What is the difference between first-party and third-party insurance claims?

In Indiana, insurance law distinguishes between two types of insurance claims: first-party and third-party claims. A first-party insurance claim is one made by the insured individual or entity that purchased the policy. First-party claims arise when a loss occurs and the insured individual or entity seeks reimbursement from the insurer. Examples of first-party insurance claims include property loss, medical expense reimbursement, and disability coverage. In contrast, a third-party insurance claim is one made by a person or entity not directly involved in the insurance policy. Third-party claims arise when an incident causes damage to the third-party and the third-party seeks compensation from the insurer. Examples of third-party insurance claims include bodily injury, property damage, and personal liability. In Indiana, insurance law requires insurers to provide coverage for both first-party and third-party claims. In addition, the insurance policy must clearly define the scope of coverage, the premium amount, and the deductible needed to receive benefit payments. In summary, first-party insurance claims are made by the policyholder and third-party insurance claims are made by those not involved in the policy. Both types of claims are covered by most insurance policies in Indiana.

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What is the difference between first-party and third-party insurance claims?

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