How Third Party Car Insurance Handles Claims for Property Damage?

Posted on: Feb 27, 2025 | 3 mins | Written by: HDFC ERGO Team

How Third Party Car Insurance Handles Claims for Property Damage?

Car accident with two vehicles and a man reviewing third-party insurance claim documents

Buying a car online or offline acts as your first step towards ease and comfort. With a vehicle by your side, you can travel around. Moreover, it allows you to stay prepared to travel if needed. However, you must get car insurance as well.

Getting car insurance offers you financial safety, especially when facing fire accidents, natural disasters, and any such problems involving your vehicle. You may opt for third party car insurance to offer extra safety and coverage to your travelling. While your own damage is beneficial, it is advisable that you get a third party as well.

What is Third Party Car Insurance?

The Motor Vehicles Act of 1988 requires vehicle owners to get third-party car insurance. As this is a government-mandatory requirement, the policyholders will be compensated for the specified amount in case there has been damage or any financial loss due to an accident.

Third-party car insurance will cover the legal liabilities from the accident that caused property damage or bodily damage to any third-party party. Therefore, filing for a third party insurance claim can be beneficial in numerous ways. It acts as a financial protection in case of any damage due to accidents caused by third-party damage, such as passengers, drivers, and pedestrians. This type of car insurance will allow you to cover all the financial losses and safeguard your assets against any financial liabilities.

How to Claim 3rd Party Insurance?

Once you apply for this, you need to understand how to claim 3rd party insurance. It is to ensure that you get a hassle-free and smooth transition process that protects you against any potential damages. Moreover, it is advisable that you choose an insurer who is prompt with the claim settlement process. This will prevent the risk of disputes and unwanted delays during the claim process.

Below are some of the key aspects you will have to consider for the third party insurance claim process. These will be valid in case of any accidents.

1. Medical expense claims are made in case of any property damage or physical injury, including hospitalisation bills.

2. Compensation claim, which is crucial for physical disability that happened to any third party.

3. Any compensation claim where the money was paid to the victim's dependant on the third parties because of death due to accidents.

If there is an issue and the claim amount exceeds the limit capped by IRDA (Rs 7.5 lakhs), you will have to pay the extra balance.

What is the Third Party Insurance Claim Process?

You need to be familiar with the third party claim process so that you can get the settlement immediately. This plays an important role in avoiding any significant challenges that can significantly negatively impact the later run. Moreover, if you're not following the claim process properly, there's a chance that you may lose out on all the information.

You need to follow the steps mentioned below for the claim process:

1. You must go through the agreed policy terms and then inform the insurer about the accident. Every insurer specifies a specific period within which they must be informed. Make sure to adhere to the timeline.

2. File an FIR at the nearest police station immediately. Submit a copy of the files FIR to the insurer as and when required.

3. Fill out the form correctly and add all the necessary documents for the third-party insurance claim. However, note that the claim process might be slightly delayed because of the permanent disability or death to the third party.

4. During the accident, if there's any crime, it will have to be registered under the Motor Accidents Claims Tribunal.

5. The court will hear both parties and go through all the submitted proofs before deciding.

6. The court will provide the judgement and compensation. You can submit the required report to the insurer and claim your compensation based on the judgment.

What Documents Are Required for Filing the Third Party Claim?

To file the third party claim, you will have to go through all the information. After that, you will have to submit the necessary documents to raise the liability insurance claim. Therefore, the documents required are as follows:

1. Copy of the Driving License

2. Signed and Files Claim Form

3. Copy of the FIR

4. Copy of Policy Document

5. Copy of vehicle registration certificate

What are Third Party Insurance Claim Rules Under Different Scenarios?

You need to be aware of the third party insurance claim rules under different scenarios so that you can file for them properly. Following the claim process properly ensures that the claim can be settled quickly.

Here are some of the rules that you will have to follow so that you can file the claim immediately:

Disability, injuries and death

The third party insurance claim process should be followed as per the given information for the disability, injuries and death:

1. You need to file the FIR immediately and prepare an extra copy of that.

2. Submit the documents to your insurer and inform them about the same immediately.

3. Hire any professional and experienced motor claim layer for a faster claim settlement process.

4. If required, you may choose an out-of-court settlement upon reaching a mutual compensation amount.

Property damage

If there has been any kind of property damage, you will need to follow the rules stated below:

1. The damage should have been incurred by the vehicle and your personal property.

2. The FIR and a copy of the settlement claim should be filed immediately.

3. The maximum limit for which the claim can be made is Rs 7.5 lakhs.

The claim can be filed at the local tribunal court to decide the final compensation.

Final Words

In today's world, car insurance is a necessity, especially when driving along Indian roads. While there's comprehensive coverage, it is also advisable to opt for third-party insurance coverage. However, the types of perks you will get completely depend on the extensive terms and conditions mentioned in your coverage. It is advisable that you opt for a quick and easy settlement so that you don't face any major challenges in the long run. You can check out the third party insurance claim process by the insurer so that you can make the right choice.

FAQs

1. Will the third-party car insurance provide coverage for damage?

Your third-party car insurance is very likely to provide coverage for damage caused due to any unforeseen circumstances. However, it may vary significantly depending on the insurance provider.

2. How much does the third party car insurance cover?

This completely depends on the coverage you're choosing and the premium you're paying. Usually, it is advisable to check with your insurance provider on how much they will cover and for what aspects.

3. Can I file for the third party insurance car claim online?

Yes, you can surely file for the third party insurance claim online. You may check your insurance provider's procedure to apply for the same accordingly.

4. Should you pay an extra amount for the insurance?

No, you don't have to pay any extra amount apart from that of your insurance premium in case of coverage for any road traffic accident.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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