When you purchase a car, it is also mandatory to take third-party insurance for it. You cannot drive your vehicle on Indian roads if you haven’t taken an insurance policy for your car, according to the Motor Vehicles Act of India. Also, this plan comes with several benefits; you must know how to utilize them in real sense.
- Third-party coverage
Motor insurance usually provides two covers, Own-damage and Third Party cover. However, you must know what the coverage is and benefits of this policy, here’s why:
If there is a case of an accident that leads to injury, permanent or partial disability or death, the liability limit is not pre-decided. The total amount is compensated by the insurer as decided by the court in its final verdict. Therefore, at the time of resolving the case, the compensable amount is fixed by the court.
Bodily injuries and disabilities are covered in a third-party, but if any damage is caused to the third-party’s vehicle, it is also taken care of. They are permitted to register a claim against the owner of the car for compensation, by the law.
- Repercussions of driving without insurance
A car insurance plan is essential as you are financially covered. It compensates for the expenses incurred in damage repair or if your vehicle is stolen. This cover is offered to you by the automobile company while purchasing the car. Also, having insurance is as significant as a driving license. If you do not have one, you might have to pay a huge penalty.
Penalties are different in every country. Listed below are a few similar punishments:
- You might have to give up your driving license if you drive your car without motor insurance.
- Your vehicle registration will be suspended.
- Driving without valid insurance leads to paying a fine or serve 3 months of imprisonment or both, depending on what situation it is.
- Third party insurance claim process
- Claim made for injury/ disability/ death
A victim can file a claim in Motor Accident Claims Tribunal intimating the location of the incident, as per the rule of Motor Vehicles Act, 1988. All the victim needs to do is, collect the insurance information of the vehicle involved.
- Claim made in case of property damage
The victim can file a case if any damage is caused to third-party’s property in the Motor Accident Claims Tribunal, by simply following the exact procedure mentioned above. An out-of-court settlement is reached for most of the cases and compensation is provided for the asked expenses. However, if the person thinks the given compensation is less, he can file a claim against the vehicle owner.
Nobody predicts the need to file a claim. But, if at all you require the need to, you will have to remember the things mentioned above. By following these points, your claim process will become fast as well as hassle-free. It is always good to be prepared for any uncertainty. Hence, insure your vehicle with third party car insurance.