Motor Insurance Policy: Did you know that back in 1988, the Indian government made it mandatory for car and bike owners to buy motor insurance policies before they were allowed to drive their cars or bikes on Indian streets? Since then, people have been buying motor insurance policies to safeguard their interests while their vehicles are driven on the streets. There are two types of motor insurance policies. For instance, in the case of cars, the two types are comprehensive car insurance policy and third-party car insurance policy. In this blog, we will tell you some basic things about the third-party car and bike insurance policies you should know.
To understand what a third-party motor insurance policy is, you need to know about the parties involved in an insurance policy.
- The first part is the insurance policyholder.
- The second part is the insurance company providing the insurance service.
- The third part is the beneficiary of the insurance policy.
In other words, the third party is the one who is reimbursed by the second party for the damage caused to them by the policyholder (first-party) in an accident.
The same applies to a third-party bike insurance plan as well.
Let us look at what is covered under the third-party car or bike insurance plans.
The conditions covered under this policy scheme are:
- Reimbursement for the hospitalization costs of the third party if bodily injury is caused to them in an accident involving your insured car or bike.
- Monetary compensation for the third party’s family in case of the third party’s death.
- Compensation for the third party in case of permanent bodily damage to it due to the accident.
- Reimbursement for the third party for the property damage they faced in the accident.
Let us look at how the third-party car insurance claim procedure works.
This procedure is similar for third-party bike insurance as well. It is as follows:
- The affected third party has to file an application against the first party that caused the accident.
- They have to lodge an FIR at a police station near the spot of the accident and register their details, that of the first party and witnesses if any.
- They have to file a case at the motor insurance claims tribunal. The court will go through the details of the case and the documents submitted to them. The court will decide the amount of money the first party has to pay to the affected third party to cover the damages done.
- The second party or the insurance company will pay that amount to the third party on behalf of the first party.
Note that the third-party car insurance policy does not reimburse the cost to cover the damages that the first party faced in the accident. We hope that you are now armed with knowledge about a third-party motor insurance policy and how it helps in protecting you against any natural or manmade calamities. Have a nice day!