What does third-party liability insurance mean?
1 Answers
Third-party commercial liability insurance refers to the financial responsibility that the insured or their legally permitted drivers must bear for accidental incidents occurring during the use of the insured vehicle, which cause personal 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, third-party liability insurance has become a non-mandatory insurance that can serve as a supplement to compulsory traffic insurance. In an insurance contract, the insurer is the first party, also known as the first party; the insured or the person causing the harm is the second party, also known as the second party; apart from the insurer and the insured, the victim who suffers personal injury or property loss due to an accident involving the insured vehicle is the third party, also known as the third party. 2. Third-party commercial liability insurance: Also known as third-party liability insurance, most local governments previously listed it as a compulsory insurance. Without purchasing this insurance, motor vehicles could not be registered or undergo annual inspections. After the introduction of compulsory motor vehicle traffic insurance (referred to as compulsory traffic insurance), third-party liability insurance has become a non-mandatory insurance. Because compulsory traffic insurance provides relatively low compensation for third-party property losses and medical expenses, purchasing third-party liability insurance can be considered as a supplement to compulsory traffic insurance.
