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Understanding third party car insurance
Third party car insurance is mandatory under the Motor Vehicles Act, 1988. This government-mandatory requirement ensures that policyholders will be compensated with an agreed amount to cover their financial loss or damage in the event of an accident. This insurance type also covers any legal liabilities from the accident causing third party bodily or property damage. Third party insurance coverage benefits you in many ways. It provides financial protection against liability arising from accidents and compensates third party damage, including pedestrians, drivers or passengers. This protection helps you bear financial losses and safeguards your assets against legal liabilities.
What Happens If You Only Have Third Party Insurance During a Major Accident?
If you only have third-party insurance and are in a major accident, the insurance will compensate for liabilities caused to the third party- damage to the property, death or injury. For your own vehicle, no expenses will be provided by the insurance company. Third party insurance is mandatory as per the Motor Vehicles Act of 1988.
Third party insurance claim procedure
To understand how to claim third party insurance for car comprehensively, check out the following steps: 1. According to the agreed policy terms, the policyholder must inform the insurer about the accident within the stipulated time. 2. Filing an FIR at the nearest police station and submitting a copy of the FIR to the insurer is necessary. 3. Fill out the form and add the necessary documents to claim for the third-party losses. However, the third party insurance claim process gets delayed in case of death or permanent disability to a third party. 4. There is a special court - the Motor Accident Claims Tribunal, where the crime needs to be registered. 5. The court hears both parties and analyses the proof before fixing any liabilities. 6. The court will decide the final compensation. After which, you can contact your insurer and file a compensation claim form.
What is the Claim Process for Third Party Car Insurance?
2. Submit copies of the driving licence, RC book, FIR and Insurance policy. 3. The victim or their family members may file a claim with the Motor Accident Claims Tribunal (MACT).