It is also referred to as liability-only or act-only policy. 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.
What is limited 3rd party?
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 are two types of third party coverage?
The two main categories of third-party insurance are liability coverage and property damage coverage.
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.