31 January

3rd Party Motor Insurance

Category: Moter insurance

With so many lucrative deals on offer one is often confused among which insurer to buy from, what insurance to buy and this, Comprehensive Motor Vehicle insurance plan along with 3rd party insurance plan. While the comprehensive plan covers damages to your vehicle, 3rd party insurance covers your costs when you are at fault and according to Motor Vehicles act, both are mandatory. 

How does it work?

Let’s get to basic terminologies:

1st Party: The insured/you.

2nd Party: The insurer/policy company.

3rd Party: The claimant of 1st party’s fault.

In an event where an insured person with a third party insurance policy is held legally liable for injuries or damage done to a third party, then his/her insurance company indemnifies the insured person.

One should immediately inform the company in case such accidents happen as claims will certainly  be made if they feel that you were at fault.