Understanding this motor insurance mandatory cover
Road accidents have become a regular affair in today's times. However, we seem to know very little about the claim process in case of such accidents. In case of damage to the car, we often end up paying from our own pockets or forfeiting our accrued No-Claim Bonus (NCB) by depending on the insurer.
There are 3 simple steps involved in a third party motor insurance claim, namely:
- Filing an FIR and obtaining a charge sheet from the police
- Approaching a Motor Accident Claims Tribunal through a motor claims lawyer
- Examining of the claim by the court and fixing a liability
This process seems simple, but there many facets that complicate it, such as the particular scenario in the case, coverage of both parties, etc. Here are the different permutations and combinations of situations where an individual A's car has been damaged by another B's car in an accident and the legal solution(s) in each case.
Possibility 1: When A has only basic third party insurance
In this case, A's own car has been damaged, and this is not covered under a third party contract. Here A is the third party for B, and can only claim compensation under B's third party insurance. Also, A must be able to establish negligence/wrong doing by B before the court.
Even if the court decides in A's favour, A might not get the full amount filed for. B and his insurer will only pay the amount awarded by the court. Unfortunately, A cannot claim the balance damage from his own insurer because compensation for the same damage cannot be claimed more than once.