What is first party insurance?

First Party Insurance is the type of insurance coverage that protects the party that owns the insurance policy from injury, damage to assets or loss. It is distinguished from third -party insurance that compensates for someone other than politics holder for injury, damage or loss caused by the holder. Many types of insurance contracts contain a combination of first -party coverage and third parties.

Insurance is an investment vehicle that offers the protection of the holder and revenues on the basis of the Act on the Average Person or Company providing cover. The insurance contract guarantees the premium that in an unlikely event that it will record a loss, it can obtain compensation for this loss in exchange for paying regular amounts of money that cannot be returned if the qualification loss never occurs. There are many different types of insurance products, including home, automotive and health insurance.

different types of insurance also offer different coverage. There Acho's two sides that can be included in the frameworkI insurance contracts. The first is the person who requested this policy and pays premiums. The coverage of all the losses that this person experiences is called first -party insurance. The second type of coverage is for anyone who is not a policyholder, but who receives an advantage in this policy called third -party insurance.

The

person who has the first party insurance proceeds directly against his own insurance company to obtain compensation for losses. For example, if the policyholder's car is affected by another driver who does not have automotive insurance, he would have to claim repairing damage with his own insurance company, even if the accident was a mistake of the second driver. Likewise, a car is stolen, a claim that is measured at the insurance company of the insurance company would concern compensation directly from the company within the insurance contract. Other types of insurance hobbies that are considered to be transactions of the first party, are health and disability insurance,Household insurance and business insurance.

At any time, the person submits to the first -party insurance company to his insurance agency, puts an policyholder and the company in an unfavorable relationship. This is quite different from the situation where the insurance company advocates the policyholder before the third -party claim. Given that the policyholder and the party seeking to obtain a replacement is placed in the position of attacking merit with a company with a company that pays as a customer. Many jurisdictions regulate insurance companies to ensure that they are acting in good faith when handling the first -party insurance requirements.