Glossary: Third-Party Claim

Third-Party Claim:

A third-party claim normally involves a situation where a person who does not qualify as an “insured” makes a claim under a policy of insurance. This can happen when the “insured” is negligent, causing injury to a third party. The “insured” may be entitled to “indemnification” under a policy of insurance, meaning that the insurance company will need to pay on behalf of the insured certain damages that the insured may be legally liable to pay. 

What Are Some Examples of Third-Party Claims?

For example, assume that one motorist is rear-ended by another. The motorist who was rear-ended may potentially file a third-party claim with the rear-ending motorist’s insurance company. That means a party who does not qualify as an “insured” under that policy can still receive insurance payments from that policy. 

 Personsinvolved in an accident (or incident) with another person can file a third-party claim with the applicable insurance companies. Generally speaking, insurance companies will only pay for damages that are covered under the policy of insurance. Such claims can involve property damage or bodily injury. 

How Long Does it Take to Settle a Claim?

It depends on the type of claim, including its complexity, the policy limits, and the number of claims being brought by different people. Some claims can be settled  within a few days, while others may take months or even years.

It can sometimes be difficult to determine when a third-party claim is available. If you were injured in a car accident and are looking to make a third-party claim for bodily injuries, please do not hesitate to contact William Mattar, P.C., an experienced law firm.