Who are 1st Party, 3rd party & comprehensive when we talk about insurance/takaful cover?
Although it makes sense there is no 2nd party cover.
- 1st party refer to the driver/owner.
- 2nd party always refers to the risk taker (Insurance / Takaful company)
- 3rd party is referring to the other person(s) involved
- A comprehensive cover is a cover which covers all three parties above
Example: Ali (1st party) drove a car with a valid ABC Berhad(2nd party) insurance cover. Hit Ahmad(3rd party) a motorcycle rider.
- Ali paid for 3rd party cover type which will only cover Ahmad’s claim due to the incident.
- Ali’s car will be covered if only Ali subscribed to Comprehensive cover.
We respect each customer’s opinion on which cover deem fit.
Good news for all customers.
In the focus on a fully automated and fast process, we recently updated our backend system (FARA) to automatically identify the previous cover of customer vehicle cover and assign it accordingly.
Here are some examples:
MOTOR THIRD PARTY – Covers else than the policyholder
MOTOR THIRD PARTY FIRE AND THEFT – Similar to MOTOR THIRD PARTY, this cover includes for there be any incident of loss(stolen) or if your vehicle caught fire.
* 3 examples taken from actual different model of cars and motorcycle with age differs.
MOTOR COMPREHENSIVE – The best cover of all. This cover type enables other additional features/options such as
- Special Perils – Incident in act of god eg: flood
- Windshield cover – This cover will let you claim windshield damage without impacting your NCD
and much more
Try FARA and experience how fast we populate the data for a quotation.