Everything About Third-Party Car Insurance

In a country like India, where the use of motor vehicles is increasing day by day, the number of accidents happening has also gone up, and the fatality rate on account of accidents is also rising. Keeping all these factors in mind, it is made mandatory by Motor Vehicles Act to have third party insurance. Without valid car insurance, you cannot drive your vehicle. Though it is quite common, many have a question, ‘what is 3^rd party car insurance?’

What is a third party car insurance?

In most simple words, if your vehicle meets with an accident and you need to pay the cost of repairs of the other party’s vehicle and medical expenses of the injured, then this amount shall be paid by the third party insurance company. You have to submit a claim of costs, and the insurance company shall verify and pass your claim amount. After the occurrence of the unfortunate event, it is necessary for the person who has taken a policy to inform the insurance company about the occurrence of such an event. Third party insurance is a contract of indemnity where the insured gets an amount equal to the financial loss suffered by him.

Types of Car Insurance

From the various types of car insurance, we now know about what is a third party car insurance but who is the third party is also a question commonly asked. So for that, we need to understand the terminologies of third party car insurance. First Party: The person who purchases the policy is called the first party. He is the person who owns the vehicle. Second Party: The person who makes suitable the financial loss suffered is called the second party. In our case, it will be the insurance company. Third-Party: The person to whom damage is caused is called a third party. He raises the claim for damage caused by the first party.

What is the process one needs to follow in case of an accident?

Inform the insurance company

It is necessary to inform the insurance company that the accident has occurred within the stipulated time specified in your policy.

File FIR

It is compulsory to file FIR with the police station in respect of the occurrence of the accident. It is also necessary to attach a copy of the FIR filed with the claim.

Filing of claim

The claim has to be filed with the insurance company attaching all the documents required. These documents shall state the date and time of the accident and proof of the damage suffered.

Verification by surveyor

The surveyor has to make sure that the events have occurred as stated in the documents and the estimated cost of damages is the same as stated. It is only after his report; the claim gets processed.

Settlement

After submission of the report by the surveyor, the claim is settled, and payment is made by the insurance company. What all things are included and excluded from third party car insurance? Inclusions Any claims related to compensation for loss of life, property damage, or personal injuries can be claimed under third party car insurance. Exclusions

• Cases of drink and drive are not covered.
• Cases where the driver is underage for driving
• Cases where the driver doesn’t hold a valid driving license
• Cases where the accident is a deliberate act
• Cases where the vehicle is used for illegal purposes
• Cases where a claim is already made once under this policy. It is not possible to claim twice under the same policy.

Importance of third party insurance

• It is necessary to have third party car insurance as per law. Hence taking third party insurance helps you in compliance with rules and regulations.
• If you don’t have third party insurance, then you will have to bear all the financial damage from your own pocket. This reduces the financial risk related to accidents.
• Though the cover amount is lower, it still gives you peace of mind that you will not have to pay the damages out of your savings on the occurrence of any unfortunate event.

FAQs:

Is filing of FIR necessary for lodging the claim? In case of road accidents, it is necessary to file FIR and submit a copy along with proofs related to the claim. What documents are required to file a claim under third party car insurance? You will need a description of events along with the date, day, and approximate time of the events, details of insurance and policyholders, witnesses, injuries suffered, FIR filed at the police station. The documents required may vary from provider to provider. Does third party insurance give any compensation for the damages suffered by my vehicle? Making good the financial loss suffered by you in the accident pertaining to the other party is what 3^rd party car insurance is. It doesn’t cover expenses or losses pertaining to your own vehicle.