ECONOMICS

Detailed explanation-1: -Third-party insurance, which is also sometimes referred to as ‘act-only’ insurance is a statutory requirement for all vehicle owners as per the Motor Vehicle Act. It is a type of insurance cover where the insurer offers protection against damage to the third-party vehicle, personal property and physical injury.

Detailed explanation-2: -First-party refers to the insured individual, second-party is the insurance provider, and third party is the person towards whom damages are owed by the first-party in an accident.

Detailed explanation-3: -Let’s start off with a quick definition of collision insurance: collision insurance is a type of auto insurance that can cover you in the event of a crash or accident with another vehicle or object if your car needs to be repaired.

Detailed explanation-4: -First-party insurance covers the damages or losses caused to the policyholder or his/her vehicle. The damages can be sustained during riots, strikes, earthquakes, floods, fire, theft etc. Third-party insurance covers damages or losses caused only to the third party due to an accident. Accident cover.