It is required by law that vehicle owners in India take third-party motor insurance. It protects the vehicle owner against any financial liability as a result of death, physical injury or damage to the property of a third party. It is referred to as third-party cover since the beneficiary of the policy is someone other than the two parties involved in the contract—car owner and insurance company. A victim may file a third-party liability claim against the vehicle owner and the latter's insurer will, in turn, pay for such a claim on his behalf.
Claimant
An application for a third-party claim can be made against the vehicle owner by the victim or his/her agent, the owner of the property, which has suffered damage or the legal representative of the deceased.
Police complaint
A first information report (FIR) must be filed with the police, quoting the registration number of the vehicle involved in case of an accident, licence number of the driver, and the names/contact details of witnesses, if any.
Claims tribunal
A case has to be filed with the Motor Accident Claims Tribunal, with jurisdiction over the area where the accident occurred or where the claimant resides.
Documents
A copy of the FIR and the original records of expenses incurred by the claimant must be presented to substantiate the damages/loss.
Cover amount
In case of an accident that causes injury or death, the limit for third-party cover has not been defined. The entire compensation is borne by the insurance firm once the court decides on the amount.
Points to note
The victim has to establish negligence on the part of the vehicle owner to claim damages from him and his insurer.
Compensation for the damage cannot be claimed more than once. Hence, the victim cannot expect his/her insurer to make up for any shortfall in the compensation that has been decided by the court.
Claimant
An application for a third-party claim can be made against the vehicle owner by the victim or his/her agent, the owner of the property, which has suffered damage or the legal representative of the deceased.
Police complaint
A first information report (FIR) must be filed with the police, quoting the registration number of the vehicle involved in case of an accident, licence number of the driver, and the names/contact details of witnesses, if any.
Claims tribunal
A case has to be filed with the Motor Accident Claims Tribunal, with jurisdiction over the area where the accident occurred or where the claimant resides.
Documents
A copy of the FIR and the original records of expenses incurred by the claimant must be presented to substantiate the damages/loss.
Cover amount
In case of an accident that causes injury or death, the limit for third-party cover has not been defined. The entire compensation is borne by the insurance firm once the court decides on the amount.
Points to note
The victim has to establish negligence on the part of the vehicle owner to claim damages from him and his insurer.
Compensation for the damage cannot be claimed more than once. Hence, the victim cannot expect his/her insurer to make up for any shortfall in the compensation that has been decided by the court.
The content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.
Source:-The Economic Times
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