Third Party Insurance

According to the Motor Vehicle Act, all vehicle owners are required to have third-party insurance, also known as “act-only” insurance. This sort of insurance provides protection from damage to a third party’s vehicle, loss of personal goods, and bodily harm. The insurer is not covered by the insurance in any way.

What is the procedure for Third-Party Insurance?

If a policyholder has an accident, the insurer will provide money to cover the expense of fixing the property of the third party. It lessens the policyholder’s financial burden as a result. Before submitting a claim in the event of an accident, the insured must notify the insurance provider right away.

The insurance assigns a surveyor to evaluate the damages and confirm the estimated cost of repairs as soon as the claim is lodged. The insurance settles the claim after the verification is complete.

Value of Third-Party Insurance

The statute makes third-party insurance a compulsory. Therefore, obtaining third-party coverage enables the policyholder to adhere to the law.
Despite being a basic option for coverage, it provides policyholders with the comfort of knowing that they have adequate financial security against the harm they might cause to others in an accident.
The policyholder’s financial assets are protected from unintentional hazards by third-party car insurance.

Making a list of the terms used can help you understand how a third-party insurance plan operates. The following are some of the terms frequently used to refer to third-party insurance:

First party: The policyholder or individual who bought the insurance.

Second party: insurer or insurance provider.

Third-party: The individual who makes a claim against the first party for damages they are alleged to have caused.

The policyholder is responsible for covering any losses or injuries sustained in the event of an accident with a third party. When an accident happen, the policyholder must inform the insurance provider as soon as possible and make them aware of the circumstances.

Additionally, it is crucial to compile information on the accident and give the insurance the following specifics:

An accident’s description, along with the time and date.
Information about insurance policies and those present at the scene of the accident.
Describe any injuries the driver, passengers, or any damaged property or vehicles have suffered.
Witness information.
at the time of the accident, the weather and visibility.
photographs of the accident scene’s evidence collection.

Give the insurance company’s information if the police ask and, if relevant, make a note of the First Information Report (FIR) number.

The characteristics of third-party insurance

All policyholders are provided with a fundamental degree of protection through third-party insurance.
Additionally, it is known as a liability-only or act-only policy.
It gives defence against any legal responsibility to a third party brought on by the policyholder’s involvement in the collision. It provides compensation for third-party property damage, death, and physical harm.
The fact that this form of coverage offers a reasonable premium is a key characteristic.
The insured vehicle is not protected by third-party insurance.

The method for filing a third-party insurance claim

The policyholder must follow the claim guidelines in order to receive compensation from the insurance provider. The following steps are included in the third-party insurance claim process:
The insurance policyholder must first and foremost notify the insurance provider of the accident within the time frame specified in the policy document.
The policyholder must report the accident to police as soon as possible and obtain a copy of the report.
Fill out the form and provide the required documentation to file a claim with the lender.
The insurance will send a surveyor to evaluate the damage and confirm the estimated cost
after receiving the claim paperwork. After evaluation, the surveyor submits a report.