As per the law, a valid third-party insurance policy is mandatory for all vehicles running on Indian roads.
As per the Motor Vehicles Act of 1988, third-party motor insurance is mandatory for all types of vehicles running on Indian roads. If someone is caught driving without a valid third-party insurance policy, he/she may have to pay a fine of up to ₹2,000 or face imprisonment for up to three months, or both.
Hence, buying a third-party bike insurance policy is not a choice for two-wheeler owners in India but a mandatory obligation by law. But, do you know what exactly is third-party insurance, what are its benefits, and how to claim third-party insurance?
In case you don't, this article is for you. Continue reading.
What is third-party two-wheeler insurance?
Third-party two-wheeler insurance protects the owner-driver of the insured vehicle against any legal liabilities that may arise in case his/her vehicle causes death, bodily injuries, or property damages to an unknown third party. It means that in case an insured vehicle gets involved in an accident and causes financial loss or damage to a third party, the insurance provider takes care of the legal expenses.
As stated previously, a third-party insurance policy is mandatory for all bikes and scooters running on Indian roads. A rider must carry the policy document all the time while riding his/her two-wheeler. The Insurance Regulatory and Development Authority of India (IRDAI) fixes the premium amount for third-party insurance for different vehicles.
What is covered by third-party insurance?
The mandatory third-party insurance covers legal liabilities that can be claimed by a third party only when the owner or driver of the insured vehicle is at fault. It provides coverage for the following conditions:
- Cover for third-party death or bodily injuries
When an insured two-wheeler causes bodily injuries to a third party, with the rider of the two-wheeler at fault, the third-party insurance will cover the hospitalisation or treatment costs of the injured person(s). In case the insured two-wheeler causes the death of a third party, the insurer will pay a compensation amount (as decided by the tribunal court) to the victim's kin.
- Cover for third-party property damage
When an insured two-wheeler gets involved in an accident and causes damage to the surrounding property, the third-party insurance provider pays for financial losses to the victim. There is no limit on the maximum coverage amount for death or injury, but for compensation against property damage, the maximum coverage is capped at ₹7.5 lakhs.
- Personal accident cover
Along with the basic liability cover, you can also include a personal accident cover of up to ₹15 lakh for the owner-driver of the vehicle. It means that in case the owner of the two-wheeler gets injured during an accident, the vehicle's insurance will cover the costs required for his/her treatment or hospitalisation.
How to file a third-party insurance claim?
The claim process for third-party two-wheeler insurance is a bit complex. You need to remember that the claim is entertained only if the victim or claimant can prove that the owner or driver of the insured vehicle was at fault, due to which the accident took place. A special tribunal court decides whether the insurer should pay the compensation to the victim and how much amount should be paid to him/her.
Below are the steps in which you can register a third-party insurance claim:
Click photographs or record visuals of the damages suffered by you.
Note down the registration details of the vehicle which caused the damage. If possible, also note the contact number and details of the third-party insurance policy.
Check if someone witnessed the accident and note their contact details. These eye-witnesses will be of great importance later.
Register an FIR at the police station under whose jurisdiction the accident took place. You need to mention the exact details of the accident in your FIR.
Register a case with the Motor Accident Claims Tribunal court with the help of a lawyer. You need to prove in the court that the vehicle owner was guilty by furnishing relevant documents, photos and videos, and eye-witnesses.
The tribunal court will decide the compensation amount (if at all) the insurance provider needs to pay to you.
Things to keep in mind while filing the claim
Chances are that the tribunal court might reject your claim if it does not find it valid. Below are the things you should keep in mind while the third-party insurance claim:
- Avoid running from the accident spot.
- Try to take as many photos and videos before letting the vehicle(s) move.
- Be honest. Don't exaggerate the accident to get your claim passed.
- Seek immediate medical help in case of serious injuries.
- Avoid any monetary settlement at the accident spot. Take the legal route.
- Collect as much evidence as you can to substantiate your claim.
- Be patient with the process. Don't get panic or angry.
- Co-operate with different authorities at different stages.
- Ensure proper documentation through the claim settlement process
Though the purpose of the third-party insurance is to protect the third party, the ratio of claim settlement remains very low. Besides, a third-party insurance claim is a complex and time-taking process. You need to be diligent and spot-on with all the documents and visual evidence to substantiate your case in the tribunal court.
If you have a comprehensive bike insurance cover, you may not need to file a third-party insurance claim as any damage to your bike will be covered by it. In the absence of a comprehensive cover, do remember to note the vehicle's registration number at fault. This will help you in tracking and filing a case against the vehicle owner.
At ICICI Lombard, we offer comprehensive bike insurance - Two Wheeler Package Policy, along with third-party insurance - Two Wheeler Liability Policy as well. You can take a look at the respective product coverage and purchase the policy that best suits your needs.