Claiming third-party insurance might seem like a simple process, but even minor errors, such as delaying the FIR, not informing your insurer on time or submitting incomplete documents, can cause unnecessary delays or even claim rejections.For serious cases involving injury, death or property damage, claims must go through the Motor Accident Claims Tribunal (MACT).
Understanding the correct process is essential to avoid setbacks. This guide explains how to file a third-party insurance claim the right way and highlights common pitfalls to avoid.
What is third-party car insurance?
Third-party car insurance is a mandatory policy under the Motor Vehicles Act, 1988, that provides coverage against legal and financial liabilities arising from injuries or damages caused to a third person or their property by your vehicle. It is the most basic form of car insurance required by law in India. However, it does not cover damages to your own vehicle or personal injuries.
Why do you need third-party car insurance?
Opting for third-party car insurance helps protect you from unexpected legal and financial liabilities arising from damage or injury caused to a third person or their property by your vehicle.
Without this coverage, you would be responsible for these expenses out of pocket, which can lead to a significant financial burden. Moreover, it is legally mandatory in India under the Motor Vehicles Act and not having it can result in heavy fines and legal complications.
Steps to raise a third-party car insurance claim
A proper third-party insurance claim procedure can help you file your insurance claim successfully:
- File an FIR at the nearest police station. It’s mandatory for third-party claims.
- Notify your insurance company immediately to avoid claim rejection.
- Gather evidence: photos/videos of the scene, damages and contact details of any witnesses.
- File the claim through the Motor Accident Claims Tribunal (MACT), as third-party claims are settled in court.
- Submit required documents: FIR, claim form, driving license, vehicle RC and insurance policy copy.
- Attend all MACT hearings as required.
Scenarios when you need to claim third-party car insurance
A third-party comprehensive car insurance can be helpful in many cases. Here are a few of them:
If your car has caused an injury to a third person. They are legally entitled to seek compensation.
If a third person has died in an accident caused by your car. The deceased’s family can file a claim under your insurance through the Motor Accident Claims Tribunal (MACT).
- Damage to third-party property
Suppose your car had damaged someone’s property, the property owner can raise a claim to cover repair or replacement costs.
Common mistakes to avoid when filing a third-party car insurance claim
Several common mistakes can make the third-party car insurance claim process stressful or lead to rejection. Delaying the FIR, especially in cases involving injury, death or major property damage, can weaken your claim, as it’s a mandatory requirement.
Failing to inform your insurer promptly may also affect claim validity. Admitting fault at the accident scene or making unofficial settlements can complicate the process legally and financially.
Inadequate evidence, such as missing photos, videos or witness details, can hinder the claim assessment. Additionally, a lack of cooperation during the investigation and skipping the mandatory MACT process for serious claims may result in delays or outright denial.
Conclusion
While third-party car insurance offers essential protection against legal and financial liabilities caused by your vehicle, the claims process can be challenging if not handled correctly. Filing a claim without understanding the proper steps may lead to delays, rejections or added stress.
Understanding how to file a claim properly and having the right insurance in place is key to avoiding unnecessary costs and ensuring a smoother experience. Keep this guide handy to steer clear of common mistakes and make your third-party car insurance claim process as seamless as possible.
FAQs
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What should you not do when making an insurance claim?
When filing an insurance claim, avoid delaying notification to your insurer, admitting fault or making unofficial settlements at the scene and carrying out permanent repairs before the insurer’s assessment; these actions can lead to claim rejection.
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What happens to the No-claim bonus once I file a claim?
Filing a claim usually resets or reduces your No-Claim Bonus (NCB) according to the number and severity of the claims. NCB is reduced to zero (if you make more than two claims during) for the following policy year.
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Can I file a third-party claim without the other party’s details?
No, you need the third party’s vehicle and personal details to initiate a claim.
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