How Do Motor Insurance Third-Party Claims Work?


Accidents on the road are responsible for the passing away of thousands of individuals each year. It is common knowledge that the roads in India are not in the best condition, which makes the likelihood of being involved in a collision significantly higher. It doesn’t matter what kind of vehicle you drive; having motor insurance coverage is necessary to protect yourself and your assets from financial loss in the event of an accident.

According to the Motor Vehicle Act of 1988, all people who own cars must obtain an auto insurance policy covering third-party liability. A motor insurance calculator can calculate the premium. Purchasing auto insurance is not only required by law, but it is also essential to have coverage from a defensive driving standpoint.

What exactly is covered by my Third-Party Insurance?

An affordable coverage known as third-party car insurance protects pedestrians, passengers who do not pay the fare, and passengers who do pay the fare in the event of their injury or passing away due to an accident. Three parties are involved in car insurance, known as third-party coverage, which includes:

  1. The owner of the insured vehicle
  2. Insurance company
  3. Any person whose property is damaged as a result of an accident

They must be familiar with its operation if they own a vehicle and pay a premium for third-party auto insurance. It is common to refer to third-party auto insurance as “act-only” insurance. In the event of an accident, this sort of insurance does not cover damages to the policyholder or their car. It will only compensate for damages caused to a third party, who must file a claim.

What are the steps to file a compensation claim?

  1. The first step in claiming third-party insurance is to file a first report of injury (FIR) at the police station that is most convenient for you and receive the charge sheet. A specialised court known as the Motor Accident Claims Tribunal is responsible for taking the necessary steps to register the offence.
  1. Lawsuits brought by third parties alleging that the first-party insured individual was responsible for damages to their property, health, or passing away may be brought in the jurisdiction in which that individual resides. Before determining who is responsible for what, the court listens to both sides of the dispute and reviews the evidence.
  1. If there was property damage, you must provide the report from the inspection officer, the surveyor, and the original bill to calculate the entire amount of loss.

Be it motor insurance online or offline policy, filing a claim for coverage under a third party’s auto insurance is simple and uncomplicated. You are required to behave appropriately as follows to file a claim with ease (these are crucial steps so ensure you memroize them):

  1. The first thing you need to do is establish that the party against whom you are filing a claim was at fault for the damage it caused.
  1. Both parties will make every effort to demonstrate that the other party is at fault, and because of this, it can be challenging to demonstrate that one side was at fault and make a claim for compensation for the damage.
  1. The decision about the amount of compensation is not made until after the court has issued its ruling.
  1. If the payment granted is insufficient to repair the damages, you may not submit a claim for the same damages with your insurance company. *

One can easily avail of motor insurance online as it is required by law in India to have insurance that covers third parties.

* 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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