Insuranace

This query is : Resolved

Report Abuse Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

14 October 2013 1.what is first party?second party?Third party?

2.Insurance important points?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

14 October 2013 FIRST PARTY AND SECOND PARTY
A first party is the insured person or the person who buys the policy and the second party is the insurance company who agrees to compensate the third party in case the insured person causes any damage to the third person. The insured person pays a premium to the insurance company who agrees to compensate the third party up to the sum insured.

However, in case the damage leads to the death of the third party, the insurance company may need to stretch its sum insured limit.

THIRD PARTY
-----------
The dictionary defines third party as a generic term for any individual who does not have a direct connection or a stake with a transaction, but who may be affected by the transaction.
Third party insurance is a cover for this third party. Known as third party liability cover, it compensates for any damages made to a third party by the first party or the insured person.

more info:

https://www.reliancegeneral.co.in/insurance/health-info/Important-Points-to-consider-before-buying-a-health-policy.aspx

http://businesstoday.intoday.in/story/why-accurate-disclosures-are-must-for-insurance-policies/1/186559.html