What is the coverage of third-party liability insurance?
3 Answers
The coverage of third-party liability insurance includes: 1. In the event of an accident caused by the insured or their permitted driver while using the insured vehicle, resulting in bodily injury, death, or direct property damage to a third party, the insurer is responsible for compensating the economic liability that the insured is legally obligated to bear; 2. With the prior written consent of the insurer, if the insured causes harm to a third party and is subject to arbitration or litigation, the insurer is responsible for compensation. Third-party liability insurance refers to the insurer's responsibility to compensate for the economic liability that the insured or their permitted driver is legally obligated to bear in the event of an accident causing bodily injury, death, or direct property damage to a third party while using the insured vehicle.
Last week, my neighbor Lao Zhang's car accident served as a reminder: third-party liability insurance covers others but not yourself. For example, if you hit someone's electric bike while driving and the rider requires medical treatment costing 30,000 to 50,000 yuan, the insurance will cover it. If you knock over someone's fruit stall and the owner demands 2,000 yuan for the damaged fruits, the insurance can also reimburse that. What's most concerning is if you damage someone's gate, and the property management claims the broken gate led to theft and holds you responsible—such indirect losses are not covered by the insurance. Insurance companies strictly adhere to the policy terms and generally do not cover emotional distress compensation, nor do they pay for repairs to your own car if it's damaged. Remember, when buying insurance, always clarify the exclusions in the policy.
The most severe claim I've handled involved third-party liability coverage. The policyholder hit a pedestrian on the roadside, and the insurance had to cover all reasonable expenses for the injured party: ambulance transfer fees for emergency 120 services were reimbursable, surgical and hospitalization invoices needed to be kept for claims, even crutches and wheelchairs purchased during hospitalization were covered. If the accident resulted in permanent disability, follow-up nursing costs for twenty years had to be compensated. Here's the key point! The insurer covers funeral expenses for fatalities, but psychological distress compensation might not be guaranteed—even if court-ordered. The most easily overlooked aspect: litigation fees when the victim's family sues are sometimes shouldered by the insurer. When covering others' medical expenses, the compulsory traffic insurance's ¥18,000 limit is exhausted first, then third-party insurance kicks in to cover the remainder.
