What is the compensation scope of commercial tripartite insurance? The third party liability insurance refers to the economic liability that should be borne by the insured according to law, and the insurance company is responsible for compensation when the insured or the driver allowed by the insured happens an accident in the use of the insured vehicle, which causes the third party to suffer personal injury or death or direct property damage. Compensation=compensation payable × (1 - franchise ratio). The insurer will not compensate for any deductible provisions such as mental damages. Do you understand this explanation?