A third party is defined as a person or group apart from two others, who are primarily involved in a legal transaction, such as an individual and her insurer. This definition also extends beyond natural persons to juristic persons, such as businesses.
In case of an insurance claim, the third party may only claim against the responsible party and not directly against the insurer. The third party in such an instance is the person who has suffered a loss because of your actions and the one who lodges a claim against you.
If you are the third party involved in an accident, do not claim fault for the accident regardless of the circumstances and don’t sign any documents regarding fault. Call the police if someone is hurt.
Keep in mind that another person’s insurer has no obligations towards you, but only to their client. Third party insurance does not cover your loss if you have an accident.
In the event of third party insurance claims, you need to instruct an attorney to make a demand for payment of the full amount.
Third party insurers can have mountains of red tape to cut through before paying a claim, so be prepared to be interviewed or asked for a written statement of your story.
Third party insurance is generally cheaper than Comprehensive cover and Third Party, Fire and Theft car insurance. Getting this type of cover will provide you with a basic form of coverage but it does not provide any cover in the event of a fire or theft. You also need to consider how much it would cost to make a claim against the cost of replacing your vehicle or other property.
For effective third party insurance claims, you need to make sure that you follow your insurer’s claims procedure properly.
