Road accidents are not necessarily caused by your own fault. You could be driving safely, following all the rules, but there are other cars on the road that might not be as careful and end up causing an accident. To protect your financial interests in such mishaps caused due to someone else's fault, the Indian government has mandated buying basic third party motor insurance for all cars on the Indian roads.
Luckily, most people don't need to file a claim for this insurance. However, in cases of unforeseen accidents involving your car or a collision with another car may lead to the requirement of this coverage. In such cases where you or your property suffers damage due to a four-wheeler, you have the right to claim for compensation against the owner of the car.
A third party car insurance claim is a very simplified process and can be easily accessed. Let's delve into the details of this insurance cover that will help you save time and efforts while filing the claim!
What is a Third-Party Car Insurance?
Third-party car insurance or liability-only insurance covers the damages done to the third-party or their property by the vehicle. This means if an accident due to someone else's car ends up damaging you or your property; or vice-versa, the victim can claim for compensation against the car owner. The third-party refers to anyone excluding the car owner (first-party) and the insurer (second-party). In case of any third-party liabilities, your insurance company will be responsible for covering the damage.
This is linked to general insurance and is mandatory for every car in the country.
Process for Filing Claim
The damages can differ in terms of nature and consequences. Based on these elements, the filing processes differ as well. Here are the different processes majorly covered by the liability-only insurance policy:
- In case of property damage of the third-party, a claim can be filed through the Motor Accident Claims Tribunal within the jurisdiction of the accident.
- Third-party should procure the insurance details of the vehicle and file an FIR stating the sequence of details at the police station of the same jurisdiction where the accident occurred.
- According to the tribunal's rulings, compensation will be given to the third-party based on the documentation
- The maximum amount for compensation in case of property damage is Rs.7,50,000.
- If the accident causes injury, disability, or death of the third party, the individual or dependents of the individual can file a claim for compensation
- Documentation required while filing for the claim includes FIR and insurance papers. The claim should be filed through the Motor Accidents Claim Tribunal of the mishap's jurisdiction.
- The tribunal's ruling will decide the compensation based on the documentation
- Out-of-court settlements are also permitted by the law
In both cases, the insurer must be informed about the claims at the earliest.
Following road safety is a primary requirement for everyone using the roads. Accidents can be reduced to a certain extent but they are inevitable. In such a scenario, it is necessary to protect your finances and the third-party's interest by investing in a well-devised liability only insurance at the very least.