Understanding a Motor Third-Party Liability Insurance Policy
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What is a car (motor) third-party liability insurance?
A motor third party liability insurance covers damages resulting from a crash / accident caused by your insured vehicle. It reimburses the other parties that have suffered damage as a result of your vehicle crash against the types of damages defined in the insurance Policy and up to the amounts specified in the insurance Policy. It excludes all the cases described under the Exclusions of the Policy within the schedule of Special / Particular Conditions. A Third Party Liability insurance policy does not cover:
you or your family members
your insured vehicle
your own properties
your relatives up to the extents of relation defined in the Particular Conditions of the insurance Policy
It is designed and formatted to cover OTHERS, reason why it is called "Third Party Liability".
Glossary of terms in a car third-party liability insurance policy
Bodily Injury: An injury that occurs as a result of a car accident to any part of the body and up to the death.
Claim: When you ask your Insurer to pay you the cost of damage your vehicle occasioned to others.
Coverage: The risks that are covered by the insurance policy, including the type of risk e.g. material damage, bodily injury, fire, theft, etc. and the amounts up to which your Insurer will pay against such risks. Any costs to which you are liable and that extend beyond the coverage have to be borne by the Policy Holder.
Currency: The currency in which the insurance Policy is priced and due for payment. It is also the currency used to determine the Coverage.
Endorsement: A set of specific conditions that apply to the insurance Policy and that are usually standardized, coded and defined under a worldwide re-insurer manual. Endorsements are Particular Conditions.
Exclusion: Any risk that will not be covered by the Insurer in case of a claim under the insurance Policy.
Expiry: The date beyond which the insurance Policy becomes void and null. No claim can be filed beyond this date.
General Conditions: A set of conditions that are of a "General" nature meaning that apply to all insurance policies issued by the Insurer. These are standard conditions which are exactly the same for any insurance Policy of a certain type issued by the Insurer. They are superseded by the Special or Particular Conditions whenever their contents are common to the Particular / Special conditions.
Inception: The date when the insurance Policy becomes effective and your Insurer starts covering you.
Insured: The person who is covered by the insurance Policy.
Insurer: The insurance company who issued the insurance Policy
Material Damage: Damage resulting from a car accident / crash to non persons i.e. to whatever vehicles, buildings, infrastructures, city furniture, lighting poles, etc.
Own Damage: Damage to the Insured
Particular Conditions: Specific conditions that apply to each and every insurance Policy and that do supersede the General Conditions of the insurance Policy whenever such General Conditions and Particular Conditions are covering the same topic.
Period of Insurance: The duration during which the insurance Policy is valid and the Policy Holder can issue claims.
Policy: A contract between the Insurer and the Policy Holder.
Policy Holder: A person who entered into the insurance contract with the Insurer.
Premium: The price of the insurance Policy.
Premium Frequency: The period covered by the Premium and upon which the insurance Policy needs to be renewed.
Replacement Car: A car offered at no charge by the Insurer through any of its partners (e.g. a car rental company) and for a period of time as a replacement car for the one of the Insured. It usually applies to cases when the insured vehicle suffers damages that require its repair for a prolonged period of time. The period during which the Insurer will offer at no charge a replacement car is not necessarily the same as the one needed to repair the insured vehicle.
Road Assistance: A towing / transport service for the insured vehicle from the location of the crash / accident to a place designated by the Insured and agreed with the Insurer. This service is limited to a certain number of Km as specified in the Particular Conditions.
Special Conditions: See Particular Conditions.
Sum Insured: The maximum amount of money in the specified Currency that the Insurer will pay under the Policy.
Third Party: Any person or property of any nature that is not owned by the Policy Holder or any of its relatives. Refer to the Particular and General Conditions of your insurance Policy for the extents of relationship under which the relatives are excluded from the Policy Coverage.
Vehicle Details: Details of the insured vehicle making it unique. The most important detail remains the vehicle's VIN number which is clearly mentioned in the insurance Policy for accurately defining it.
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