A guide to third party car insurance and liability claims

Third-party car insurance is also known as third-party liability insurance that helps you cover against liabilities if any damage or accidental loss is caused to a third-person property, vehicle, or person. Without mandatory third-party insurance, it is illegal to drive a car. This might lead to legal involvement and a hefty fine. Though many people own this plan, they do not raise a claim. This might be due to the involvement of much nitty-gritty in the process. 

This article will walk you through the easy process and the documents required to file a claim. 

 How to make third-party liability car insurance claims?

You can file a third-party insurance claim in case of –

Damage to someone else’s vehicle
If you have an accident and damage someone else’s vehicle, you can settle the matter by filing a third-party insurance claim at the Motor Accident Claim Tribunal. Here your vehicle is at fault, so the insurer will not be much of a help in getting the claim. You can avail of the cover for third-party damage or death up to Rs. 7.5 Lakhs. Here’s how you can do it –

• The third party will be required to lodge an FIR at the local police station and get a charge sheet (you can also do it).
  
• Notify and share a copy of the FIR with your car insurance provider to make a claim.
  
• All the third-party claims are settled in a Motor Accident Claims Tribunal (MACT). 
  Hence, the claims must be made at the local tribunal, which will finalise the claim amount.
  
• If any compensation is to be made, some insurance providers take care of that from their end. Hence, you do not have to pay any charges. 

Damage to your vehicle by third-party 

If a third party damages your car or you have suffered an injury from the accident, you can directly file a claim from your insurance provider, as they promise to cover you for the damage to your vehicle. Here is what you can do to file a third-party liability claim –

• You must file an FIR and obtain a charge sheet from a local police station.
  
• You must provide evidence of the third-party being at fault, like – medical bills, doctor’s certificate, hospital discharge certificate (in case of a severe accident).
  
• Present some witnesses who can back you up with the statement. 
  
• Get the third-party car insurance details of the owner to raise a claim.
  
• File for compensation claim case in the Motor Accident Claim Tribunal and hire a motor insurance claim lawyer (if necessary).
  
• You can always opt for subrogation, where the insurance company pays for the damage, and then you grant them the right to bring legal action against the party for the damage caused to recoup the money paid to you. 

Under what circumstances can you raise a third-party claim?

You can raise a third-party claim under the following circumstances –

• In case of an accidental injury, permanent partial or total disability, or loss of income when the person cannot earn due to the bodily injury or disability caused due to the accident – you can claim for hospitalisation expenses. 
  
• If you, as a policyholder, die, your family (children or spouse) is eligible to raise a claim depending on your income. Also, they can claim for the injury that caused the death. 
  
• If the car or vehicle is damaged, you will need an inspecting officer’s report, surveyor’s report, original bills, and other documents as requested by the local tribunal or the insurance provider. 

What documents are required to file a third-party liability claim?

To file a third party insurance liability claim, you will need the following documents –

• Completely filled and signed claim form
• FIR copy
• Valid driving licence copy
• Copy of the first two pages of the policy documents
• Copy of the RC (Registration Certificate)

To file a claim, you might also need to provide photographic evidence, a surveyor’s report, and a letter from the police. 

Things you need to consider before filing a third-party insurance and liability claim

To file a third-party car insurance claim, you must keep the following things in mind –

• Provide all the required documents: Always provide authentic and correct documents to avoid the rejection of the claim. This is because before processing the claim, the insurance provider goes through and validates the documents to check if they are fake, false, or forged. If they find out the document is fake, they might sue you and terminate your policy. 

• Read the policy document thoroughly: Not reading the policy document thoroughly can lead to the rejection of the claim. Reading the policy documents will help you know the terms and conditions of the policy, along with the inclusions and exclusions. 

• Keep all the invoices and receipts: You should present the invoices and the bills, such as medical bills, damage repair receipts, etc., to the local tribunal or the insurance providers to raise a claim. Failing to do so, might result in the rejection of claims. 

• Driving under the influence: If you were driving under the influence of alcohol or any recreational drugs, the insurance provider or the local tribunal would immediately reject the claim raised. This might also lead to the involvement of police, and you will be jailed for using drugs while driving. 

The government mandates third-party car insurance. So, you must get one if you still haven’t. Also, you must claim the insurance at the time of need. The process is very simple and does not require much effort. All you need to do is – keep all your documents handy, along with a proper narration of what has happened at the accident site. Also, always remember that if you raise a claim against third-party liabilities, the vehicle in question should be at fault, or the claim might get rejected. 

Disclaimer – The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.