Insightful Five: Key Things to Know About Third-Party Motor Insurance

by jeet

In India, it is legally required for every registered vehicle with the Regional Transport Office (RTO) to have valid motor insurance. Vehicle owners are presented with two options: comprehensive or third-party insurance. The latter, a motor vehicle third-party liability insurance policy, is the minimum legal requirement and is one of the more affordable insurance plans that comply with the law. This discussion delves into third-party insurance top five crucial aspects.

Motor Insurance For Third Parties:

The Motor Vehicles Act of 1988 requires third-party coverage in motor insurance, providing compensation when the insured is legally responsible for harm or damages to a third party. For instance, if at fault in a collision, liability to the other driver is covered, but damages to your own car are not included. Claims are subject to terms and conditions set forth under the motor insurance policy.

Contents Of A Third-Party Automobile Insurance Policy:

Third-Party Motor Insurance Provides Coverage For The Following:

  • Harm To A Third Party’s Body: In the event of an accident, injuries sustained by individuals in the other vehicle are covered.
  • Unintentional Passing Of A Third Party: If the accident results in a fatality, the policy compensates for the loss suffered by the deceased’s family.
  • Harm To Property Owned By Third Parties: Damage to the property of individuals not involved in the accident is included in the coverage.
  • Complete And Permanent Disability Of A Third Party: The policy extends coverage for disabilities resulting from the accident. Claims are subject to terms and conditions set forth under the motor insurance policy.

The coverage amount of third-party two-wheeler insurance for damaged or destroyed property varies between insurers. Claims are subject to terms and conditions set forth under the motor insurance policy.

Procedure For A Third-Party Motor Insurance Policy:

  • Application: The victim, property owner, or legal representative of the deceased files a third-party claim against the vehicle owner.
  • Police Complaint: After filing the third-party claim application, an FIR (First Information Report) must be filed with the police, including the vehicle’s registration number, driver’s license information, and witness contact details.
  • Tribunal For Claims: The claimant initiates a case with the Motor Accident Claims Tribunal, with jurisdiction based on the accident location or petitioner’s residence.
  • Documents: Original expense records and a copy of the FIR are presented to verify damages or loss.
  • Coverage Amount: The insurance company pays the awarded amount after court determination.

Where And How To File A Claim:

The first step after an accident is to notify the insurance company. The injured party, property owner, or representative can submit a claim application. The insurance company manages the claim process, which may involve tribunal arbitration to ensure adequate compensation for medical expenses or the insured’s demise.

Exclusions: What Is Not Covered By Third-Party Motor Insurance:

Several situations are not covered by third-party motor insurance, such as:

  • Damage To Your Car: The policy does not cover injuries or property damage sustained by you or your vehicle in a collision with another car.
  • Multiple Claims: Victims cannot rely on the insurance company to compensate beyond the court-awarded amount.
  • Terms And Conditions: Strict adherence to the insurance company’s terms is necessary for claim acceptance.

Every car owner in India should comprehend the concept of third-party vehicle insurance, understand exclusions, be familiar with the claim procedure, know the policy coverage, and understand where and how to file a claim.

*Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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