Guide on How Third-Party Insurance Cover Works
The first step in understanding how a third-party insurance cover works are to make a note of the terminologies used. Some of the commonly used term associated with third-party cover includes:
First party: Policyholder or person who has purchased an insurance policy.
Second-party: Insurer or insurance company.
Third-party: Claimant or person who raises a claim for damages caused by the first party.
If the policyholder is involved in an accident with a third-party, then the policyholder is liable to pay for damages or injuries caused. When an accident takes place, the policyholder must inform the insurance company at the earliest and apprise them of the situation.
Also, it is essential that information is gathered regarding the accident and provided to the insurer with the following details:
Description of an accident along with date and time.
Details of insurance and policyholders present during the accident.
Describe injuries sustained by driver, passengers, and/or to property or vehicle damaged.
Details of witnesses.
Weather and visibility condition at the time of the accident.
Photographs of evidence collected from the accident site.
In case the police enquire, furnish details of the insurance company and make a note of the First Information Report (FIR) number, if applicable. Additionally, if the accident was not due to the policyholder, then the claimant can raise a claim for the cost of hiring a motor vehicle, repair costs, and injury compensation as per the conditions stated in the insurance policy document.