Liability Insurance Third party Liability claims

[Mataracy]

The insurer is liable for the repair of damage to third party vehicle, electricity poles , building etc, caused by the insured provided that he has been adjudged negligent by the police or court of law. This can apply to private car comprehensive or third party, fire and theft or third party policies with extensions.
Usually insurers settle third party liability on motor and other property by paying the insured or the third party property.
As regards third party's bodily injury or death , compensation is paid directly to the injured person or his legal personal representative. At law , the amount payable in respect of death of or injury to third parties is unlimited. However, the insurance company and the third party may come to a compromise settlement and if this fails, settlements may be directed by the court. The injured person is also covered foredical expenses, hospital bills etc.
If any life is lost in the incident, the dependants or the legal persona representative of the deceased would pursue his rights. Death certificate and letter of administration are required before the necessary compensation is paid.

 

[Mandy96]

I think this is a great idea. Actually I have never heard of this before but if this is real then it gives room for third party insurer to claim the insured properties, if I get you right. The disadvantage I see about this is that it may give opportunity for illegal claiming of the insured properties.

 

[btaliat]

To me this is cheating. I think the insurance company should cover for the loss that the insurer may have accrued. Let's think of it, if the insurer pays for the third party and the insurance company pays directly to the insurer, that means in actual sense, the insurer doesnt gain anything.