How does car third party insurance work?
In order to better understand the concept of third party insurance, let us look at some terminologies. For example, in the event of a car accident, the parties involved are as follows:
- First party: The insured person or policy holder
- Second party: The insurance company
- Third party: The person who claims for the damages caused by the first party
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.
With a Reliance general third party only car insurance policy, you will get the following benefits:
- Cover for causing accidental injury or death to the third party
- Cover for accidental damage to the third party's property
In the event of a car accident, an insured person with a third party insurance policy is required to immediately inform the insurance company of the incident. If you were responsible for the accident (or the other driver believes you were responsible), it's almost certain that a claim will be made against you, which your insurance company will be expected to pay. So, it is of utmost importance that your insurance provider is aware about any accident you are involved in.