It offers protection against the legal liability to a third party that may arise due to policyholder's involvement in the accident. It compensates for the personal injury, loss of life, and property damage to the third-party. A significant feature of this type of policy is that it has an affordable premium.
Which is better third party or comprehensive?
One major difference between third-party insurance and comprehensive insurance is the range of protection offered to you and your vehicle. While a comprehensive plan provides multiple protection covers for you and your vehicle, a third-party cover is limited to offering protection against the claims of a third party.
What is meant by a third party insurance?
A third-party claim is a claim filed by someone other than the policyholder or insurance company. If you're in a car accident that someone else causes, you can file a third-party claim with the other driver's insurance for your covered accident-related expenses.