Stay informed about third party claims :: Business Line

Third party motor insurance is a liability insurance which compensates the insured for any damages made to a third party’s asset, health or life.

Anuj was walking down the street to run a few errands. Unaware of a car coming from the wrong direction on a one-way street, he was hit. He was taken to the nearest hospital by the car driver, but he had to bear the cost of the treatment. Anuj decided to file a case against the car driver. But is there a remedy by which he could claim the amount spent on his treatment?

Well, Anuj is eligible for compensation from the car driver on account of negligence. The car owner is eligible for cover from an insurer in the form of a third party claim, provided that the car owner has a valid motor insurance policy. This forms the basis of a third party cover which is mandatory according to the Motor Vehicles Act.

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WHAT IT IS

Third party (TP) motor insurance is a liability insurance which compensates the insured for any damages made to a third party’s asset, health or life. It is a form of insurance that is mandatory under the Motor Vehicle Act to be taken by everyone who owns a vehicle, as opposed to an Own Damage cover which is optional. Taking TP insurance is most beneficial as it can reduce your financial burden in case of any untoward motor incident caused by you unintentionally on the street.

In order to decide the quantum and favouring party in case of a third party claim, a special court called Motor Accident Claim Tribunal (MACT) has been set up, which has the power to announce decisions pertaining to TP claims.

Third party claim is one of the most common type of claim in case of motor insurance. Since the settlement of a TP claim involves legal procedures with MACT, the foremost requirement is to inform the police and lodge an FIR. At the same time, make sure that you inform your insurer too about the loss.

Some of the documents required in case of a TP Claim are a claim form duly signed by you (the insured), copies of your driving license, FIR, vehicle’s RC, stamp (required in case of company registered vehicle’s original documents), permit and fitness, in case of commercial vehicle.

To facilitate speedy processing of your TP claim with the insurer, take care of the following:

Take a picture of the accident/damage immediately before moving the vehicle from the accident spot, especially, in case of another vehicle or property being involved. You should narrate the incident correctly and in as much detail as possible in the claim form.

Make sure the injured is taken to the nearest hospital. If making a payment to the hospital on their behalf, inform your insurer of the same.

File your TP claim at the earliest as this enables a fair claim settlement, mainly because claims of this kind take a lot of time to get settled, due to the nature of the situation. Although there is no written rule for this, it is advisable to inform your insurer within 24-48 hours of the accident.

THINGS TO KNOW

If your documents are in order, approach the insurer directly. Doing so will help save on time through the procedure without the intervention of a court of law. Also provide your complete correct contact details.

In addition to proper documentation, it is advised that you do not fall for far-fetched claims and false promises made by middlemen or touts. These middlemen may offer attractive compensation, but it is important that you do not believe these details blindly. Always check with your insurer regarding the same.

Even if the case is pending in court, it is still advisable for you to get in touch with your insurer. A regular follow-up will keep you updated on the status of your claim, which may come sooner than the intimation from the court.

(The author is Head – Motor Insurance, Bajaj Allianz General Insurance)