what is the liability of an insurer towards third party in comprehensive cover?

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  • what is the liability of an insurer towards third party in comprehensive cover?


Answer #1 | 23/12 2013 08:51
Comprehensive Coverage does not extend to a third party, It is a first party coverage only. Liability Coverage would extend to a third party on behalf of the first party.
Positive: 65 %
Answer #2 | 23/12 2013 08:53
Depends on the third party; were they a loss payee or are we talking about another vehicle's owner? For a loss payee (think Ford Credit or another finance company), they would be responsible for the Actual Cash Value of the vehicle less the deductible as long as comprehensive coverage was purchased.
Positive: 59 %
Answer #3 | 23/12 2013 10:12
First, the basics: Your auto policy has two types of coverage; property and liability. The property is for damage to your vehicle and includes collision (you colliding with another vehicle) and comprehensive (damage to your vehicle from anything other than collision). Damage to anything other than your car is covered under liability. This includes damage to the other party's car or person, a building that you accidentally hit, etc. The only way a third party is involved with comprehensive is if there is a lien holder listed on the policy. The insurance company is very likely to issue any payments (for damage to the covered vehicle) on a check made out to both the insured and the lien holder. If the insurance company does not have a lien holder listed, they will not make payments to anyone except the insured. So, if a 3rd party has a financial interest in the vehicle but the insurance company does not know about it, the 3rd party will not get anything from the insurance company if there is a covered loss. Hope this clears things up for you.
Positive: 39 %
Answer #4 | 23/12 2013 15:44
You've muddled up three completely different insurance terms. Liability to a third party, is determined by law. Technically, an insurance company doesn't have to accept a third party claim, unless the first party files for it.
Positive: 7 %

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