Here’s How to File a Third-Party Car Insurance Claim

Accidents are not always the result of your negligence. You may be driving safely and following all of the rules, but there may be other cars on the road who are not as cautious and end up causing an accident. To protect your financial interests in such mishaps caused by someone else’s negligence, the Indian government has mandated that all cars on Indian roads purchase basic third party Car Insurance plans.

Fortunately, the majority of people do not need to file a claim for this insurance. However, unforeseen accidents involving your vehicle or a collision with another vehicle may necessitate the use of this coverage. In such cases, if you or your property suffers damage as a result of a four-wheeler, you have the right to seek compensation from the owner of the vehicle.

A third-party car insurance claim is a very simple procedure that is easily accessible. Let’s get into the specifics of this insurance policy, which will help you save time and effort when filing a claim!

Why Not Just Make A Claim Against Your Insurance Policy

If you have comprehensive third-party car insurance, you can file a claim against your policy to receive compensation. However, if the accident was not your fault, it makes no sense to discard any NCBs you’ve accumulated and add them to your claim history. Third-party insurance is required because, in such cases, it is the third party’s liability to cover the damages and injuries you sustain – which is why you should make a claim against their third-party insurance rather than your policy.

Complex Claims Process

Making a third-party motor claim is difficult. The complicated course begins with filing an FIR with the police and obtaining a charge sheet, which is a massive task in and of itself. Following that, one must contact a motor claims lawyer, who will file a case in a special court known as the Motor Accident Claims Tribunal. Road accident compensation claims cannot be decided in civil courts. The case must be filed with either the tribunal with jurisdiction over the area where the accident occurred or the tribunal with jurisdiction over the area where the claimant or defendant resides. Following that, the court hears both sides, examines the evidence, and determines liability. If the decision is favorable to you, you will be compensated for your loss.

However, this three-step process is not without complications, as rules vary depending on the scenario and the insurance coverage that both parties have. As a result, the ground reality is far more complicated than it appears on paper.

Here are the various permutations and combinations of situations in which A’s car was damaged in an accident by B’s car, as well as the legal solution(s) in each case.

When A has only a basic third-party insurance

Those who do not have comprehensive motor insurance are on their own because they can only seek compensation through the third-party insurance of the other party, in this case, B. Your insurer will not compensate you or assist you in filing a complaint because your insurance agreement with your insurer is solely for your liability to any third party for damages. In this case, however, your car has been damaged, which is not covered by your third-party contract. You are the third party in this case and can only seek compensation through B’s third-party insurance. So, unless you have your own damages coverage, the only way to be compensated is to locate the other vehicle and file a complaint against the other party. The difficult task here is proving the other party’s fault in court.

Only after the victim establishes negligence will there be a case against the wrongdoer (B) and his/her insurance company. As a result, you cannot be certain of receiving any money until the court rules in your favour. Furthermore, a favorable decision does not always imply that you will receive the full amount requested. Only the amount awarded by the court will be paid by the other party and his insurer. Furthermore, if you receive less than what you claimed, you will be unable to claim the balance damage compensation from your insurer under your ‘own damage’ policy because compensation for the same damage cannot be claimed more than once under the law. The preceding procedure would be the same whether B has comprehensive motor insurance or only third-party insurance.

So How Do You Make A Claim?

The first step, similar to a comprehensive third-party car insurance policy, would be to notify the police and file an FIR. Remember to remain calm and to properly report the incident to the police. See if you can find anyone who witnessed the accident and agrees that it was the fault of the third party. When recording a statement, try to have them present.

  1. Find A Lawyer:

Once you’ve filed the FIR, you’ll need to find a lawyer to file the case with the Motor Accident Claims Tribunal. The case can be filed in the Claims Tribunal of the jurisdiction in which the accident occurred or in which the plaintiff or defendant resides.

  1. Leave it To The Court:

Both sides of the argument will be heard by the court. They will go over any available evidence and pay any attention to witness statements. The remuneration will be announced once they have reached an agreement. Whatever the court decides, the third-party car insurance provider will be obligated to pay.

  1. Your Other Option – Subrogation:

Only if you have comprehensive insurance should you approach your third-party car insurance provider and ask them to fight the case on your behalf. If your third-party insurance company accepts your request, they will proceed to seek compensation from the third party’s insurance company.

As you can see, the third-party car insurance claim process differs from a standard claim. However, if you are aware of your options and have a general understanding of the process, you will be in a better position to deal with the situation. If you need more information or clarification on any of the points in this article, contact insurance provider – they should be able to provide a better explanation.