How to Claim Third Party Car Insurance
Updated On Oct 22, 2023
How To File A Claim If You Have A Third Party Car Insurance
Owning a vehicle in India comes with certain legal responsibilities, one of which is having a third-party motor insurance policy. This insurance is mandatory under the Indian Motor Vehicles Act of 1988. It provides coverage for damages caused to a third party in case of an accident. While most vehicle owners possess this third-party car insurance, not many are aware of how to raise a third-party claim when the need arises. In this comprehensive guide, we will walk you through the process of claiming third-party car insurance in India, making it easier for you to navigate the sometimes complicated procedures involved.
Understanding Third-Party Car Insurance Policy
A third-party car insurance policy is a mandatory requirement for all vehicle owners in India. It is designed to cover damages caused to a third party in the event of an accident. This insurance policy fulfills the legal liabilities of the insured vehicle owner and does not cover damages to the insured vehicle itself. The premium rates for third-party car insurance are decided by the Insurance Regulatory and Development Authority of India (IRDAI). The features of the policy are similar across most insurance companies, with the premium rate varying based on the engine capacity of the vehicle. It is important to note that the IRDAI reviews and updates the rates for third-party vehicle insurance policies on an annual basis.
Third Party Car Insurance Rates for Petrol, Diesel and Hybrid Cars -
Engine CC of the Car
Premium (1 year policy)
<= 1,000 cc
>1,000 cc to <= 1,500 cc
Third Party Car Insurance Rates for Electric Cars -
Premium (1 year policy)
>30 KW to <=65 KW
What Comes under Third-Party Claims?
The policyholder of third-party car insurance can register claims against third-party property/vehicle damages, third-party bodily injuries/personal damages, as well as third-party death. The limit for claiming third-party property damages is up to INR 7.5 lakh, while there is no limit in the case of liability against third-party injuries and death. In case of other vehicle insurance policies, such as Stand-Alone Own-Damage Car Insurance Plans or Comprehensive Car Insurance Plans, the insurance provider supports the insured in the entire claiming process. However, in the case of third-party claims, you may or may not receive any aid from the insurer. So, most of the things under this claim process are required to be done by the policyholder on his/her own.
Third-Party Claim Process – Conditions to Raise a Third-Party Claim
Below are the conditions under which a third-party claim can be raised:
- Hospitalization expenses
- Third-Party Demise
- Third-Party Property/Vehicle Damage
Third-party claims can be raised for hospitalization of the third-party person for bodily/personal injury, including permanent disability or partial disability caused by an accident. If the third-party person is unable to work or make a living due to accidental disability, he/she can raise claims for the same. If an accident causes the death of the third-party person, the dependents can raise a death benefit claim as per the income of the deceased. They can also claim the cost incurred in the hospitalization and other expenses before the person succumbs to his/her injuries. If an accident causes any property/vehicle damage, the claimant requires the report of the inspection officer and the report of the surveyor before raising the claim to estimate the loss. You may also note here that the turnover time for paying the compensation in case of death or bodily injury of the third-party person is three years.
How to Claim Third Party Car Insurance?
The process of claiming third-party car insurance can be lengthy and involves several steps. It is crucial to follow the correct procedure to ensure a successful third-party insurance claim.
Here is a step-by-step guide on how to claim third-party car insurance in India:
Step 1 - Register a Complaint or File an FIR
In the event of an accident, the first step is to register a complaint or file a First Information Report (FIR) at the nearest police station. It is important to collect a copy of the FIR's charge sheet for future reference.
Step 2 - Notify Your Insurer
Inform your insurance company about the accident and provide them with all the necessary details as soon as possible. This will help initiate the claim process. This can be done by a third-party car insurance online claim process as well.
Step 3 - Proceed to the Motor Accident Claims Tribunal (MACT)
Cases involving accidents and road mishaps are handled by the Motor Accident Claims Tribunal (MACT). After lodging the FIR, the case is transferred to the MACT, which is a specialized court responsible for handling road accident cases and deciding on compensation.
Step 4 - Share Insurance Policy Document
Provide a copy of your car insurance policy document to the MACT to support your third-party insurance claim.
Step 5 - File a Case at the Tribunal
The third party involved in the accident needs to file a case at the MACT to receive the final claim amount. The MACT will review the case and decide on the compensation based on the nature of the accident and the extent of damages.
Step 6 - Document the Third-Party Damages
If the accident caused damages to the third party's property or vehicle, it is essential to gather evidence, such as photographs and reports from inspection officers and surveyors. These documents will help estimate the extent of the damages and support your claim. This can be submitted easily third-party car insurance online submission as well.
Step 7 - Hospitalization Expenses and Third-Party Demise
If the accident resulted in hospitalization or death of the third party, you can claim compensation for hospitalization expenses and death benefits. The dependents of the deceased can file for compensation based on the income of the deceased.
Step 8 - Claim Settlement
Once the MACT reviews the case and assesses the damages, they will determine the compensation amount. It is important to note that the turnover time for paying the compensation in case of death or bodily injury is three years.
Documents Required for Third-Party Car Insurance Claims
To ensure a smooth claim process, make sure you have the following documents ready. You can submit these documents through third-party car insurance online process as well
- Third party insurance claim form (duly completed and signed)
- FIR copy lodged at the police station.
