Like in many other countries, Indian vehicle Act, 1988 has also made it compulsory for every vehicle owner to have a third-party motor insurance policy. Without this obligatory insurance plan, no one is allowed to drive a vehicle on the Indian roads. Though every vehicle owner possesses this insurance plan, however, not many raise a third-party claim when required. This is because people are of the view that raising a claim against a third-party damages involves much nitty-gritty, which makes it a hassled task.
In this post, let us understand the car accident insurance claims third party to see if it is actually a tedious process or not.
About Third-Party Motor Insurance Policy
A third-party motor insurance policy is an obligatory plan that is required for every vehicle owner to drive an automobile in India. The third-party motor insurance policy benefits only the third-party vehicle or third-party persons involved in an accident. Thus, it fulfills the legal liabilities against the third-party and not the requirements of the policyholder’s vehicle and its damages. Hence, many level this policy as ‘Act Only’ plan as this doesn’t cover the insured vehicle.
However, a third-party policy has been mandated by the government and its premium rates are decided by the IRDAI or the Insurance Regulatory and Development Authority. Not just the premiums, even the features of the third-party vehicle insurance policy are almost similar as offered by most insurance companies. The only difference in policy rates is due to the engine capacity of the vehicle. The more powerful the engine is, the higher the premium rate. This is because, one of the factors that decide the premium of an automobile is the engine capacity.
You may note here that the rates of the third-party vehicle insurance policies are reviewed and changed by the IRDAI on an annual basis.
How to Claim Third Party car insurance
The third-party car insurance claim process is a lengthy one that starts with registering a complaint or lodging an FIR of the accident/incident in the nearby police station. The complainant is expected to collect a copy of the charge sheet of the FIR for future reference.
The cases of accidents and other road mishaps are handled by the Motor Accident Claims Tribunal (MACT), which is a unique court meant to handle road accident cases and to decide compensation. Thus, once the FIR is lodged in the police station, it goes to the Motor Accident Claims Tribunal court.
Here’s how to claim 3rd party car insurance:
- After lodging the FIR, you need to share your car insurance policy document to help in making the claim
- You must also notify your insurer as soon as possible
- As already mentioned, settlement of all third-party claims are MACT. Thus, the third-party have to file a case at the tribunal to receive the final claim amount
What Comes under Third-Party Claims?
The policyholder of third-party vehicle insurance can register claims against third-party property/vehicle damages, third-party bodily injuries/personal damages as well as third-party death. The limit for claiming third-party property damages is up to INR 7.5 lakh, while there is no limit in case of liability against third-party injuries and death.
In case of other vehicle insurance policies such as Stand-Alone Own-Damage car insurance Plans or Comprehensive car insurance Plans the insurance provider supports the insured in the entire claiming process. However, in case of third-party claims you may or may not receive any aid from the insurer. So, most of the things under this claim process required to be done by the policyholder on his/her own.
Third-Party Claim Process – Conditions to Raise a Third-Party Claim
Below are the conditions under which a third-party claim can be raised:
|Hospitalization expenses||Third-Party Demise||Third-Party Property/Vehicle Damage|
|Third-party claims can be raised for hospitalization of the third-party person for bodily/personal injury including permanent disability or partial disability caused by an accident. If the third-party person is unable to work or make a living due to the accidental disability, he/she can raise claims for the same.||If an accident causes death of the third-party person, the dependents can raise a death benefit claim as per the income of the deceased.. They can also claim for cost incurred in the hospitalization and other things before the person succumbs to his/her injuries.||If an accident causes any property/vehicle damage, the claimant requires the report of the inspection officer and the report of the surveyor before raising the claim to estimate the loss|
You may also note here that the turnover time for paying the compensation in case of death or bodily injury of the third-party person is three years.
Read More: Difference Between Comprehensive And Third Party Insurance
Claims that Doesn’t Come Under Third-Party Insurance
A Third-Party insurance claims do not cover the below:
|Own Damages of the Insured Car||Drunk and Drive Cases||Driving Without License||Driving With an Invalid License|
|The third-party car insurance online is meant for third-party liabilities and it doesn’t cover damages caused to your car. Thus, own damages to the insured car is not covered under Third-Party Insurance||Third-Party Claims are also not entertained if the driver was under the influence of alcohol at the time of the accident||Driving without a license is not allowed and thus claims are not entertained if accidents takes place when the driver was driving without a license||If the driver is driving with an expired license or if the driver had a learner’s license, claims cannot be raised|
Documents Required for Third-party car insurance claims
Below are the mandatory documents required to raise a third-party liability claim:
- Claim form – duly completed and signed
- FIR copy lodged at the police station
- Driving License copy
- Insurance Policy Document
- Vehicle’s Registration Certificate copy
Besides the above, evidence in the form of Photographs of the accident spot might also be asked for by the Tribunal.
To Sum Up
Because of the various steps that are involved in the process of raising third-party insurance claims, many people find it burdensome. This is the reason for the comparatively low claiming ratio of third-party insurance as compared to other types of car insurance. Moreover, if the damage is less and the claim amount is low, nobody wants to take that much pain to get it compensated.
However, people who are willing to raise a claim against third-party liabilities should remember to note the vehicle registration number of the car that is at fault. Registration number is very important to track the car at fault and to raise a complaint.