How to Make a Third-Party Insurance Claim

As per the Motor Vehicles Act 1988, it is mandatory for all vehicle owners to have Third-Party insurance. Get to know more in details here.

The congestion of Indian roads, traffic jams, poor infrastructure, and impatience of people lead to several accidents on a daily basis. During such events, the damages caused to third parties can put the vehicle owners under financial burden. As per the Motor Vehicles Act 1988, it is mandatory for all vehicle owners to have Third-Party insurance. With the protection of insurance, if you are the victim of an accident and have suffered damages, you can claim a settlement!

What is Third Party Insurance?

In a third-party insurance policy, the first party is the policyholder, the second party is the insurance company and the third party is any third person who can file a claim if they are harmed or injured by the first-party vehicle.

If one owns a car/two-wheeler, they will own Third-Party Insurance. This is also known as the ‘Act Only’ policy where the policyholder will be allowed to compensate for damages caused to a third-party person or property in case of an accident. Third-party insurance is the most basic and mandatory insurance policy in India, and it only pays for the damages to the third party. Remember that comprehensive insurance or first-party insurance covers both third-party as well as first-party claims

How to Make a Third-Party Claim?

If an accident causes injury, property damage, or death due to somebody else’s vehicle, here are the steps to follow to file a claim:

● The first step is to file a FIR in the local police station and obtain a charge sheet at the time of damage
● It is important to have evidence to show that you have been affected by the policyholder. Collect hospital bills and photographic evidence of the scene
● Note the name of the witnesses present along with their numbers. They can support you in receiving a compensation
● Obtain the details of the other person involved in the accident as they would have to settle the claim
● Hire a motor claims lawyer and file a compensation claim in the Motor Accident Claims Tribunal (MACT).
● The tribunal court will decide if the claim is valid after checking all the documents
● The compensation amount is dcided after both parties are heard
● The maximum compensation in case of property damage is Rs.7.5 lakhs and there is no limit in case of injury or death

Documents Required for Third-Party Claims

● Proof of insurance which is the policy document copy that has the policy number
● Duly signed claim form
● Engine number and chassis number
● FIR copy from the local police station
● RC copy of the vehicle
● Driving Licence copy
● Stamp required in case of company registered vehicle’s original documents

One can also hand in additional documents such as photographic evidence, inspection officer’s report, original bills, and surveyor’s report that are proof of fault of the opposition party.

Reasons for Third-Party Claim Rejections

● When an accident is caused due to driving while drunk
● If one drives without a valid license or with a learner’s license
● If the damage is not a direct result of the accident
● When the damage is due to negligence
● If proof of the accident is not given
● If false proof is provided
● If the claim is filed too late

No matter how careful a person is while driving, anything can happen and it is prudent to have the right protection. Make sure you have a proper insurance cover that can cover all your requirements. To know more about third-party insurance, click here!