Introduction
Accidents can happen to anyone, anytime and even to the most careful drivers. It could be a small scratch or a major car crash; it is not hard to deal with it. But in such times, having third party liability insurance helps big time. However, many people aren’t sure of how exactly to make a claim, what to do and what to avoid. If you are also on the same boat, don’t worry! This quick guide will tell you what third party insurance covers and how you can file a claim after an accident.
What is Third-Party Insurance?
Before we discuss the claim process, let’s understand what it is. Basically, third party insurance is a compulsory form of motor insurance in India and all drivers need to have it. If at all your vehicle causes damage to another person, their vehicle or property, this plan will be your financial protection. Here, the “third party” is anyone who is affected by your vehicle in an accident, except you or your insurance company.
Your third party liability insurance policy will pay for:
- Injury or death of another person because of your vehicle.
- Damage to the property of third-party like a car, scooter, wall, fence etc
However, you must know and remember that insurance for third party liability will never cover any damages to your own vehicle or injuries that are caused to you. If you want complete coverage, a comprehensive policy is what you need
When Can You Claim Third-Party Insurance?
A third party insurance claim can be made in these situations:
- If physical injury or death is caused to another person in an accident.
- If your vehicle has caused damage to someone else’s property or vehicle.
For example, if your car hits another vehicle, then your third party liability insurance will cover the repair cost. Or maybe for covering medical or legal compensation if a pedestrian gets injured.
Step-by-Step Process to Claim Third-Party Insurance
You need to follow a few steps for filing a third party liability insurance policy claim. Let’s go through them:
Step 1: Inform Your Insurance Company Immediately
Without wasting any time, the first thing you should do after an accident is inform your insurance company. This better be done within 24 hours because delays might weaken your claim. You can go to their helpline or mobile app and quickly report the accident.
Provide them with important details like:
- Date, time and accident location
- Describe exactly what happened
- Inform about the vehicles and people that were involved
Step 2: File an FIR at the Nearest Police Station
Go right away to file an FIR (First Information Report), especially if there’s an injury, death or major damage to property, because without it, your third party insurance claim might be rejected.
- Reach the nearest police station and explain what happened in detail.
- Don’t miss mentioning all vehicles and people involved.
- Do keep a copy of the FIR to be used during the insurance claim.
Step 3: Collect Evidence from the Accident Site
Having proper evidence makes your claim stronger. All these details will help your insurer to evaluate the whole situation and process your claim faster:
- Take photos or record videos of the damaged vehicle and the overall accident scene.
- Note the registration number of the vehicle, details of the driver’s license and even contact information of the witness, if there are any.
Step 4: Register the Case with the Motor Accident Claims Tribunal (MACT)
Basically, the insurer doesn’t directly settle the third party liability insurance. It’s handled through the Motor Accident Claims Tribunal (MACT). This is a legal body that ensures that both the vehicle owner and the affected party are treated with fairness.
Here’s how it works:
- The affected third party files a claim with MACT.
- MACT reviews the case from both parties and decides the compensation amount.
- Your insurer then pays you as per the tribunal’s decision.
Step 5: Submit the Required Documents
You will need to submit certain documents to process your insurance for third party liability claim. Have these documents ready to avoid settlement delays:
- Copy of your insurance policy
- FIR Copy
- Driving licence of the person who was driving
- Vehicle’s registration Certificate (RC)
- Photos of the damaged vehicles and the accident area
- Any notice from court or MACT (if applicable)
Step 6: Cooperate During the Investigation
Your insurance company may also appoint an investigator on the case. They will inspect the damages and verify the details of the incident. Here, you need to give your full cooperation. Provide them with honest information and access to your vehicle. This keeps the process transparent and helps your insurer smoothly settle the claim.
Step 7: Tribunal Decision and Claim Settlement
Once the MACT reviews all details, the compensation amount to be paid is decided. After that, your third party liability insurance policy will cover this compensation. The amount will be paid directly to the third party and not to you.
Checklist of Documents Required for Third-Party Insurance Claims
Make sure you don’t miss anything from the following:
- Copy of third party insurance policy
- Copy of FIR
- Driving licence
- RC of the Vehicle
- Photos of the Vehicle
- Witness statements (if any)
- MACT forms and legal notice (if they are issued)
In fact, you’d better keep both digital and printed copies for convenience and last minute requirements.
Common Mistakes to be Avoided When Filing a Claim
Even a small error can lead to the rejection of your claim and there are many such cases. Be careful and avoid these common mistakes:
- Not informing the insurer ASAP.
- Skipping filing the FIR.
- Providing incorrect details or false statements.
- Failing to collect proper evidence at the accident spot.
- Trying to settle privately and not involving the insurer.
How Long Does It Take to Settle a Third-Party Claim?
We just learned that insurance for third party liability claims have to be processed through the MACT proceedings. This is the reason that they tend to take a bit longer than own-damage claims. Depending on how complex your case is, you can expect the settlement to take anywhere from a few weeks to some months. Please stay patient all this while.
However, you can actually help speed up the whole process by submitting documents on time and cooperating with your insurer
Can a Third Party Claim Be Rejected?
Yes, of course. There are certain conditions that must be met. Any mistake or failure here can get your claim rejected:
- The driver didn’t have a valid licence at the time of the accident.
- The vehicle didn’t have a valid third party liability insurance.
- The accident was either intentional or happened because of drunk driving.
- FIR or other necessary documents are not there.
This is why it is told to make sure that your paperwork and compliance are up to date to avoid rejections.
Conclusion
You might think that it would be so complicated to claim third party insurance after an accident but actually, once you understand how it’s done, it’s quite clear. Just stay calm, follow the given process and keep your insurer informed throughout. Each discussed step ensures that the affected party is fairly compensated and you don’t bear the financial burden.
At PolicyWings, we make it easier for you to choose the right third party liability insurance policy and even guide you through claims. Trust us to make insurance simple, transparent and stress-free for you.
