How to claim third party car insurance?

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One fine rainy day Aakash was driving his car to the office. He was minding his own business and driving carefully. Suddenly, a bike rider skidded on the road and landed on the left side of his car leaving a massive dent on the left door. Aakash hurriedly got out of his car to give the biker a piece of his mind but he saw the biker lying injured on the road. Aakash helped the biker get up as he immediately realised it was not the biker but the wet road to blame. Next, he called his boss and took the damaged car to the nearest service center.

Did Aakash do the right thing? Definitely yes, as a fellow human being he did the right thing but as an insured he could have handled things in a smarter way.  Though Aakash may not pay out of pocket for repairs as he had comprehensive car insurance, he would still lose out his no claim bonus (NCB).

Aakash could have preserved his NCB by using the biker’s third-party insurance to pay for the cost of repairs. But why didn’t Aakash use this option? Either he was not aware of this option or he knew that claiming third party insurance for car is a long and cumbersome process.

What is third party insurance for car?

Let’s get a better understanding of third party car insurance. Why it’s called third party insurance? If there’s a third party, there must be a first and second party as well.

The first party is the policyholder who bought the third party insurance for his car. The second party here is the insurance company and the third party is the victim of the accident who can file a claim for compensation in case of injury, death or property damage. As a third party you can claim compensation by filing a case against the policyholder and his insurance company.

Remember that your third party insurance policy is not going to help. The first party must have third party car insurance so that you can claim for compensation.

How much can the third party claim? 

There is no limit of claim in case of serious injury or death to the third party. However, there is a limit on third party property damage cover, which is usually the third party’s vehicle. The insurance company will only provide up to Rs. 7.5 lakh of coverage for third party property damage. Any cost of damage above that has to be borne by the policyholder (first party).

Filing a third party car insurance claim – The process

Claims for injury, disability or death

A third party or dependents of the third party (in case of death) can approach the Motor Accident Claims Tribunal to file a claim for compensation. It is important for the victim to collect the insurance details of the vehicle owner involved in the accident to file a third party car insurance claim.

The victim also needs to file an FIR of the incident with the police describing the accident in detail and explaining who was at fault. With the FIR and insurance details in place, then the victim or the victim’s representative can file a claim with the Motor Accident Claims Tribunal in the city where the accident took place or where the victim resides.

Generally, legal experts recommend making an out-of-court settlement in cases not amounting to death as the litigation process can get very lengthy. Even in cases involving death, the accused car owner can fight the case with his lawyers. After the hearing, if the case is in the claimant’s favour, the Motor Accident Claims Tribunal will determine the amount that needs to be paid to the victim or his dependents by the insurance company.

Accidents involving death can create a huge legal and financial liability for the car owner if he is driving without third party insurance for car. Ensure that you are cushioned against such risks with Bajaj Allianz car insurance available on Finserv MARKETS.

Third party property damage claims

You can also claim for damages received by your car using the first party’s third party car insurance policy. You have to file a case with the Motor Accident Claims Tribunal using the same procedure mentioned above. If both the third party and first party don’t want to wait out the entire legal process, they can make an out-of-court settlement.

No-fault liability and fault liability claims

According to the Motor Vehicles Act of 1988, if a vehicle owner is involved in an accident and injury, disability or death is caused to the third party not due to the vehicle owner’s negligence, the third party can’t claim more than the predetermined amount fixed by the Act. If the accident is caused entirely due to the fault of the first party, then the court decides the compensation amount based on factors such as loss of income, medical expenses, etc.

Do you know that having at least third party car insurance is mandatory by law? As per the Motor Vehicles Amendment Act of 2019, it can invite stiff fines or even jail. You can buy Bajaj Allianz third party car insurance on Finserv MARKETS at a nominal cost to protect yourself from fines and legal liability arising out of injury, death or damage caused to a third-party.

 

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