How to claim a third-party insurance

It is easy to claim third party insurance if you take a quick action and go with the legal procedure. In busy metropolitan cities like Delhi and Mumbai, accidents are very common. And these accidents obviously costs a huge car damage brought by you not generally by your fault. So, its a better option to claim third party insurance. But How it’s possible?

Yes, for sure it is possible in our country.

In India, it is mandatory for all to have a valid third-party insurance according to the Motor Vehicle Act, 1988. Driving without which on Indian roads is a legal offense. But very few people remember to claim third party insurance when required. And if they know, they resist it thinking of getting trapped in the hassle process of the claim.

Let us go through the whole third-party insurance process.

What’s covered under the third-party insurance

A third party insurance policy will cover only the physical damage and the injury caused to the third party or say, the victim. It does not cover anything related to self. A third party insurance is legally compulsory for all the vehicle owners in India.  This covers the legal liabilities occurred to the third party by you. So, the real benefit of this third-party insurance is only the third party, and you are at loss.

The IRDA decides the premium of the third party insurance cover. It is nearly the same for all insurance providers. However, the premium amount may vary based upon the engine capacity of the vehicle. For instance, as an owner of a Maruti Swift, you pay 3,500 as third party insurance premium, whereas the annual premium for Toyota Camry goes around Rs 5,000. IRDA reviews the third party insurance rate annually and makes changes accordingly.

The Difficult Part

The hassled procedure of claiming third-party insurance begins with registering a First Information Report at a nearby police station and collecting a charge sheet. After which, the Motor Accident Claims Tribunal, registers a case, as Civil courts can’t make a judgment on road accidents or decide a claim.

One can apply for the claim for injury, death or damage to property, with the tribunal court for jurisdiction over the area where the insured person resides. However, there is no limit for a claim against the liability for injury or death. One can avail the cover for the property damage occurred to the victim up to a sum of Rs. 7.5 lakh.

Here you have to fight for everything yourself. The insurance provider will not help you to get the claim settled. Insurance policy providers have a ‘knock-to-knock agreement’ according to which they are responsible to pay for the damages to the policyholder’s vehicle till the time it offers coverage for such injury or damage. Hospital bills, damage to the vehicle, all will be payable by the insurer if it is covered and no claim will be entertained from the insurer if the fault found at a vehicle. Before heading to the tribunal, ensure yourself that you have kept all the required documents. A proper narration of the incident is required with an FIR. The records of expenses are reserved to provide the financial losses.

The process to claim third party insurance

One can file a claim for accidental injury, permanent total or partial disability and loss of income. i.e if the person is unable to earn due to bodily injury. In case of the policyholder’s demise, the dependents are eligible to claim, based on the income of the one person. One can claim for the injury that leads to death.

In case of physical damage to property, you will need the inspector’s report, original bills, and the report to estimate the loss. The turnover time for third-party claims for injury or death is three years.

The major difficulty is to prove other party’s mistake in the tribunal. The claimant has to establish other party’s negligence to avail compensation.

Don’t expect that your insurance company will reimburse the difference if you are reimbursed with less than what you expected. One can’t claim third-party insurance compensation for the same damage twice. So, their possibility of getting stuck is high.

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By | 2018-07-30T11:48:32+00:00 June 15th, 2018|Business Loan|0 Comments

About the Author:

Pulkit Jain is the founder of LegalRaasta – India's top portal for registration, trademark, return filing and loans. Pulkit is a veteran CA with over 10+ of experience.