How to Claim third-party Insurance Easily?
Third party insurance. Do these words ring a bell? The chances are high since they are some of the most used words in the insurance industry. And you most probably would have come across them, without knowing entirely about them. Here is everything that you need to know about third party insurance claims and some more.
What is Third Party Insurance
Before we can get to a third party insurance claim, it is good to know what third party insurance is all about. Anyone who wishes to buy two-wheeler insurance or four wheeler insurance primarily can choose between a third party liability policy or a comprehensive policy.
According to the Motor Vehicles Act, a vehicle owner must possess at least third party liability insurance. The policy ensures that you have just enough coverage in the event of a mishap and helps you keep hefty fines at bay. Thus, you no longer need to worry about traffic personnel handing out hefty challans for driving without insurance.
Since the policy does not offer all the bells and whistles, the policy premiums are more affordable as well. It serves well if you are on a budget.
If a vehicle owner meets with an accident, there is a good chance that they might damage the vehicle of someone else. Or worse, injure another person during the accident. In such instances, the onus of paying for the damages or injuries is on the vehicle owner.
Not if, they have a third party liability policy. A third party liability insurance offers financial as well as legal assistance in such cases. However, it is important to understand that the policy only covers damages to other vehicles. If your vehicle is damaged during the accident, the policy will not cover the same.
Third Party Insurance Claim
Now that we are talking about a third party insurance claim, here are some of the most common claims associated with third party insurance.
- If a person is injured or passes away due to the accident, there is no cap on the compensation amount that the insurer can pay out. For injuries, it includes medical expenses, treatment-related expenses, and or hospitalization expenses.
- If the accident leads to the disability of a person, the policy will cover compensation for loss of earning for that individual, if they can no longer work.
- If the accident leads to any physical disfigurement of another individual.
- If an individual loses their life due to the accident, the insurer will compensate their family members for the same.
- If any property is damaged due to the accident, the insurance company can compensate up to the maximum of INR 7,50,000. Should the expenses extend beyond this, the policyholder will end up paying the excess.
For those who are wondering how to claim third party insurance, here are some easy steps to do the same. There are ideally two scenarios where third party insurance claim comes into the picture. First, you have damaged the vehicle of another individual or damaged someone’s property. Second, your vehicle is damaged by someone else during an accident.
You Have Caused the Damages
If your vehicle is the reason behind damages to another property or vehicle, you need to follow these steps.
- An FIR must be lodged at the nearest police station and you need to obtain a charge sheet. The FIR can be filed either by you or by a third party.
- You need to share a copy of your insurance policy so that the claim can be initiated. You can either provide a hard copy of the insurance or a digital copy would also do.
- You need to inform your insurance company about the accident.
- Any third party related claims are settled in the Motor Accident Claims Tribunal. The third party must file a case with the tribunal and they will decide the compensation amount.
It is advisable to opt for an out of the court settlement if the damages are minimal. The simple reason is that for smaller amounts, it might not be worth going through the entire process. And it can time consuming as well.
How to Claim Insurance from Other Party?
There aren’t fundamentally a lot of differences in both these processes. The only thing that changes is the role that you are playing.
- You need to file an FIR with the nearest police station and generate a charge sheet.
- You need to capture as much evidence as possible, which puts the blame of the accident on the other driver. If you can, it is a good habit to capture images or videos of the incident.
- You can note down the names of any witnesses around the accident spot as well, provided they will support your claims.
- You need to ask the car owner for a copy of their insurance so that you can claim for the same.
- You can hire a claims lawyer and file a case with the Motor Accident Claims Tribunal for the desired compensation.
- The Tribunal decides on the final settlement amount of the policy after going through all the evidence and stories from both parties.
- The Tribunal can rule a maximum compensation of INR 7,50,000 in the case of property damage. However, there are no such caps when it comes to injuries or the death of an individual.
For those who are looking for third party insurance claim settlement in India, following the above steps would ensure an easier process. While the process might seem a bit overwhelming at first, but if you follow everything in the right sequence, the claim for damages is rather straightforward.
For a third party insurance claim, you need to submit the following documents to your insurance company.
Documents Required for a Third Party Insurance Claim
- A claim form that is duly filled
- A copy of the FIR
- A copy of your driving license
- A copy of the registration certificate of your vehicle
- A copy of your insurance policy
Being aware of the documents and the steps to be followed ensures that you do not find this entire ordeal cumbersome.