There are two types of third-party insurance which are third-party and full third-party insurance covers respectively. In this article we will take a look at cost of third party insurance in Zambia.

Third-party Insurance

Third-party insurance protects the interests of the policyholder against damage caused by the policyholder to property or private persons.

It is argued that third-party insurance helps reduce the risk and liability of the policyholder in a number of situations. Further, this type of insurance cover is ideal and recommended for cheap and old vehicles that cost less to repair.

The preliminary step in understanding how third-party insurance operates is by understanding the terminologies used. Some of the commonly used terms related to third-party coverage are:

First-party refers to the owner of a vehicle who has purchased an insurance policy.

Second-party refers insurance company where the owner of the vehicle purchases an insurance cover.

Third-party refers to the plaintiff for damages caused by the first party.

If the policyholder is involved in an accident involving a third party, the policyholder is responsible for any damage or injury. In the event of an accident, the policyholder must notify the insurance company as early as possible and inform them of the facts.

Full Third-party and theft insurance

This coverage provides the same compensation benefits for any legal liability for damage you cause to someone else’s property, as well as legal liability for personal injury or death caused by your car to someone else. However, this insurance also covers damage caused by fire to your own vehicle and theft of your car. This is a budget plan that allows multiple people to get the partial benefits of the full package for less money than the comprehensive insurance plan.

What is Covered in Third-Party Insurance?

Cost of Third Party Insurance in Zambia

Personal damage to third-party

If someone is killed or injured by your car, your third-party insurance will cover all related costs.

Damage to property

If you crash into a property or another vehicle causing damage you cannot just get away with it. You will have to pay for the damage and luckily your car insurance will cover it for you.

Personal injuries cover

When you are involved in an accident and have sustained injuries, your third-party insurance policy will cover your injuries.

Third-party insurance basically covers all costs incurred if you cause damage to a third party while driving, be it damage belonging to a third party, a person, or even another vehicle.

The Cost of Third-Party Insurance in Zambia

Like other insurance policies, there is no fixed cost equally for third-party car insurance in Zambia. The cost is determined by the value that you place on your vehicle.

However, the only figures revealed are those with regard to claims. The average amounts that most insurance companies in Zambia compensate are listed below

The compensation for death or bodily harm per individual is up to K30,100. The total amount needs to be multiplied by the total number of persons either dead or injured. Death or bodily damage per incident is up to K60,100 And lastly, the compensation for damage to property is up to K30,000.