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How to Claim Under Third Party Car Insurance

This guide outlines the process of claiming third-party car insurance, covering steps for medical expenses, property damage, and necessary documentation. It also highlights exclusions and FAQs related to third-party claims.

  • 25 Jul 2016
  • 6 min read
  • 22334 views

Last updated: 06 Feb 2025

A car owner must carry third-party motor insurance under the Motor Vehicles Act 1988. This government-mandated requirement ensures that in the event of an accident, he/she can compensate the aggrieved party for bodily injuries/death or material damages and take care of any legal liabilities arising from the accident.

What is third party car insurance?

Third-party vehicle insurance is a two-way street. While you might pay a third party in case of an accident due to your fault, this car insurance type can also be availed in case you are at the other end of the line.

Also known as ‘Act Only’ plan, this car insurance variant is specifically designed for damages sustained by a third-party. However, several insurance providers offer personal accident cover to the insured. This ensures that in the event of an accident, the car owner is not only capable of compensating the third-party but can also take care of himself and his loved ones, in case of personal injuries or even death.

What's covered under third-party motor insurance?

Here are a few of the major claims that you can make from a third-party car insurance holder in case of an accident:

  • Medical expenses claim in case of bodily injuries incurred due to the accident. You can also claim for treatment expenses for the injuries sustained.
  • A compensation claim for physical disfigurement.
  • Compensation for loss of earnings due to disability that prohibits from working.
  • A compensation claim can also be filed by the dependents of the third-party if he/she passes away due to the accident. This claim is based on the ground of the income lost due to death.
  • In the case of a claim filed for damages to the third party, IRDA has capped the compensation ceiling at ₹7.5 lakhs for insurance companies. However, in case the claim exceeds the capped amount, then the deficit has to be paid by the car owner.
  • There’s no regulated cap on compensation claims filed for injuries and death.

What is the claim process under third party insurance?

Now that you’ve familiarized yourself with the nitty-gritty of third-party car insurance, here is the complete process on how to buy third-party car insurance online and claim 3rd party car insurance if you are the aggrieved one:

Third-party motor insurance compensation claim in case of disability, injuries or death

  • File an FIR with the police immediately after the accident and take a copy of the same.
  • Obtain the third-party motor insurance details of the car owner.
  • Take a copy of the charge sheet filed by the police against the car owner.
  • Hire a motor claims lawyer and file a compensation claim case in the Motor Accident Claims Tribunal. Remember, such cases do not fall under the jurisdiction of civil courts. The claim has to be filed in the tribunal court of the area where the accident has occurred or in the area where you (the claimant) resides.
  • In many cases, the car owner would suggest an out-of-court settlement, wherein a mutually agreeable amount is settled upon. Although this process is legally permissible, however, it’s best to get the authorities involved in case of an accident.

Third-party car insurance compensation claim in case of property damage

  • Property damage is inclusive of damage incurred by your vehicle and your personal property, including your house.
  • In the event of such damage, you need to file an FIR and get a copy of the same along with a copy of the charge sheet filed by the police against the offender.
  • The claim needs to be filed in the local tribunal court, where the compensation will be decided or rejected after taking into account the submitted documents as well as the story from both sides.
  • The maximum limit of compensation in case property damage is capped at ₹7.5 lakhs.

Documents Required to Raise a Third-Party Insurance Claim

To claim third-party insurance, these are the documents you need-

  1. FIR: The copy of the first information report
  2. Insurance policy documents for the vehicle
  3. Driving licence of the persons involved in the accident
  4. Vehicle RC or registration certificate
  5. Details of your third-party insurance policy

What You Can Not Claim Under a Third-Party Insurance?

Let us look at the claims that are not covered under third-party liability coverage-

  1. Any damage caused to your own vehicle
  2. Any injury to the driver or owner of the car
  3. Loss or theft of personal belongings during the accident
  4. Accidents occurred in excluded areas or while driving under the influence of alcohol
  5. Any intentional damage (in case the driver harms someone deliberately).

FAQs

  1. How long does third-party claim settlement take?

    The process varies from case to case and can take a few weeks to a few months.

  2. Can I file a third-party claim if the other driver does not have insurance?

    Yes, if you have third-party insurance, it covers the damage and injury to the other driver.

  3. Is third-party insurance sufficient for a vehicle?

    Third-party insurance protects only other people, their vehicles, and their property during an accident. You should buy comprehensive car insurance online to cover your vehicle.

  4. What if the third party refuses compensation?

    If the third party refuses compensation, the insurance company may take legal action. The insurer or the policyholder can approach the Motor Accident Claims Tribunal (MACT) or a court to resolve the dispute.

Conclusion

Although these steps might seem easy, getting a satisfactory 3rd-party car insurance claim settlement can be a tough road to walk on. As a car owner, it’s best to secure comprehensive car insurance to avoid huge financial liabilities draining your savings. It is the right way to provide your vehicle a complete safety net.

 


 

Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the Insurance industry and products. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.

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