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Settle Accident Claims through 3rd Party Car Insurance. Fact Vs Reality

Settle Accident Claims through 3rd Party Car Insurance. Fact Vs Reality

3rd Party Car Insurance can be used to settle down Road Accidents. Know Claim Settlement Process in 3rd Party Insurance Cover with the Facts compared against Reality



3rd Party Car Insurance Premium

Car Insurance Premium is primarily made up of 2 components

» Own Damage Premium

» 3rd Party Premium.

Know what is the role of 3rd Party Premium

Third Party Car Insurance, is bought with objective to cover the loss incurred

» Any Other Person Car with whom you met an accident by your Car

» Any Property Damage which may be caused while driving by Owner Car

» Physical or fatal injury to any 3rd Party by the Car

Its Mandatory by IRDA Norms and Traffic Police to buy 3rd Party Insurance before driving the car on Road.

3rd Party Insurance Premium Slabs 

Car Classification based on Engine Capacity Insurance Premium Paid
Cars with Engine < 1000 cc Rs 2055
Cars with Engine > 1000cc but < 1500 cc Rs 2237
Cars with Engine >= 1500 cc Rs 6164


The Amount of Claim :-

» Death or injury to 3rd Party: As Decided by Court. Suppose you drive Alto and hit an Aston Martin with estimated claim amount of 1 Crore, Court may ask Insurance company to cover this 1 crore. The cover is of Unlimited amount

» Damage to Property by the Car: This however is subject to maximum cap of Rs 7.5 Lakh

However - though as the name suggests, 3rd Party Insurance Premium seems like important cover to protect car owner in paying off damages to other person, still - the complexity involved in 3rd Party Insurance claim process is not known to all


Claim Settlement Process in 3rd Party Premium

Its important to note that the Claim amount is to be settled through Court of Law (Specially assigned Motor Accident Claim Tribunal - a case has to be filed in). Here is a Step by Step Process

» The Other Party has to compulsory Lodge an FIR against you of the details of accident. Also has to obtain Charge Sheet copy from Police

» An estimated repair amount would be given by Other Party to you

» A Details of Event - Registration Number of both Cars along with accident area, estimated claim amount, Witness details has to be shared by you with your Insurance Company

» A Set of Documents involving your Driving License Copy, FIR Copy, Claim Form, Insurance Policy, Car RC Copy, Claim Amount as shared by Other Party has to be send to Insurance Company

» Lodge a Case with Specially designed Courts which deals in Road Accidents aka MACT Court (Motor Accident Claim Tribunal Court)

» The Case will be Heard in Court and basis the Lawyers - Insurance company lawyer will try to put case on behalf of Insurance Company Stand and the Lawyer of Other Party based on Claim amount - proceedings and arguments will run basis extent of damage, repair amount, insurance company liability, Witness Statement - can take time in final order from court


Is it Easy to get Claim Amount in 3rd Party Car Insurance

Answer is No !!

Remember - On Face of it - though it seems at ease for the Driver at fault asking the Other Party to claim amount from his Insurance Company. But - Reality is much different as Insurance company just do not pay off the amount on just a claim (as otherwise happens in Comprehensive Policy)

Mandatory FIR, Charge sheet copy, Case to be Lodged in Court and Proceedings with Final Judgement from Court - all it can take time of Months and is tedious. If a Challenge or Contest to claim is done by Insurance company in Court - then it may take years too for the final Judgement from Court

Been the Claim amount are adjudicate by the MACT Courts and not Insurance Company - the legal proceedings can take up enough time and this is what makes 3rd Party Claim settlement Process a Farce than a reality in India


Important in Case of Road Accident

Do not Run Away from the Scene - as Other Party Can Lodge Police Case with IPC Section 134, 187, 279 -

» if the owner of the car runs away as Hit & Run

» Rash Driving and Drunken Driving or

» with some other allegation including Violence / Threat - which leads to arrest

Have your Point in favor by remaining there taking Help of Friends / Relatives or be the first one to call Police in case of Violence by the Other Party and then only Move Away.


Reality Facts on Car Accidents Claim Settlements

More than 95% of Insurance Policy Sold are Comprehensive Policy in India. The reality is - instead of all above cumbersome process, the Insured visits workshop and lodge claim through his Insurance company

Depending on Policy type - Comprehensive or Zero Depreciation Policy - the claim is approved and deductions (if any) are paid by Insured or a settlement is done wherein the other party pays off the deductions to the Insured for settle down the matter.

Barely are claims filed under 3rd Party Insurance due to its Tedious nature of Process

Our Final Comment to Law Makers is :-

» Either make 3rd Party Claim Settlement as easy as Comprehensive Policy Claim Settlement or

» Just remove it as Mandatory or make Optional for Buyer to choose at discretion 

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Important: If you seek advise or recommendation, pls raise query in Car Forum instead of posting in comments


Comments 1

Guest - Nitin Gaikwad on Wednesday, 10 May 2017 18:50

My Self Nitin Gaikwad Im Fleet Business I have 700 vehicle but Problem is My Vehicle Accident Reissue Is very High. 3rd Party Claim getting very But No any claim settel what i do ?

Hi My Self Nitin Gaikwad Im Fleet Business I have 700 vehicle but Problem is My Vehicle Accident Reissue Is very High. 3rd Party Claim getting very But No any claim settel what i do ?
Monday, 26 September 2022

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