Types of Insurance

Third Party Insurance:
Based on Today’s life style the list of types of insurance is increasing day by day.You will find a lot many numbers of new insurance policies which you might have not heard before.One of the most important and compulsory insurance for vehichle owners is:Third Party Insurance.

 

The main types of insurance policies available in the market are:

• Auto Insurance
• Credit Insurance
• Health Insurance
• Insurance at Amusement Points
• Life Insurance
• Property Insurance
• Travel Insurance
• Third Party Insurance

Insurance Types

Auto Insurance:
Any financial loss due to accident of a vehicle is covered under the auto insurance policy.Sometimes the expenses on the medicines for treating injuries and all other medical expenditure are also covered under this policy.

Credit Insurance:
This type of insurance pays the loans of the policy holder in case of any accident of the policy holder or job loss or death.

Health Insurance:
Health Insurance consists of a package of various types of insurance related to health.
For example Medical Insurance is one the major part of health insurance however in most of the cases, dental issues are not covered in this policy so there is another Dental Insurance policy which covers dental problems and is also a part of health insurance.The subcategory of health insurance also involves the injuries or accident at workplace insurance benefits.

Insurance at Amusement Points:
This is a one of the new kinds of insurance policy (not very popular in India) where in you are insured against the equipments that you are using at the amusement joints.
For example:if you are using boats for an independent boat ride , then they will charge you with some extra money for an property loss(say $5) and in case of any property damage you will not be liable to pay any amount required to repair the damaged property.

Life Insurance:
In this policy, the insurance company pays in case of the demise of the policy holder or at the time of the maturity of the policy.Now a days a new policy has been launched by LIC in which you will be covered under the insurance policy even after the maturity of the policy.

Property Insurance:
This insurance helps you to prevent the losses against theft, fire, burglary or any natural calamity like Earthquake, Floods etc.
Based on the points mentioned in the policy.

Travel Insurance:
Loss of personal belongings while traveling, medical coverage, delays in the travel are all part of the travel insurance policy.

Third Party Insurance:
This type of insurance covers damages caused by you (first party) to others (third party).
Apart from these above mentioned insurance policies there are many other types of insurance policies in the market (and the list keeps on increasing) that are more or less related to these policies however providing benefits to the policy holders in a different and unique way.

Insurance of Third Party

What Is Third Party Insurance?
Generally, in damages recovery system there are two different kinds of insurance.One is the first party insurance and the other is called the third Party liability insurance by the insurance companies.Usually in a third party insurance policy the insurance company will indemnify the injured person if he or she is legally held liable for injuries or damages done to third party.The first party is the insured person, the second party is the insurance company and the third party is the injured person who claims damages against the insured person.

Some Important Features Insurance Of Third Party

• Third party insurance is compulsory for all motor vehicles and it plays a significant role in motor insurance.
• In third party insurance the insured person will not have any compensation for injuries but it covers damages to other people who are injured by the insured.
• The main beneficiary in third party insurance is the injured third party and the insured is only the beneficiary of the policy.Here the insurance company pays directly to the injured third party.
• As it is not possible to know in advance the liabilities, in third party policies the premiums do not vary with the value of what is being insured because the insured sum is the legal liability.
• Third party insurance is almost based on fault done by the insured. You have to claim for damages by providing evidence that the insured person had made fault and is legally responsible for the damages.
• Third party insurance involves the aid of lawyers.
• Usually the third party insurance is not that popular as compared to first party insurance in the whole insurance company because you can never know the maximum amount to pay under third party policies.

Third Party Insurance and Other Insurance
Third party offers certain coverage including protection against fire and theft to policyholders.According to the law you have to compensate the damages if are guilty of accidents that occurs on roads.The law supports that you must have at least third party insurance policies to protect yourself from other people’s claim against you.Third party insurance can save your money without being spent from your pocket.If you are a third party policy holder then the insurance company will compensate for all the damages you have done.Other than accidents third party insurance also has policies that covers fire and theft risk.Suppose if your car catches fire or is stolen then the insurance company will offer disbursement to pay for the car.

As compared to other insurance, third party insurance may not have comprehensive coverage but it is most required when it comes to motor vehicles and road accidents.Most of the car insurance companies often do not have coverage on mechanical and electrical damages.Car insurance also does not have coverage on wear and tear.But however third party insurance has certain policies that cover all these risks.So if you really want to protect your vehicle and save your hard earned money then a third party insurance is most essential and is a must for all vehicle owners.