Quick Answer: What Is Compulsory Third Party Insurance Claims?

Is it compulsory to have third party insurance?

Many car owners want to know, “Is third party car insurance compulsory?”” As per the Motor Vehicles Act, 1988 anybody who owns buys or drives a vehicle must purchase such type of insurance coverage..

Why insurance against third party is necessary?

Mandatory by law, Third party cover protects you against the legal liability of accidents. It also covers damage caused to any surrounding property. The compulsory nature of third party insurance is justifiable as it makes the process easier for the injured person to recover money from the insured/Insurer.

What are the 4 types of car insurance?

Six common car insurance coverage options are: auto liability coverage, uninsured and underinsured motorist coverage, comprehensive coverage, collision coverage, medical payments coverage and personal injury protection. Depending on where you live, some of these coverages are mandatory and some are optional.

How do I make a third party insurance claim?

To make a claim, get a form from your insurer or write to the other driver or their insurer, giving details of the accident and the other driver’s policy number. Tell your insurer about any independent witnesses and send them witness statements if you can.

Does Rego cover third party insurance?

In legal-speak, the Compulsory Third Party (CTP) insurance which is part of every WA motor vehicle registration covers unlimited liability for personal injury caused by, through or in connection with directly driving the insured motor vehicle in incidents to which the Motor Vehicle (Third Party Insurance) Act 1943 …

What are the 3 types of car insurance?

Here are a few of the basic car insurance types, how they work and what they cover.Liability coverage. … Collision insurance. … Comprehensive insurance. … Uninsured motorist insurance. … Underinsured motorist insurance. … Medical payments coverage. … Personal injury protection insurance. … Gap insurance.More items…

What are the disadvantages of third party insurance?

Cons of Third Party Insurance If you are responsible for the accident, then you are responsible for paying for all the repairs as well. The next disadvantage is that in the case of theft of your vehicle or damage due to fire, your third party policy would not be of any help.

What is 1st 2nd and 3rd party insurance?

The first party is the insured individual. The second party is the insurance company. The third party is another individual. Therefore, a third-party insurance claim is made by someone who is not the policyholder or the insurance company. The most common type of third-party insurance claim is a liability claim.

How third party insurance works in an accident?

Third-party insurance offers protection against damages to the third-party by the insured vehicle. It covers physical injuries, damages to the vehicle, damage to the property, and death. Third-party insurance does not provide any compensation, if: The accident was caused due to drunken driving.

What does compulsory 3rd party cover?

What is Compulsory Third Party Insurance (CTP)? CTP insurance covers compensation payments for people injured or killed in a motor vehicle accident. It doesn’t cover the cost of damaged vehicles and property, or damage to – or loss of – your vehicle.

What is covered by third party insurance?

Third-party insurance covers an individual or firm against a loss caused by some third-party. An example is automobile insurance that will indemnify the insured if another driver causes damage to the insured’s car. The two main categories of third-party insurance are liability coverage and property damage coverage.

Do I need both comprehensive and third party insurance?

First off, all car owners need Compulsory Third Party (CTP) insurance – it’s a legal requirement. … While CTP covers personal injury claims arising from an accident you’ve caused, it doesn’t cover the cost of damage to your or anyone else’s car or property. That’s where Comprehensive and Third Party insurance come in.

What is not covered by car insurance?

Repairs that result from regular wear and tear are not covered by car insurance. Other damage inflicted with malicious intent or during an accident is covered. Other people who drive the car. Only the people named in the car insurance policy – the insured — are covered.

What is the best type of car insurance?

If you’re looking for the greatest level of cover from your car insurance policy, you should consider fully comprehensive car insurance. This includes cover for damage to your own vehicle as well as any damage suffered by others from a range of causes, including accident, fire and theft.

What is third party insurance with example?

Third-party motor insurance covers you against: Death or bodily injury to a third party. Accidental death of a third-party. Damage to third party property.