Having car insurance is significant for you and your family's safety. The right car insurance protects you financially when your car gets damaged in any unforeseen event. It gives you coverage against natural disasters, fire, accidents, and third-party liability.
Third party car insurance is one type of car insurance that provides coverage against any third-party damage. In case of third-party bodily or property damage, you can file a compensation claim with your insurer and settle it quickly. To do so, you need to know how to claim 3rd party insurance and understand the terms and conditions set forth while buying the car insurance.
Let's understand what third party car insurance is and how to file a claim in detail.
Understanding third party car insurance
Third party car insurance is mandatory under the Motor Vehicles Act, 1988. This government-mandatory requirement ensures that policyholders will be compensated with an agreed amount to cover their financial loss or damage in the event of an accident. This insurance type also covers any legal liabilities from the accident causing third party bodily or property damage.
Third party insurance coverage benefits you in many ways. It provides financial protection against liability arising from accidents and compensates third party damage, including pedestrians, drivers or passengers. This protection helps you bear financial losses and safeguards your assets against legal liabilities.
How to claim third party insurance for a car?
Evaluating how to claim 3rd party insurance is a significant task to ensure a smooth and hassle-free experience in case of accidents. Opting for an insurer known for prompt and fair claim settlement process is necessary. This helps you avoid unnecessary delays or disputes regarding claims.
Following are some primary 3rd party car insurance claims that you make in case of an accident:
- Medical expenses claim if any bodily injuries or property damage occurs, including treatment expenses and hospitalisation bills.
- A compensation claim for physical disability to a third party.
- A compensation claim for the money paid to dependents of third parties in case of death due to an accident.
- The compensation ceiling price capped by IRDA is at RS. 7.5 lakhs. If the claim exceeds this ceiling, the car owner must pay the balance amount.
Third party insurance claim procedure
To understand how to claim third party insurance for car comprehensively, check out the following steps:
1. According to the agreed policy terms, the policyholder must inform the insurer about the accident within the stipulated time.
2. Filing an FIR at the nearest police station and submitting a copy of the FIR to the insurer is necessary.
3. Fill out the form and add the necessary documents to claim for the third-party losses. However, the third party insurance claim process gets delayed in case of death or permanent disability to a third party.
4. There is a special court - the Motor Accident Claims Tribunal, where the crime needs to be registered.
5. The court hears both parties and analyses the proof before fixing any liabilities.
6. The court will decide the final compensation. After which, you can contact your insurer and file a compensation claim form.
Claim process under different scenarios
Before you know how to claim third party insurance, you should understand that the steps to file a claim might differ according to the situation. The claim process can be settled quickly with the right insurer. So, while choosing your insurer, always look for claim settlement history and get reviews of their past customers regarding this.
However, a third party insurance claim procedure may seem easy to file, but getting a satisfactory settlement might be a tough road to walk on. Let's see how the claim process works under different scenarios.
In case of disability, injuries or death
To understand the third party claim process in case of death, injuries or permanent disabilities, follow the below-given steps:
1. File an FIR immediately after the accident and take a copy of that.
2. Get your insurance documents and inform your insurer about the same.
3. Hire a motor claim lawyer and file a compensation claim case in the Motor Accident Claims Tribunal for speedy claim settlement.
4. In many cases, you would want an out-of-court settlement, so the case gets closed by mutually agreeing on a compensation amount.
In case of property damage
Following are the steps involved in the third party insurance claim process:
1. Property damage under a third party includes damage incurred by your vehicle and your personal property, like your car.
2. In the event of damage, you must file an FIR and get its copy for claim settlement.
3. The claim needs to be filed in the local tribunal court. It will decide the final compensation amount after hearing the story of both sides.
4. The maximum limit of compensation in this case is Rs 7.5 lakhs.
Car insurance is a much-needed and mandatory cover for anyone driving their cars on Indian roads. If you have comprehensive coverage, third party insurance coverage often comes with it. However, those who only have extensive coverage partially depend on third-party plans. So, as your case may be, choose the option that helps you with a quick and easy claim settlement.
