This is nothing but a form of liability insurance, purchased by the insured, for cover/protection against claims of another party called the third party. The second party is the insurer.
Third Party Insurance covers bodily injury and accidental death caused by the policyholder. It also covers property damage caused by the policyholder. You are not covered for own damages suffered by your vehicle in an accident.
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As the name suggests, comprehensive insurance is a comprehensive plan. It covers damage to your car/vehicle, third party liability cover, theft of the vehicle and personal accident cover. You can also boost comprehensive cover with additional riders.
A third party motor insurance plan helps you remain stress-free, while dealing with a traumatic situation like an accident.
The third-party insurance policy is extremely cost-effective and beneficial, as premiums are low. If your vehicle injures a person, destroys/damages property or the person passes away in the accident, the insurer compensates the loss.
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Listed below are the benefits of comprehensive insurance coverage:
Third party motor insurance covers you against:
The insurer offers compensation to the injured party or pays for the damages suffered by the third party.
Comprehensive insurance protects against:
There are some major differences between the kind of insurance cover offered by comprehensive insurance and third party insurance plans. A comprehensive insurance cover provides overall coverage whereas a third-party insurance cover provides limited coverage by offering protection only against the claims of a third party. The comparison between the two insurance covers depends on several factors. They are as follows:
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