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How Pay and Recover Policy Helps You In Case of Third Party Liability on Insurer

Written by Sharad Bajaj

Updated On Mar 18, 20212 min read

How Pay and Recover Policy Helps You In Case of Third Party Liability on Insurer

Third party insurance cover is a mandatory requirement for all bike riding on the roads of India. The aim behind the statutory mandate is to ensure any third party damage occurred due to the insured bikes gets covered by the insurance policy. Hence, if you face any self or property damage due to an accident involving a bike, you will get compensated for your loss. Among the third party insurance covers, the policy of pay and recover makes up for any breach in the policy. It ensures your utmost safety against bike accidents.

How Pay and Recover Policy Helps If You Get Hit By a Bike

It may happen that you do not get compensation after facing damage in a bike accident even if the bike is insured with a third party liability cover. It can happen due to any gap in the policy. The insurer may disqualify the coverage and deny any compensation, in case the driver is intoxicated or driving without a valid driving license.

In such a scenario, you may end up in a mess. To help you in situations like those, the pay and recover policy helps you in getting financial assistance. Under this cover of pay and recovery, an insurance provider is liable to pay for any third party loss and can recover the same compensation amount from the insured later.

Coverage Under The Pay And Recovery Policy

The pay and recovery policy provides coverage under the following circumstances:

Only third party damage gets covered under the pay and recover policy. Any damage to the insured does not get any benefit from this policy.
In case of any conditions that can disqualify the policy, such as drunk driving, driving without a valid license, the insurer cannot deny compensation to the third party. The insurer must pay for the third party damage.
After providing assistance to the involved third party, the insurer has the right to retrieve the amount from the insured.

Few Things To Consider Regarding Pay And Recover Policy

Here are a few guidelines instructed by the court of law to ensure effective implementation of the pay and recover policy:

The reason for the disqualification, such as the absence of a driving licence, invalid driving license, intoxication and so on has to be proved.
The driver involved in the accident must be proven guilty of negligence or failure to abide by the condition of the policy.
In case the person driving the bike at the time of the accident holds a learner’s licences, the insurer will be responsible for compensation under the policy.
The insurer has the right to put up a defence against a claim petition.
If the breach is proven correct, the insurer can reimburse the money from the insurer.

The third party insurance policy itself is a strong protection against the unpredictabilities of the road. The pay and recover policy adds an extra layer of protection. Even if the biker denies or fails to compensate for your damage and the insurer tries to do the same, this policy will prevent your loss.