Updated on - 31 Dec 2025
Handling a car accident can be stressful, especially if another person or their property is involved. In such circumstances, third-party insurance can provide you with financial protection. According to the law, car owners are required to carry third-party vehicle insurance. It covers legal liability for harm or property damage caused by the insured vehicle. For the settlement process to go well, it is essential to know how to file a claim properly.
This guide breaks down the crucial process, coverage, documentation and mistakes to avoid during third-party claims. With the right information, you can manage claims seamlessly and have peace of mind.
What is third-party car insurance?
Third-party car insurance is the basic type of car insurance that every vehicle owner in India must have. It’s required by law and helps you avoid trouble if your car accidentally injures someone or damages their property.
Let’s say you bump into another car or hit someone’s wall while driving. Third-party insurance will pay for the damage or injury caused to the other person. It’s like a safety net that protects you from paying big bills out of your own pocket.
However, this insurance doesn’t cover your own car. So if your car gets scratched or dented, or if it’s stolen, third-party insurance won’t help. For that, you’d need a comprehensive policy or own damage cover.
What’s covered under third-party motor insurance?
A third party (victim) can claim compensation for:
- Medical expenses for the treatment of injuries caused by the accident
- Compensation for physical disfigurement or disability
- Loss of earnings due to temporary or permanent disability
- Compensation to dependants in case of death due to the accident
- Third-party property damage, such as damage to their vehicle, building, wall, gate, shop, etc.
IRDAI cap:
- Property damage compensation is capped at ₹7.5 lakhs.
- If the court awards more, the extra amount has to be paid by the offending car owner.
- There is no cap on compensation for injury or death.
What is the claim process under third-party insurance?
Here is the complete process to file a third-party compensation claim:
Third-party motor insurance claim for disability, injuries or death:
- File an FIR at the nearest police station and obtain a copy.
- Collect the insurance and registration details of the offending vehicle.
- Once available, obtain the charge sheet filed by the police.
- Hire a motor claims lawyer and file a compensation claim at the Motor Accident Claims Tribunal (MACT).
- MACT has exclusive jurisdiction over motor accident cases.
- Claims can be filed in the area where the accident occurred or where the claimant resides.
In some cases, parties may explore an out-of-court settlement. While legally allowed, it is usually safer to go through proper legal channels.
Third-party car insurance compensation claim for property damage:
- Property damage refers to damage caused to the third party’s property.
- File an FIR and get a copy, along with the charge sheet once issued.
- File the compensation case in the local MACT.
- The tribunal will review the documents, hear from both sides and determine the compensation amount.
Documents required to raise a third-party insurance claim
You will need:
- Copy of the FIR
- Insurance policy documents
- Driving licence of the persons involved
- Vehicle RC
- Medical reports and hospital bills (injury cases)
- Repair bills/estimates (property damage cases)
- Photos or videos of the accident site
What can you not claim under third-party insurance?
- Damage to the offending vehicle
- Theft of personal belongings
- Accidents involving drunk or reckless driving
- Accidents in excluded geographical areas
- Intentional or malicious damage
Common mistakes to avoid while filing a third-party claim
A successful claim procedure requires you to avoid mistakes that could result in delays or even rejection. Make sure to avoid these:
1. Leaving the scene:
It is not wise to leave the scene of an accident. As a result, it may become very challenging to file a claim later on.
2. A First Information Report (FIR):
This is a crucial legal document that must be filed on time. As it functions as an official record of the accident, it is necessary for the settlement claims.
3. Admitting fault:
You can apologise. However, avoid offering an apology or admitting fault in a way that can be construed as taking responsibility. The entire claim procedure may become more complicated because of this action.
4. Not documenting:
Don’t forget to take immediate photos or a recording of the damage scenario. Collect witness details and preserve all relevant invoices and receipts. It can also help during court hearings.
5. Delaying communication:
If any incident occurs, notify your insurance company as soon as possible. Delays can lead to complications and even the denial of a claim.
6. Giving false information:
Ensure that every detail you state is accurate and correct. The basic information contains the incident’s date, time and location. Again, errors may result in the denial of a claim.
7. Accepting early statements:
Don’t sign any release documents or take a cheque from the insurance company too soon. The insurer may provide you with a cheque labelled “full and final settlement" throughout the claim procedure. Accepting this could be a mistake because the insurer may not be able to include further claims you want to make. Wait till you find the sum to be reasonable.
Why having the right car insurance plan matters
Choosing the right car insurance isn’t just about meeting a legal requirement; it’s about protecting yourself financially. A good policy acts like a safety net when unexpected incidents happen on the road. With the right coverage, you get peace of mind knowing that the financial and legal complexities of a third-party claim are taken care of.
It’s essential to understand exactly what your policy covers and how the claims process works, so you’re fully prepared in case of an emergency.
Conclusion
With diligence and adherence to a defined procedure, you can successfully file for a third-party claim. The key actions include documenting the incident, promptly notifying your insurance company and avoiding common mistakes. While you do so, remember that the Motor Accident Claims Tribunal (MACT) decides all the settlement responsibilities regarding harm and damage.
Understanding the legal structure related to third party car insurance can ensure your financial security and compliance. Adequate preparation and expertise are the ultimate way to achieve claim resolution. When you have experienced insurance professionals supporting you, managing tough situations becomes easier
Fill out the form on this page and receive personalised insurance advice that fits your requirements. With the right four wheeler insurance and a team to back you during tough times, you secure safety against unforeseen situations.
FAQs
1. What can happen if I miss the claim-filing deadline?
If a car insurance policy specifies a deadline for making a claim, missing it may result in the claim being denied. Sometimes, late claims may be accepted but they must have valid explanations for the delay, supported by relevant records and documentation.
2. Is it necessary to hire a lawyer for third-party insurance?
For effective legal representation, it is advised to hire a professional lawyer who has experience in car accident claims. Because third-party claims involve damage or death settlement through the Accident Claims Tribunal (MACT) court system, hiring an expert can help you handle the case better.
3. How does compensation get decided in third-party claims?
The Accident Claims Tribunal decides after hearing arguments from both parties to the accident and examining all supporting documents.
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.