What Does Motorcycle Third-Party Insurance Mean?
1 Answers
Third-party commercial liability insurance refers to the financial responsibility that the insured or their legally permitted driver must bear for accidental incidents occurring while using the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party. The insurance company is responsible for compensation. Additional details are as follows: 1. Third-party liability insurance: Since the introduction of compulsory traffic insurance (CTPL), third-party liability insurance has become a non-mandatory insurance that can serve as a supplement to CTPL. In an insurance contract, the insurer is the first party, also known as the first party; the insured or the person causing harm is the second party, also known as the second party; and the victim who suffers bodily injury or property damage due to an accident involving the insured vehicle, other than the insurer and the insured, is the third party. 2. Third-party commercial liability insurance: Also known as third-party liability insurance, most local governments previously classified it as compulsory insurance. Without this insurance, motor vehicles could not be registered or undergo annual inspections. After the introduction of Compulsory Traffic Insurance (CTPL), third-party liability insurance became non-mandatory. Since CTPL provides relatively low compensation for third-party property losses and medical expenses, purchasing third-party liability insurance as a supplement to CTPL may be considered.
