Road accidents are not necessarily caused by your fault. To protect your financial interests in mishaps caused by someone else's fault, the Indian Government has mandated that all cars on Indian roads have basic third-party car insurance.
Unforeseen accidents involving your car or a collision with another car may lead to the requirement for this coverage.
A third-party insurance claim is a very simplified process that can be easily accessed. Let's delve into the details of this insurance cover, which will help you save time and effort while filing the claim!
What is Third-Party Car Insurance? What Does it Cover?
Liability-only insurance or
third-party car insurance covers the damages done to the third party or their property by the insured vehicle. In case of any third-party liabilities, your insurance provider will be responsible for covering the damage.
In simple words, if an accident due to your car ends up damaging a third person or their property, or vice-versa, you can claim your third-party insurance to offer financial compensation to the victim of the accident.
Note that the third party refers to anyone excluding the car owner (first-party) and the insurer (second-party).
As per the Motor Vehicles Act of India, long-term third-party insurance is mandatory for every motor vehicle in the country. The validity of third-party insurance for two-wheelers is five years, whereas it is three years for four-wheelers.
What Can be Claimed Under Third-party Car Insurance?
Medical expenses in case of physical injuries suffered by a third party due to an insured car.
Compensation for physical disablement of a third party due to an insured car.
Compensation for the death of the victim (third party) due to an insured vehicle.
Damages/loss incurred to third-party property due to the insured vehicle.
How to Claim Third-party Insurance for Cars?
In case your insured vehicle ends up causing loss or damage to a third party, here are the simple third-party insurance claim procedures you need to follow at Reliance General Insurance:
Inform Your Insurer
Inform us as soon as you encounter the unfortunate incident. You can
file the claim by calling us on 022 48903009. It is a paid number with no waiting time. Alternatively, you can file the claim using the Reliance Self-i App.
Gather Documents
Next, arrange all the
necessary documentation for your claim. This includes police reports, witness statements, photos/videos and policy papers, among others.
Submit Your Claim
Fill out and submit your
claims form. Make sure that the details filled in the claim form are correct and accurate.
Investigation and Approval
Upon receiving your claim request, we will survey the incident to verify the correctness of your claim.
Final Settlement
Once your claim is approved, we will offer a settlement amount, which you can provide to the third party. If the third party doesn't agree on the settlement amount, the case will proceed to litigation, and the court or the arbitrator will take the final decision.
When Should You Claim Third-party Insurance for a Car?
Since third-party car insurance covers losses or damages sustained by a third party due to your insured vehicle, you can lodge a claim to let your insurance company pay for the compensation on your behalf.
Below are the scenarios when you can make a third-party insurance claim:
Accident Involving Third-party Loss/Damage
You can claim your third-party insurance if your insured car gets involved in an accident and leads to bodily injury, death or damage to a third party or property. Your insurance company will help you compensate the victims of the accident for which you are responsible.
Legal Liabilities
If a third party decides to take legal action against you, you can claim your third-party insurance to cover legal expenses such as lawyer fees, the cost of legal documentation, etc.
How Does Third-party Insurance Claim Process Work for the Third-party?
We have discussed how to make a third-party insurance claim as the owner of an insured vehicle. Let's now see how the process works if you are the victim.
The damages can differ in terms of nature and consequences. Based on these elements, the claim filing processes differ as well. Here is how third-party car insurance works in different scenarios:
In Case of Property Damage
In case of property damage to a third party, the victim can file a claim through the Motor Accident Claims Tribunal within the jurisdiction of the accident.
A third party should procure the vehicle's insurance details 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. Note that the maximum amount for compensation in case of property damage is ₹7,50,000.
In Case of Injury/Disability/Death
If the accident leads to injury or disability of the third party, the individual or dependents of the individual can file a claim for compensation. The same stands true for third-party insurance claims for the death of a third party.
The claim should be filed through the Motor Accidents Claim Tribunal of jurisdiction. The tribunal decides the third-party insurance death claim amount based on the available documentation.
In both cases, the insurer must be informed about the claims at the earliest.
Conclusion
Everyone using the roads must follow road safety rules. 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 interests of the third party by investing in our well-designed
car insurance plan.
No doubt, third-party car insurance is mandatory and helps you compensate for the third-party losses arising from your vehicle; it does not offer any coverage for damages/losses sustained by your insured vehicle.
This is where our
comprehensive car insurance can help. Our plans offer coverage for both third-party liabilities and own damage. Besides, we offer benefits such as affordable premiums, a 100% claims settlement ratio, a wide range of add-ons and more.
Get in touch for more information!
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Frequently Asked Questions
Can I claim third-party insurance for a car without an FIR?
No. An FIR is a mandatory document for filing a third-party car insurance claim. This means your claim will not be approved until you submit a copy of the FIR.
Is third-party car insurance enough?
While third-party car insurance is mandatory, it is not enough on its own. This is because it only offers coverage for the damages and losses sustained by a third party due to your insured vehicle. It does not cover any loss or damage suffered by your vehicle in the incident.
Hence, an own damage plan should be purchased alongside the mandatory third-party insurance. Alternatively, a comprehensive car insurance plan can be purchased for overall coverage for self-damage and third-party liabilities.
What is the validity of third-party car insurance?
As per the order of the Honourable Supreme Court, every motor vehicle owner must have long-term third-party insurance. The validity of third-party insurance for two-wheelers is five years, whereas it is three years for four-wheelers.
How many days after an accident can I claim third-party insurance?
The duration of filing for third-party car insurance varies from one insurance company to another.
However, it is strictly recommended to report the exact incident to your insurance provider within 24 hours of its occurrence. Note that any delay in the claim intimation can lead to a complicated claims settlement process and even rejection of your claim.
