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Third Party, Fare-Paying Passengers, and Non-Fare Paying Passengers

Indivisuals travelling in a vehicle can bedivided in several categories with reference to auto insurance. Read to find out more.

Apnainsurance.com Research Bureau

29 Nov 2007

  • Third Party - An insurance policy is between two parties, the insurer and the insured. Therefore, a third party is any person who is neither the insured nor the insurer. Third parties in car insurance terms are mainly pedestrians and fare-paying passengers in a vehicle. Persons in other vehicles like the driver, the owner, or passengers are also third parties.

  • Fare-Paying Passengers - They are the people who are carried in a public service vehicle i.e. any motor vehicle used to carry passengers, such as taxis, auto rickshaws, and buses.

  • Non-Fare Paying Passengers - They are the people who are allowed to travel in a vehicle for free. For instance, the owner of the goods being transported traveling in the goods vehicle is a non-fare paying passenger. In addition, passengers allowed to travel on humanitarian grounds are also non-fare paying passengers.

It is important to note that a vehicle owner is legally bound to provide roadworthy vehicles and appoint competent drivers. The vehicle owner's responsibility commences from the time a passenger enters the vehicle and continues until the passenger alights from it. Any accident in the interim period is the responsibility of the owner.

See also:

Do I have to keep my insurance papers in the vehicle?

Important motor vehicle documents

What happens if a vehicle flees after injuring a third party and its license plate number was not legible?

What is my liability if someone else is driving at the time of the accident?

motor insurance FAQs on Claims

motor insurance FAQs on Coverage

Motor Insurance FAQs on Cost, Premiums, Bonus, Discounts, Renewals

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