Imagine you drove your shiny new car out of the showroom, full of excitement…
And suddenly a speeding biker collides with your car.
What Happens Next?
- The bumper of your car breaks.
- Your heart also gets a shock.
Now the question arises – who will pay for the damage?
- Will the biker compensate you?
- Or will you get it repaired from your hard-earned money?
- Or will you make a claim on your insurance policy on the very first day?
Whatever you do, the loss will be yours. The concept of Third-Party Car Insurance was introduced to reduce this pain.
What is Third-Party Car Insurance?
Third-party insurance is a policy in which, if your vehicle causes damage to someone else – be it someone’s car, someone’s property, or someone’s personal injury – your insurance company will cover that expense.
This is mandatory in India. If you do not have third-party insurance, you may get a challan.
But the real problem arises when you go to claim and find that the process is not easy at all.
Why is it so Difficult to Claim Third-Party Insurance in India?
Let’s take a real-life situation:
You are driving your car, and another car collides with you. It is their mistake, so you have the right to claim your money from their insurance company.
Biggest Challenges:
1. Filing an FIR:
- Inform your insurance company.
- Visit the police station and file an FIR.
- If the damage is minimal, the police might not even file an FIR.
2. Gathering Evidence:
- Submit every detail of the accident with proof – photos, witness statements, and insurance policy details.
3. MACT Court:
- You must go to the Motor Accident Claims Tribunal (MACT) court.
- The process is slow and cases keep dragging.
4. Lawyer Pressure:
- The other party’s lawyer will try their best to shift the blame onto you.
Result?
- Either your case will continue for a long time or
- You will get less money which does not even cover your loss.
How Easy Are Third-Party Claims in Foreign Countries?
In the US:
- Call your insurance company and send the proof.
- You get your insurance money directly.
In the UK:
- Directly contact the culprit’s insurance company.
- They investigate and compensate you if you are not at fault.
In Germany and Italy:
- The same system as in the UK.
- No need to go to court, police, or involve a lawyer.
Why Are Insurance Claims Difficult in India?
- Slow Legal System: Cases can go on for a long time in courts.
- Lack of Awareness: People don’t know the proper process.
- Resistance of Insurance Companies: They don’t make the claim process easy.
Different Types of Insurance
1. Third-Party Insurance:
Covers the loss of others.
2. Own Damage Insurance:
Covers the damage caused to your own car.
3. Comprehensive Insurance:
A combination of third-party and own damage.
4. Zero Dep Insurance:
Covers the depreciation value of the car.
5. Personal Accident Cover:
Covers your injuries and medical expenses.
What to Keep in Mind When Buying Insurance?
- Personal Accident Cover: Covers your medical expenses.
- Zero Dep Insurance: Required for a new car.
- Engine Protection Add-on: Covers engine damage due to floods or other reasons.
- Key Replacement Cover: Helps if you lose your car’s key, as replacing the whole locking system can be expensive.
Why Do Indians Worry About Third-Party Insurance?
- Problems in Making a Claim: The process is long and tiring.
- Court Cases: Cases take so much time that people give up.
- Out-of-Court Settlement: Insurance companies offer less money.
- Personal Expenses: People often cover the damage with their own money.
What is the Solution?
- Simplifying Laws: Make the insurance claims process easy.
- Fast Track Courts: Set up separate courts to settle cases quickly.
- Awareness Campaigns: Educate people about the right process.
- Digitalization: Promote online claims and fast approvals.
Final Thoughts
It is necessary to have third-party insurance in India, but until making a claim becomes easy, people will avoid it. We all have to understand this system and spread awareness.
If you have ever gone through the third-party claim process, do share your experience.
Read the policies carefully before taking insurance and ensure your protection with the right add-ons. This is important for both your money and mental peace.
