A car owner is required by law to register his or her car with an Insurance Company. Depending on the type of registration, the Insurance Company may agree to take care of all injuries and all damages or take care of some injuries and some damages in the event of an accident.
In simple words, a car insurance is basically a contract between a car owner and an Insurance Company, whereby the insurance company agrees to take care of injuries and damages, caused by the owner’s car, on behalf of the car owner.
So when a car owner registers his or her car with an insurance company, the insurance company agrees to:
1. Repair all damaged parts, or some damaged parts, of the owner’s car in case of any accident;
2. Repair all damaged parts, or some damaged parts, of other cars involved in an accident with the owner’s car;
3. Pay monetary compensation to all persons, or some persons, injured by the owner’s car during an accident.
There are two prominent types of car insurance, a comprehensive insurance and third-party insurance.
A comprehensive insurance is one wherein the insurance company agrees to:
1. repair all damaged parts of the owner’s car after an accident,
2. pay monetary compensation to all persons injured by the owner’s car, and
3. repair all damaged parts of other cars, where the accident was caused by the owner’s car.
A third-party insurance, unlike a comprehensive insurance, is one wherein the insurance company agrees to:
1. repair all damaged parts of other cars only but not the owner’s car, and the accident must have been caused by the owner’s car,
2. pay monetary compensation to all persons injured by the owner’s car.
Unlike third-party insurance agreements which do not directly benefit the registered owners and their cars, a comprehensive insurance agreement benefits both the owners and their cars, as well as third-parties.
Take Notice, that whenever there is an accident:
1. where two or more cars collide, an injured person (a pedestrian or a passenger) is entitled to monetary compensation from the insurance company of the car whose fault resulted in the accident;
2. where two or more cars collide, the owner of any damaged car is entitled to repair of all damaged parts by the insurance company of the car that caused the accident;
3. where a car somersaults, crashes into a tree or building or any object, without the involvement of any other car, an injured person (a pedestrian or a passenger) is entitled to monetary compensation from the insurance company of the car;
There are instances where death will arise from a car accident. In such instances, the heirs or relatives of the dead person shall be entitled to any benefits the dead person would have had from the Insurance Company if he or she were alive.
In the next write-up, we shall write on how to formally process an insurance claim to any insurance company and what to look out for when doing so.
Very useful 👍
Great information 👍🏽