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What is the difference between 3rd Party and 1st Party Insurance ?

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Shailesh Kumar, Co-founder, Insurance Samadhan verified
Answered on October 08,2021

Ist party is you who are seeking insurance . Second party is Insurer , who is accepting the risk.

So when you drive a vehicle , you may cause damage to any third party property and there can be loss which need to be compensated .

As per Motor vehicle act , all vehicle must take Third Party liability insurance so that all third party damages are compensated .

Third party insurance has a limited liability of 7.50 lakh in case of property damage and unlimited liability in case of death .  The amount is decided through a Motor Vehicle Tribunal .

Hope this is clear .

Shailesh

Insurance Samadhan 

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