- Driving license copy
- Insurance policy document
- The vehicle's registration certificate copy
It is important to note that there are certain situations where third-party insurance claims are not entertained. These include:
- Damages to the insured car (not covered under third-party insurance)
- Accidents caused by drunk driving.
- Accidents caused by driving without a valid license or with an invalid license.
- It is important to familiarize yourself with these exceptions to ensure a successful claim.
Raising a third-party car insurance claim in India may seem like a daunting task, but with the right knowledge and understanding of the process, it can be a smooth and hassle-free experience. By following the steps outlined in this guide and providing all the necessary documents, you can ensure a successful claim and receive the compensation you deserve. Remember to notify your insurance company as soon as possible after an accident and document all the damages and expenses related to the third party. With proper preparation and adherence to the procedures, you can navigate the complexities of claiming third-party car insurance in India with confidence. Remember to always consult your insurance provider and seek professional advice when filing a claim.
1. What documents are required for a third-party car insurance claim?
To file a third-party car insurance claim, there are several documents that you will typically need to submit. These may include:
- Duly filled claim form: This is a form provided by your insurance company that asks for details about the accident and the damages incurred.
- RC copy of the vehicle: The Registration Certificate (RC) copy of the vehicle involved in the accident is required to establish ownership.
- Original estimate of loss: An estimate of the damages caused to the third party's vehicle or property.
- Original repair invoice and payment receipt: If repairs have been done, you will need to provide the invoice and proof of payment.
- FIR (First Information Report), if required: In certain situations, such as accidents involving injuries or fatalities, an FIR may need to be filed with the police.
- Keys (in case of theft claims): If your vehicle has been stolen, you will need to submit the keys along with a non-traceable certificate.
- It's important to note that these are general requirements, and you should refer to your policy document for the complete list of documents needed for your specific claim.
2. What is No Claim Bonus (NCB), and how does it affect a third-party car insurance claim?
No Claim Bonus (NCB) is a benefit that is accrued to an insured driver for not making any claims during the previous policy period. In India, NCB ranges from 20% on the Own Damage premium and progressively increases to a maximum of 50%. However, if a claim is lodged, the NCB is lost in the subsequent policy period.
It's important to understand that NCB is given to the insured individual and not to the insured vehicle. This means that if you sell your vehicle and buy a new one, you can transfer your insurance policy to the new owner, but the NCB will not be transferred. It will remain with you, and you can avail of the NCB facility if you change your insurer on renewal by providing proof of the NCB earned.
3. How long is a third-party car insurance policy valid?
A third-party car insurance policy is usually valid for one year and needs to be renewed before the due date. It's crucial to renew the policy without fail to ensure continuous coverage. If the policy lapses even by one day, the vehicle will have to be inspected. Additionally, if a comprehensive policy is allowed to lapse for more than 90 days, the accrued benefit of NCB will also be lost. Renewing your policy on time is not only important for maintaining coverage but also for preserving any accumulated NCB. It's recommended to set reminders or opt for automatic renewal to avoid any lapses in your third-party car insurance policy.
4. What is a deductible in a third-party car insurance claim?
A deductible, also known as an excess, is the amount that you need to pay out of pocket before your insurance company will cover the remaining claim amount. There is typically a standard or compulsory excess for most vehicles, ranging from Rs 50 for two-wheelers to Rs 500 for private cars and commercial vehicles. The amount of the deductible may increase depending on the cubic capacity or carrying capacity of the vehicle.
In some cases, the insurer may impose an additional excess based on factors such as the age of the vehicle or a high frequency of claims. It's essential to review your policy documents to understand the specific deductible amount applicable to your third-party car insurance claim.
5. Will my No Claim Bonus (NCB) transfer if I change my insurance company?
Yes, you can transfer your No Claim Bonus (NCB) to a new insurance company if you decide to change insurers on renewal. To avail of the NCB facility, you will need to produce proof of the NCB earned in the form of a renewal notice from your current insurer. This notice should clearly state the accumulated NCB and its validity.
Transferring your NCB to a new insurance company can help you continue enjoying the benefits of not making any claims. It's important to inform your new insurer about your NCB during the application process to ensure that it is properly applied to your new policy.
6. How to file a third-party car insurance claim?
Filing a third-party car insurance claim involves several steps. Here is a general guide on how to file a claim. It's important to note that the claims process may vary slightly between insurance companies, so it's crucial to follow the specific instructions provided by your insurer.
- Contact your insurance company:
- Collect evidence.
- Fill out the claim form.
- Follow up with your insurance company.
- Claim settlement.
7. How long does it take to settle a third-party car insurance claim?
The time it takes to settle a third-party car insurance claim can vary depending on various factors, such as the complexity of the case and the availability of supporting evidence. In general, insurance companies aim to settle claims as quickly as possible to provide timely compensation to the affected parties.
However, it's important to note that some claims may take longer to settle, especially if there are disputes regarding liability or the extent of damages. In such cases, it may be necessary to involve legal professionals or seek mediation to reach a resolution. Your insurance company will be able to provide you with an estimated timeline for the settlement of your specific claim.