What is third party insurance?
Third party insurance is the type of insurance cover where the insurer offers protection against the damage to the third party vehicle, physical injury and personal property. This policy do not provide any coverage to the insurer.
How does third party insurance work?
Example, if a policyholder meets with an accident, the insurer offers financial assistance for pay the cost of repairs to the third party insurance property. It reduces the financial burden for the policyholder who meets with accident.
After the claim is filled, the insurer appoints a surveyor to assess the damages and also verify the estimated cost of repairs. After the verification is completed then the insurer settles the claim.
Importance of third party insurance:
- Third party insurance allows the policyholder to comply with the legal obligation.
- It is a mandatory requirement by law.
- Third party insurance gives the policyholder peace of mind knowing that they have sufficient financial against the damage, they cause to other people in a accident.
- It secures the policyholders finance against the accidental risks.
The first step is very important to understand how a third-party insurance policy work. Third-party insurance is known by a variety of terms, including:
First party: Policyholder who has purchased an insurance policy.
Second-party: Insurance Company.
Third-party: Person who raises a claim for damages caused by the first party.
In case any accident happen and policyholder is involved in an accident with the third-party then policyholder is responsible to pay for any damage and injuries.
When an accident occurs, the policyholder must contact immediately the insurance provider as soon as possible to tell them of the situation.
It is also essential that information is gathered regarding the accident and provided to the insurer with the following details:
- Details of witnesses
- Description of accident
- Details of insurance and policyholder
- Describe injuries sustained by driver, passengers
- Weather and visibility condition at the time of accident
- Photographs of evidence of collected from the accident site.
Features of third party insurance:
- Third party insurance referred as a liability only or act only policy.
- It offers a basic level of protection to all the policyholders.
- It has an affordable premium.
- Third party insurance offers protection against the legal liability to a third party which may arise due to policyholders involvement in the accident.
- It doesn’t offers protection to the insured car itself.
The process to claim third party insurance:
- The insurance holder must inform the insurance company about the accident within the stipulated time.
- Then the policyholder must file an FIR and get a copy of the same.
- Fill the form, comply with the necessary documents requirements.
- By follow the claim file, the insurer send a surveyor to asses the damage.
- Then verify the estimated cost.
- The insurer settles the claim which based on the report.
Acceptation in third party insurance:
- Third-party insurance offers protection against damages to the third-party by the insured vehicle.
- It covers physical injuries and death.
- It cover damages to the vehicle, damage to the property.
Exception in third party insurance:
- If the accident was a deliberate act
- If the accident was caused due to drunken driving
- If vehicle was used for any commercial purposes or illegal activities
- If the vehicle gets stolen
So, you get all the information about third-party insurance protection against the any damage of vehicle. You also get how it works and what are the benefits of it and what include and exclude when you will claim.
Read more about life insurance policy and take a plan to protect your life.
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