Insurance is a means to protect yourself and your family from the un-expectancy of life. Nowadays, insurance is not only limited to the people but possessions of all sorts also get coverage under different insurance plans. If you want to protect your car then the auto insurance is there, if you want to protect your home then home insurance or property insurance is there to protect your property. But the issue is that life is very uncertain; accidents can happen anywhere and at any time.
What if you hit another car while driving on a busy road and accidently harm the people sitting in that car? How are you going to bear the medical expenses of those people? How are you going to bear the legal expenses of the claim filed by those injured in the accident? Third party insurance is an easy solution to all such problems.
What is third party insurance?
Third party insurance is an easy and reliable way to protect you from the claims filed by the other party. If you have harmed another party, deliberately or unintentionally, then that party is definitely going to take an action against you. In such a case, you need to get some sort of protection in order to bear the legal costs or all other sorts of costs that are going to occur during the whole procedure. When you purchase third-party insurance from an insurance company, you become the first party while that insurance company is going to become the second party. Third party will be claimed as those people who can take action against you in the case of any sudden accident or harmful incident.
Coverage offered by third party insurance plans:
Third party insurance plan offers coverage in certain scenarios:
- This sort of insurance plan is very helpful in road accidents due to fact that hundreds of car accidents happen each day and insurance companies remain very busy clearing claims of their clients. If you are covered under third party insurance then after the accident when you will file the claim to receive the car damages, you will be treated as first party. The other party involved in the accident will be treated as third party and your insurance company would be treated as second party. When the third party is at fault then you have to claim damages from their insurance company which is a very hectic and time-taking job.
- If you are living as a tenant in any rental home then third party insurance is also going to protect you in case of damage to your goods, or any sudden injury sustained by any person in your rental home. If anybody gets injured in your rental home and files claim for medical bills then third party insurance is going to take care of all sorts of medical charges of that injured person.
- Another use of third party insurance is seen in business organizations where the owners of business organizations gain this type of plan to protect themselves from the legal actions of third party in case any business strategy goes wrong.
If your situation falls into any of the above mentioned scenarios then third party insurance plan is definitely a good investment for you.