How to Claim Third Party Insurance?

Third-party insurance, sometimes also called third party liability insurance, helps to cover you against liabilities in case of any accidental loss or damage that is caused to any third-party vehicle, person or property.

For example, if your car accidentally hits another car and causes a dent, your third-party car insurance will cover for the losses incurred to that third-party due to this.

According to the Motor Vehicles Act, every vehicle in India at least needs a Third-Party Insurance to be able to drive on Indian roads legally. Unfortunately, it doesn’t cover your own vehicle damages.

But, no matter how carefully we drive, somethings are out of our control. So, it’s always a good idea to know what is covered, and what exactly is the third-party insurance claim procedure when something happens. This way, in case there’s some mishap, you’ll know what to do. 

In general, you can claim third-party insurance for damages to a third-party only. However, in situations where you’ve faced an injury too would be covered through your personal accident cover.

• In a third party insurance policy, the first party is you (the insured person and your vehicle), the second party is the insurance company, and the third party is any third person who can file a claim if your vehicle causes them any injury, death, or property damage.
• Here are some of the most common third-party insurance claims you can make in the case of an accident:
• In the case of injury and death, there is no regulated cap on compensation claims filed. This includes:
• Medical expenses, hospitalization expenses, and treatment expenses in case of injuries caused to a third-party person due to the accident.
• Compensation for loss of earnings due to a disability caused by the accident that prohibits the third-party person from working.
  
• Compensation claims in the case of any physical disfigurement
  
• Compensation claims can also be filed by the dependents of the third-party if they pass away due to the accident. 
  
• In the case of damages to the third-party property (like the third party’s vehicle or personal property) the IRDAI has capped claim filed at ₹7.5 lakh. However, in case the compensation amount exceeds this, the remaining amount must be paid by you, the first party. 

While you’re on the road, there may be different situations you come across because of which you need to make a third-party claim. Here are a few examples of the same and how you can go about making a third-party claim. 

When you have damaged someone else's vehicle or property

If there is an accident, and your vehicle has damaged someone else’s property, here is how you can go about settling the matter through the third-party claim process:

• You or the third-party will first need to lodge a FIR at the local police station and obtain a charge sheet.
• You will then have to share a copy of your motor insurance policy so that it can be used to make the claim. With Digit, you can share your digital copy that would have been sent to your email when you bought your third-party insurance.
• Remember to notify your insurance company, a.k.a us! Without this, the required compensation can’t be made.
• All third-party claims are settled in a Motor Accident Claims Tribunal (MACT), and the third-party must file a case at the local tribunal, who will then finalize the claim amount.
• If there’s a compensation to be made, we take care of it on your behalf.

Tip: In the case of minor damages and losses, you can try for an out-of-court settlement, where a mutually agreeable amount is settled upon without going through the often time-consuming process of filing a FIR and dealing with the Motor Vehicle Tribunal.

When someone else has damaged your vehicle

If there has been an accident and your property has been damaged, or you have suffered an injury due to someone else’s vehicle, here is what you can do to claim third-party insurance from them.

• You must file an FIR with the police and obtain a charge sheet at the time of damage.
• It’s important that you (the third-party) have viable evidence to prove the fault of the opposition party, like any photographic evidence, medical files showing your treatment fees, or documentation of injuries.
• You can also note down the names of the witnesses present and their numbers who are ready to support your claims.
• Obtain the third-party motor insurance details of the vehicle owner so that you can use it to raise a claim
• Hire a motor claims lawyer and file a compensation claim case in the Motor Accident Claims Tribunal (MACT)
• The tribunal court will decide (or reject) the compensation amount after considering the submitted documents and the story from both sides.
• The maximum amount of compensation in case of property damage is capped at ₹7.5 lakhs, though in the case of injury or death there is no limit.

When your car or property is damaged because of the fault of another driver, you can choose to go for Subrogation.

Here, the insurance company will pay you the amount you claimed and then you give them the right to sue the person who caused the accident to recover the money paid to you from them.

But remember, you can request this only if you have comprehensive motor insurance and not a third party policy only.

The following documents must be submitted during your third-party insurance claim procedure:

• Duly filed and signed claim form
• A copy of the FIR
  
• A copy of your valid Driving License
  
• A copy of the first two pages of your policy document
  
• A copy of your vehicle’s registration certificate

The third party can also hand in additional documents, such as photographic evidence, and other proof of fault of the opposition party. In the case of, this might include the inspection officer’s report, original bills and surveyor’s report.

While in the case of personal injury, medical bills, or documentation of injuries may be required.

• Here at Digit, we love claims! In case of an accident, you can just reach us at 1800-258-5956 and we’ll do everything that we can in our capacity.
• In case you meet with an accident (and hopefully that never happens!), when you make a third-party claim, we will take care of any legal responsibilities arising out of that. This includes advocates, investigations and any verification.
• If there is any compensation to be made to the third-party, we take care of it on your behalf.
• As long as there are no violation of terms, we will try for a non-monetary settlement on your behalf. And, if the situation arises, Digit Insurance will represent you in court.
• Also, if you’ve been a good citizen and have admitted your fault for any kind of negligence, your Digit Third Party cover will still hold good.
• Most importantly, you should know that you will not lose your No Claim Bonus when you make third-party claims. You will only lose it in case of own damage claims.

How long a third-party claim takes will depend on whether you decide to file the compensation claim case in the Motor Accident Claims Tribunal, or you decide to settle out-of-court.

Usually, claims filed for large property damages, injury and death can take one to two years to be settled. Just make sure that you have all the documents in place, including a proper narration of the incident recorded in the FIR, and original records of expenses. These can help you get a speedier verdict in your favor.

For minor damages and losses, people are advised to settle it out-of-court as it would be a lot more quicker that way.

• When the damage is caused due to drunk driving
• If you were driving without a valid driving license
• In case you were driving with a learner’s license and without a valid driving license holder in the passenger’s seat
• If the damage is not a direct result of an accident
• When the damage is due to contributory negligence
• No proof of the accident was given
• False proofs were provided
• The claim was filed too late

When you’re filing for a third-party claim, here are some mistakes you should avoid making:

• Do not run away from the site of the accident, even if you are at fault.
• Do not forget to inform the police about the accident and to lodge an FIR
• Avoid trying to settle the matter personally with the third-party
• Never drive your vehicle under the influence of alcohol or drugs
• Do not use a private registered vehicle for commercial use
• Do not skip any of the required formalities, like filing a FIR, or getting medical documents
• Do not carry more than the vehicle load capacity, for both passengers and goods
• And most importantly, do not get stressed! Call us at 1800-258-5956 and we’ll do the needful.