benefits of third party insurance are as follows:
- Legally mandatory: it is mandatory by law to take third party insurance and cover up for the third party damages.
- Third party legal liabilities are covered: The third party legal liabilities are covered as protection is provided against damages, further, it also provides compensation to the third party in case of injury or death.
- Affordable amount of premium: An affordable amount of premium is offered in this third party insurance policy.
What Is The Difference Between First Party And Third Party Insurance?
Here, the parties involved in the insurance policy are as follows:
- First party: The First party has the Policyholder or the person who purchases an insurance policy.
- Second party: The Second party consists of the Insurer or the insurance company.
- Third party: The Third party consists of the Claimant or the person who has raised a claim for damages caused by the first party.
So, the first party insurance involves only an individual insured whereas, the third party insurance offers a liability claim offered to third party for the damages.
What Does Third Party Only Mean?
The third party only means that the liability claim offered is only to a third party, where an individual or insurer is not covered.
What Are The Benefits Of Third Party Insurance?
The third party car insurance cover or liability cover is a policy which protects the car owner or driver of the vehicle against any legal liability, accidental liability, financial loss or property damage, medical expense cover in the event of an injury to or even death of any third party arising out of their vehicle.
Is Third Party Car Insurance Really Useful?
Third-party car insurance does not cover damages to your car. In this case, you are paying an insurance premium just to obey the law while your car remains uninsured when it comes to own damage. So, if your car meets with an accident, your insurance policy will not pay the repairing costs of your damaged vehicle.
Conclusion
By reading through the article we get to know What is third party insurance? Some common points in Third Party Insurance as well as what is third party car insurance? what is third party insurance health? What is third party liability insurance? And What is Covered Under the Third Party Insurance? And What is Not Covered Under the Third Party Insurance? With some of the Benefits of third party insurance. The Third party insurance policy is a type of insurance policy that is issued or purchased for the purpose of protection against the claims of another.
So, the Third party insurance policy is a common type of insurance policy offering protection against damage to the third-party and does not cover up for your own damages. This is also sometimes referred to as ‘act only insurance. So, it is a type of insurance policy that covers only third party liabilities of the insured, providing financial protection against damages that are done to the third party. Thus, here we have successfully understood What is third party insurance?
What is 3rd party insurance in Singapore
What is third-party insurance?