Buying motor insurance is mandatory for all cars on Indian roads, with the liability only (also known as third party insurance) being the most basic insurance policy necessary.
While most of us might not need to file a claim due to safe driving and perhaps good luck, there could an occasion when you as a pedestrian might have to file an insurance claim due to an incident involving a four wheeler.
If you are involved in an accident/any incident where you have suffered damage to yourself or your property due to a four wheeler, the law permits you to file a claim for compensation against the owner of the vehicle involved.
While the claims process has been simplified by insurance companies, it?s always better to know the in?s and out?s of how to file a claim so you?re not running around when it?s time to file a claim.
What Is Third Party Insurance?
At the outset, a little background on what third party insurance is. Third party insurance or liability only insurance is linked to general insurance. Third party insurance is the most basic type of insurance offered and it is mandatory to have this by law. Thus, all vehicle owners are required to have at least this basic insurance policy.
Third party insurance covers any damage done to a third party or a third party?s property by the insured vehicle. The ?third party?, in this case, is anyone other than the insured vehicle?s owner (first party) and the insurance company (second party). In the event your car is involved in an accident or collision, the insurance company will take care of the cost resulting from damage done to the third party?s person or property.
Claims Filing Process
In the event that you have suffered a mishap due to an accident/collision with a four wheeler, you or your dependents can choose to file a claim against the owner of the particular vehicle. If your vehicle is involved in an incident resulting in death or damage to a third party, the affected party could choose to file a claim against you, which will be settled by your insurance company.
The claims filing process would differ based on the nature or consequences of the mishap. Given below is the claims filing process for the major coverage afforded under liability only cover:
- In the event of a mishap causing property damage to a third party, the individual can file a claim through the Motor Accident Claims Tribunal within the jurisdiction of the mishap.
- The claimant should obtain the insurance details of the vehicle and file a First Information Report (FIR) at the nearest police station stating the sequence of events that transpired.
- The insurance details and the FIR are to be submitted when the claim is being filed.
- Based on the tribunal?s ruling, compensation will be provided to the claimant basis the documentation.
- According to law, the maximum amount that can be provided as compensation for property damage is Rs.7,50,000.
Injury, Disability or Death:
- In the event the accident/mishap results in the injury, disability or death of a third party, the individual (or dependents in case of death of the individual) can file a claim for compensation from the vehicle owner.
- An FIR is to be filed at the police station in whose jurisdiction the accident took place, clearly detailing the sequence of events and the parties involved.
- The car owner?s insurance details are also to be obtained.
- The above information is to be presented to the Motor Accident Claims Tribunal in whose jurisdiction the accident/mishap occurred.
- The tribunal would deliver a ruling based on the documentation submitted.
- In some cases, the vehicle owner might attempt an out of court settlement, which is also permissible by law.
It is to be noted that the claimant is required to submit all original documentation at the time of filing the claim. Additionally, the claimant is to notify the insurance company of the claim being filed to ensure the insurer is also aware that a claim has been filed.
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GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017