All You Need To Know About Third-Party Liability Motor Insurance

What is third-party insurance?

According to the Motor Vehicle Act, all vehicle owners are required to have third-party motor insurance, also known as “act-only” insurance. This sort of insurance provides protection from damage to a third party’s vehicle, loss of personal goods, and bodily harm. The insurer is not covered by the insurance in any way. *

What is the procedure for third-party insurance?

If a policyholder has an accident, the insurer will provide money to cover the expense of fixing the property of the third party. A vehicle insurance third party lessens the policyholder’s financial burden as a result. Before submitting a claim in the event of an accident, the insured must notify the insurance provider right away. The insurance assigns a surveyor to evaluate the damages and confirm the estimated cost of repairs. The insurance settles the claim after the verification is complete. *

Third-party insurance: Its importance

  • The statute makes third-party insurance compulsory. Therefore, obtaining third-party motor insurance coverage enables the policyholder to adhere to the law
  • Despite being a basic option for coverage, it provides policyholders with the security of knowing that they have adequate financial protection against the harm they might cause to others in an accident
  • The policyholder’s financial assets are protected from unintentional hazards by third-party car insurance

The following are some of the terms frequently used to refer to third-party insurance:

  • First party: The policyholder or individual who bought the insurance
  • Second party: Insurer or insurance provider: the second party
  • Third-party: The individual who makes a claim against the first party for damages they are alleged to have caused

The policyholder is responsible for covering any losses or injuries sustained in the event of an accident with a third party. When an accident occurs, the policyholder must notify the third-party motor insurance provider as soon as possible and make them aware of the circumstances. *

Additionally, it is crucial to compile information on the accident and give the insurance the following specifics:

  • An accident’s description, along with the time and date
  • Information about insurance policies and those present at the scene of the accident
  • Describe any injuries the driver, passengers, or any damaged property or vehicles have suffered
  • Witness information
  • At the time of the accident, the weather and visibility
  • Photographs of the accident scene’s evidence collection

Give the insurance company’s information if the police ask and, if relevant, make a note of the First Information Report (FIR) number. Additionally, if the policyholder was not at fault for the accident, the claimant may file a claim for the cost of renting a car, repair expenses, and injury compensation in accordance with the terms outlined in the insurance policy document. *

The method for filing a third-party insurance claim *

The policyholder must follow the claim guidelines in order to receive compensation from the insurance provider. The following steps are included in the third-party motor insurance claim process:

  • The insurance policyholder must first and foremost notify the insurance provider of the accident within the time frame specified in the policy document.
  • The policyholder must report the accident to the police as soon as possible and obtain a copy of the report.
  • Fill out the form and provide the required documentation to file a claim with the lender.
  • The insurance will send a surveyor to evaluate the damage and confirm the estimated cost after receiving the claim paperwork. After evaluation, the surveyor submits a report.
  • The insurer resolves the claim in light of the report.

Exclusions *

  • Drunk driving was a factor in the disaster.
  • The driver is underage or was convicted of operating a vehicle without a legal licence.
  • The incident was intentionally caused.
  • Any unlawful or commercial uses for the vehicle are prohibited.
  • The automobile is stolen

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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