It was a great sunny day, and Mr. Raj was excited to attend an important business meeting with a prospective client. He was all set to pitch to his new clients with an outstanding presentation which he prepared after due research and hard work. He got ready to attend the meeting in his formal attire, took his bike keys, and began his journey to the meeting venue.
He was a bit nervous due to which he suddenly collided with a car, causing a lot of damage.
“Thank God! I have third-party insurance cover for my bike," Raj sighed with relief. He took the contact number of the car owner and assured to indemnify him for the losses on getting the claim settled from his insurer.
Two weeks later, Mr Raj filed a bike insurance claim for this incident. His insurer rejected it due to the improper claim made, which was also delayed by two weeks. Ultimately, he had to bear the losses from his pocket. He was perplexed and wondered why the claim was rejected?
Are you also wondering the same? Are you worried if the same would happen to you? Or what should you do to avoid such scenarios? Don’t worry! In this article, we have compiled the common mistakes you should avoid while claiming insurance cover for a third party.
But before that, let’s first briefly discuss third-party liability insurance covers and the consequence of not having the same.
Third-party Liability Insurance Cover
The main feature of third-party bike insurance is to provide cover against damages to the third party only. Unlike a comprehensive plan, it does not provide a shield against the damages to the policyholder's own two-wheeler. In India, a third-party liability insurance cover is compulsory to protect your vehicle against legal hassles.
The Insurance Regulatory and Development Authority of India (IRDAI) has recently issued the modified third-party premium rates for FY 2022-23. These rates are effective from June 1, 2022, and are notified as under:
|Cubic Capacity of Two-wheelers||Premium Rates for Single-year insurance (INR)||Premium rates for Long-term Insurance (INR)|
|For up to 75cc|
|More than 75cc and upto 150cc|
|More than 150cc and upto than 350cc|
|More than 350cc|
Important! If you do not cover your two-wheeler with an insurance policy, you may be exposed to a penalty of up to INR 2000 or imprisonment of up to three months or both, says the Motor Vehicles Act, 1988.
4 Mistakes to Avoid While Claiming a Third-party Insurance Cover
1. Losing Composure and Escaping the Accident Site
Not everyone is a brave heart to face road accidents firmly. But that should not make you flee from the accident site. Maintaining your composure and avoiding escaping or removing your bike from the incident site is critical. In case of any serious injury to you or a third party, the very first thing you need to do is to make necessary arrangements for medical treatment.
2. Not Filing the First Information Report (FIR)
You must not forget to file an FIR for the accident. This is the most important evidence of the incident, describing all its details. Hence, it is a crucial part of a successful claim, especially in the case of third-party losses like death or injury.
3. Delaying Filing a claim
Ensure that you notify your insurer as soon as possible. It's also critical to let the insurer know before you give your two-wheeler for repairs. A minor delay in informing the insurer is allowed; however, a significant delay may result in your claim being rejected.
4. Signing Documents / Accepting a Cheque Marked 'Final Payment'
Never sign any paperwork produced by a third-party's insurer without first seeking legal guidance. Accepting a cheque marked 'Final Payment' is also a big no.
Besides the above four mistakes, please ensure that you do not panic in such a situation and keep in mind the following things:
- Do not panic at the scene of the accident. Calm down and compose yourself; this will help you determine the next course of action.
- Capture the evidence, e.g., click photos of the affected vehicle. This will help you in speeding up the claim filing and settlement process.
- Always complete the necessary formalities and post-accidental paperwork.
- Ensure to collect all the relevant third-party details like vehicle number, contact number, insurance details, etc.
Important note: Riders/drivers are recommended not to drive while intoxicated. They must always carry the necessary documents like an bike insurance policy, registration certificate, and driving license while using their vehicle. They are advised not to drive rashly and always follow traffic rules and lane etiquette to avoid road accidents.
The Key Takeaway
Filing a third-party claim is a cumbersome and time-consuming process. There are high chances of these claims being rejected. However, following the above guidelines will reduce the possibility of rejection of your claim. So the next time you encounter any such situation, remember this article's guidelines!
For more detailed and comprehensive knowledge about bike insurance options, visit Paytm Insurance.
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