Insurance cover providing compensation for injury to third parties and/or damage to their property. Generally a synonym for liability Insurance. Liability Insurance always involves three parties, the harmed, the Insurer and the insured charged with causing that harm.
Insurance Encyclopedia
Third Party Fire and Theft
Differs from third party motor only in that it covers damage to the vehicle if caused by fire or theft or attempt at theft. See MOTOR INSURANCE COMPREHENSIVE COVER.
Third party insurance
Synonymous with public liability, it distinguishes cover from a policy covering liability to employees. In aviation insurance the term third party insurance distinguishes general third party cover from legal liability to passengers in the insured’s own aircraft. A captive company in the open market also uses term in connection with the insurance business for parties other than its parent company. Marine third party liability is the primary business of Protection and Indemnity Clubs.
Third party insurance (Liability Insurance)
Another name for liability insurance. It is referred to as third party insurance because it involves the insured, the insurer, and a third party, the person who has been harmed.
Third Party Liability
Liability incurred by the insured to another party but excluding contractual liability.
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The liability that an insured has to a third party.
Third party motor cover
Covers liability for third party injury and property damage, including emergency treatment, and liability for accidents caused by passengers. The policy exceeds the level of cover required under Road Traffic Act compulsory requirements that require cover only in connection with vehicles used on a road or other public place. The normal third party policy is not so restricted.
Third party notice/proceedings
Process by which the defendant in a civil action may obtain a court order to include a third party in the proceedings because he seeks a remedy or indemnity from that party. A retailer faced with a product liability claim might seek to join the manufacturer in the action, perhaps prompted by the insurer in pursuing subrogation rights. This avoids the costs of a separate action. See THIRD PARTY 2.
Third Party Only Policy
In Motor insurance a policy with cover limited to the insured’s liability for accidental death/injury to or damage to the property of, third parties.
Third Party Payor
This refers to TPA who as insurer’s representative is the payor for coverage provided by health insurance policies.
Third party payor (Health Insurance)
A term used to refer to any company that acts as the payor under coverage provided by a health care plan; for example, Medicare or Blue Cross/Blue Shield.