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Know your rights as a third party in case of motor accidents

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Published on August 9, 2021. EST READ TIME: 3 minutes

Being involved in an accident can be a harrowing experience. However, the sad truth is that India is the country that witnessed the highest number of road accidents. Things become worse if you are a third party who has suffered in an accident in which you had no role to play at all. While the trauma of an accident can be immense, the government has made it mandatory for vehicle owners to provide adequate monetary compensation to third party victims. This is the reason why third-party car insurance is a must for anyone to legally drive a vehicle on a public road in India. So, assuming that you have been involved in an accident, here are your rights as a third party.

• ●Right to receive information:

   This is your first and most basic right. It means that any victim of an accident has the right to get information about the insurance policy of the vehicle that has caused the accident. You have the right to know the third-party policy details as well as the validity of the policy. You also have the right to know if the person was required to hold valid insurance but does not hold one. Further, you also have the right to check for any vested or transferred rights as per the section 150 of the law, as applicable.
• ●Right to remain unaffected:
  This right is conditional based on any of these two situations that may arise. The first situation is that a court has passed any judgement or pronounced any award against the person whose insurance is in question. Third parties remain unaffected by court judgements and awards unless they were duly notified by the courts. Second is when the insurance company and the person holding the policy have entered a contract which restricts the insurer liability. Such contracts are deemed illegal. Any policy settlements will be considered valid only if the third party also becomes a party to the settlement.

• ●Transfer of right of insured, against insurer, to third party:

  As per the law, the insurance company is required to fulfil all obligations caused by the insured person for which insurance has been taken. If the insured person has become insolvent for any reason whatsoever, the liability of the insurance company, which would have been towards the policyholder originally, will automatically get transferred to the third party in question. If despite such transfer, the liability towards the third party is still not fulfilled, the remaining liability will have to be fulfilled by the insured person.

• ●Liability of insurer towards third party: 

  The liability of the insured towards the third party will continue to exist only until the set limits, for example, where the set limit for damage of property is Rs 6000. It must be noted that in case where the vehicle was sold from one person to another but transfer of registration was not done, yet the new buyer continued to renew insurance in the name of the original insurer, the insurance company will not be considered liable. The said liability would be considered collapsed from the day on which the vehicle was sold.

• ●Hit and run cases:

   Hit and run cases are considered problematic. In case of a hit and run scenario, if the third party is grievously injured or passes away, their legal heirs will be eligible for compensation as laid down by the law. In case of such compensation being already paid to the victim under any other clause of the Motor Vehicle Act, such compensation will have to be returned to the insurer.

• ●No need to establish death or permanent disablement:

  Do keep in mind that the victim will not be required to plead or prove that such an incident has taken place in order to make the compensation claim.

As a third party, the law has made arrangements for you to receive adequate compensation from a third-party car insurance policy. On your part, you are required to present valid documents when asked, as well as provide adequate information. You also need to make sure that any excess payments are returned to the insured in good faith.

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

 

Related Articles

• Why You Should Have A Third Party Insurance Policy?
• Importance of Third Party Car Insurance
• Third-Party Insurance for Dummies – Your Guide to Understanding the Policy

 

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