What is Third-party Insurance?

 

Third-party insurance, also known as act-only insurance, offers the policyholder financial protection against damages or injuries that may be caused to the third party by the policyholder in case of an accident. When the policyholder makes a claim on their insurance policy, the insurance company sends over a professional to look at the damage caused and estimate the cost needed for the repairs. In a third-party insurance policy, the insurance company offers coverage for the damages caused in an accident by the insured to the third party and not the insured person. 

Here is a list of what is included in your third party insurance policy:

  1. The physical injury occurred during an accident
  2. Damages to the vehicle
  3. Any damage to property caused during an accident 
  4. Accidents resulting in loss of life

A list of what is not included in third party insurance:

  1. Any accident that was caused by driving under the influence 
  2. If the driver is underage and is found guilty of driving without a valid driver’s license 
  3. Any accident that was a deliberate act
  4. If your personal vehicle was used for commercial purposes or illegal activities 
  5. Theft of the policyholder’s vehicle 

The above-mentioned inclusions/exclusions may not be the same for all insurance providers.

Some of the features of third party insurance are as follows:

  1. A notable feature of this policy is that since it is a basic car or bike insurance policy it has an affordable premium
  2. This insurance policy provides protection against legal liability to a third party 
  3. Compensation for injury, loss of life, etc. are offered to the third party
  4. It provides a basic level of protection to policyholders
  5. Under this policy, no financial protection is offered to the policyholder’s vehicle.

To avoid penalties and follow the guidelines set by the law you can opt for a basic third-party insurance policy for your vehicle. In case an accident has occurred then the policyholders must inform the insurance company of the accident as soon as possible. The policyholder should gather all the necessary information regarding the accident and provide the details to the insurance company.  

Details should include:

  1. Date, time, and description of the accident that has occurred
  2. Injuries sustained by the driver or passenger or of the damaged vehicle 
  3. Details of the witnesses present during the accident 
  4. Photographic evidence collected from the accident site
  5. Insurance details and policyholders that were there during the accident 

Purchasing insurance policies has become very convenient nowadays; people can simply buy or renew their car insurance policies online by visiting the websites of the insurance providers. It is important to read the fine print of your insurance document to make sure you follow the guidelines set by the insurance company. You must abide by the rules set by the insurance provider in order to claim compensation for the damages that you may cause.  






Original Content :- What is Third-party Insurance?


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