The Indian government has made having third party insurance for two-wheeler owners mandatory. A third party insurance, to begin with, is basically a form of liability insurance purchased by a person to protect themselves against any claims made by a third party. For example, imagine you happen to meet with an accident and damage a stranger’s vehicle. A third party insurance will protect you against any financial claims the individual makes against you.
Just to be clear, in this case, the person buying the policy is the first party, insurance company, the second, and any person making a claim is the third party. In this page, you will learn everything about Third Party Insurance.
What are the Things That Constitute Third Party Insurance?
Third party liability insurance covers a number of things. Here are a few things it protects you against:
- Damage to a third party’s property: In case of an accident caused by you, the insurance policy will cover the damage. However, getting a claim settled in this case is a long drawn-out process. To begin with, you will need to get a surveyor to submit their assessment report which basically lists out the total value of the loss incurred. Also, to expedite the process, you will need to submit all the documents and bills provided by an authorised service station.
- Injury or death of a third party: In the event of any injury or death due to any accident, you can claim medical expenses, loss of regular income, and also compensation for permanent disability, which you would have to pay the person affected.
- Accidental death of the two wheeler insured/rider: If an individual dies due to an accident, their nominees are allowed to claim compensation for income lost.
- Permanent total disability of the insured two wheeler owner: If a permanent disability occurs to the person insured, they can claim for those expenses.
One thing worth noting here is that a third party insurance doesn’t offer cover against any damage sustained by your vehicle.
How can One Claim for Third Party Insurance?
Here’s a process an individual needs to follow to claim third party insurance:
- Application: Any third party can claim insurance against a two-wheeler owner by first applying for it with the insurance company.
- Filing a police complaint: Once the application is filed, an FIR needs to be filed at the nearest police station. The FIR should include Information regarding the registration number of vehicles involved, license number of the perpetrator, and name and contact details of a witness.
- Filing a plaint with the claims tribunal: After filing a complaint, the claiming party needs to file a case with the Motor Accident Claims Tribunal, who are responsible for clearing any claim requests. While filing this request, the claimant should also submit supporting documents to authenticate the claim.
- Claim settlement: Once the court decides on the amount, all the costs should be borne by the insurance company if any death or injury occurs.
All in all, third party insurance is a boon for a country like India that witness over 1.5 lakh accidental death every year. If you don’t already have one, you need to get one right away so that you don’t burn through your savings.