How to Claim Compensation under Third-Party Car Insurance

Every year, thousands of people lose their lives in road accidents. It is a known fact that the condition of roads in India is not the best, which increases the risk of accidents. No matter, the type of car you drive, it is paramount that you buy car insurance to get protection against the damages suffered due to accident. 

As per the Motor Vehicle Act, 1988, it is mandatory for all car owners to have a third-party car insurance policy. Apart from being a legal obligation, having a car insurance cover is vital from the safety point of view. The insurance gives you much needed financial protection against unforeseen risks. 

What is Third-Party Insurance?

Third-Party car insurance is an affordable policy that covers incidents of injury or death of pedestrians, non-fare paying & fare-paying passengers caused due to accident. In third-party car insurance, there are three parties. These are:

1. Owner of the insured vehicle

2. Insurance company 

3. Any individual who suffers damage due to accident 

If you are a car owner and are paying a premium for third party insurance, you must know how the Third-party car insurance works. The Third-Party Car Insurance, which is also commonly referred to as 'act only' insurance, does not cover the damages suffered by the policyholder or their vehicle. It only pays for the damages to the third party and the claim must be filed by the third party. 

How to claim for compensation?

1. The primary step of claiming Third-party insurance includes filing FIR in the nearest police station and collect the charge sheet. There is a special court that is Motor Accident Claims Tribunal where the crime needs to be registered. 

2. The cases of the third party for the damage of property, health or death can be filed in the area where the insured first-party individual resides. The court hears both the parties and analyses proofs before fixing the liabilities. 

3. If it is a case of property damage, the report from inspection officer, surveyor and the original bill to estimate the total loss is mandatory.

The process of claiming third-party car insurance is easy and straight. You must follow the rules. 

1. The first task is to prove the mistake of the party you are claiming against the damage caused. 

2. Each party will try their best to prove the other party's fault, and sometimes this makes it difficult to prove the fault of one party and claim for the damage.

3. The compensation is decided only after the verdict is declared from the court. 

4. In case of payment being inadequate to fix the losses, you can't claim your insurance company for the same losses.

Having third-party insurance is mandatory by law in India. The Motor Vehicle Act states that no car should be allowed to move on the road unless you hold proper insurance. 

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