How Does Third-Party Insurance Work in Accident?

A 3rd party insurance cover offers protection against financial liabilities when your vehicle meets with an accident. The 3rd party bike insurance cover is pocket-friendly when compared to a comprehensive bike insurance plan. It acts as a safety net for you as well as the victim during mishaps. It addition, it is legally mandatory for all vehicles. So, it is a must to have a clear idea about the working of this policy.

Role of 3rd Party Insurance Cover during Accidents

Several insurance companies offer a third-party insurance cover to provide financial compensation to the victim of the accident on your behalf. However, it is a must that you inform your insurer about the accident as soon as it occurs. This will help you to raise a claim at the earliest. 

As soon as you raise a claim, the insurer will conduct a thorough inspection regarding the injuries of the victim and damages to their property due to the accident. Once they approve of the extent of damage, the compensation will be paid to the victim. 

The compensation amount can vary from lakhs to crores depending on the extent of damage. A third-party insurance cover saves you from this sudden financial burden and from going bankrupt. These covers are extremely pocket-friendly and ensure your peace of mind. 

Steps to Claim 3rd Party Insurance Cover

The steps to claim a third-party insurance cover when you are responsible for the damages are as follows:

Step 1: Click clear pictures to identify all the damages caused.

Step 2: Inform your insurer regarding the accident and the damages.

Step 3: Inform the police and file an FIR.

Step 4: File a case at Motor Accident Claims Tribunal Court.

Step 5: Share the case details in court.

Step 6: Submit the court order to your insurer to make a claim.

However, it is mandatory for you to know the inclusions under a third-party insurance company so that your claim does not get rejected.

Inclusions of 3rd Party Insurance Cover

A third-party insurance policy offers the following coverage:

  • Serious injuries to the victim – 

In case a victim is severely injured, have become disabled or lost his/her life, the compensation amount is covered under this policy.

  • Third-party property damage – 

If the accident results in severe damage to a victim’s two-wheeler, this policy will cover up to Rs. 1 lakh as compensation.

Additionally, you must also be aware of the exclusions of the third-party insurance cover.

Exclusions of 3rd Party Insurance Cover

The exclusions of a 3rd party bike insurance cover are as follows:

  • For accidental damages to your own two-wheeler, you cannot claim this policy.
  • Damage is caused due to nuclear fuel, nuclear waste or nuclear weapons.
  • Accidental damages occurring outside the geographical region mentioned in the policy.
  • Claims raised out of Contractual Liability.
  • Accidental damages due to intoxication, over-speeding, illegal activities or riding someone else’s bike.
  • Accidental damage occurring due to foreign invasion, war, mutiny rebellion and so on. 

A 3rd party bike insurance cover is legally mandatory to provide financial safety during accidents. Now that you have a clear idea about how this policy works, you can proceed to purchase one to enjoy its benefits.

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