In India, there are many registered vehicles which are not covered properly. It has been observed that some auto owners haven’t ever had coverage or it was not renewed after few initial years. But, third party motor insurance is compulsory for automobiles in India.
If you are avoiding your policy just to save some money, then you are more prone to potentially large liabilities. In major accidents or in those where a third party suffers serious damages, this policy comes to your rescue. The premium for this policy is decided by Insurance Regulatory and Development Authority.
If a vehicle is covered and has third party liability coverage, then the compensation sought by this insurance for damages in the event of an accident will be paid by insurer. This compensation can be large as well as disproportionate to the premium.
Under ‘no fault liability’ or ‘fault liability’ of the Motor Vehicles Act 1988, third party can ask for compensation. But, the person who applies for damages will receive the least statutory relief. In case of ‘fault liability claim’, the claimant can ask for unlimited compensation, provided he or she has to prove the other person’s irresponsibility in driving.
But, the claimant can ask for this compensation only for loss of life or bodily injury. Insurance companies in India do no boost claims on damage to policyholder’s own vehicle from another party’s insurance. Insurers have agreed with each other that claims related to damages of their clients’ vehicles will be processed by themselves.
It means if your car is damaged because of an accident, then you should claim the damages to it from your own insurance service provider. Insurers encourage this claim only for damage to property, loss of life or bodily injury. If you not claim your motor insurance policy India, then you can save on the no claim bonus on your insurance.
Those who want to claim for damages under a third party need to register a case in Motor Accidents Case Tribunal. Insured has to file this claim within 60 days of the accident. While registering the case, policyholders have to submit the surveyor’s report and the copies of FIR along with the proof of expenses.