There may be examples when your third-party insurer cannot claim any claims made against his policy by the third party (victim). And this is also the case with a valid TP motor insurance. Because of this, you can pay a large amount of money from your own pocket as compensation to the affected third party.
Your third-party insurer can move back from paying for compensation, and if you can avoid such situations, learn about those examples.
What is a third-party motor insurance and when can it be rejected?
The idea behind this insurance cover is to protect and compensate for the damage damage caused by the insurer’s vehicle, which includes its car/bike for the third party, which includes a pedestrian, another car and residential passengers. The policyholder is that you are not eligible for any coverage under you or the relevant vehicle TP insurance.
TP cover does not work if the premium is non -subsidized
If your third-party motor policy is not active, then your insurer may reject the claims under the third-party insurance before or at the time of the premium without premium.
Driving a car under the influence of alcohol or drugs
If the driver is found to be under the influence of drugs or alcohol, it can become a field to reject this claim. Lockton India Chief Executive Officer and Head of the country, Sandeep Dadia, says, “If other terms under which your TP can refuse to honor the insured claims, you have found that you are driving under the influence of alcohol or drugs.”
Not a valid license or driving with the wrong purpose
Lack of a valid license may also be the reason for the rejection of TP rights. “If the driving person does not have a valid driving license or if you find a vehicle for non -policy purposes (eg, using private cars for commercial reasons), the TP insurer can refute any claims,” ​​Dadia says.
For a standing claim, your driver’s license should be active and should not expire to be valid. A learning driving license is legal, but it is mandatory for a learner to sit on the side of an experienced driver with a valid, regular license while driving. Also, the learner should have painted the ‘L’ sign in the back of the vehicle and the front.
If one of these two terms is found to be violated by just one learning license, the TP insurer is in the right to refuse to pay compensation.
If there is no valid fitness certificate
Dadia further adds that TP insurer may refuse to pay if there is no valid vehicle fitness certificate in the vehicle causing loss. Significantly, the fitness certificate of the new private vehicle is valid for six years, after which it needs to be renewed every 5 years.
If the policy is in a grace period without premium payment
In motor third-party insurance, there is no provision for the Grace period. Therefore, the claims will be accepted only if the policy is active and valid during the incident.
What happens if premium check bounce?
In the outcome of 2, the Karnataka High Court had blamed the insurance company to compensate for the third party, even if the insurer had not properly communicated the policy holder before the premium payment.
The paid amount may be recovered by the insured in the event of a violation
Even if the insurance company compensates for the claim but then any violation, it can recover the amount from the policyholders. “In cases in which the insured violates the terms of the policy, the insured can honor the third party claim but later recover the amount from the insured. This is known as subbrotation,” Dadia explains Dadia.
However, the policy holders still have a way left. “If there are controversies about the violations of the insurer, the matter can be taken to the motor accident claims, Tribunal (MACT) or competent court. The tribunal/court will determine the responsibility of the insured and the insured on the basis of the lawsuit and the situation on the basis of the case,” Dadia further said.
How often can a third-party insurance be claimed in a vehicle life?
There is no limit to the number of third-party claims made during the validity of the TP Motor Insurance Policy. Each time a vehicle affects an accident that causes injury, death or property damage to a third party, the victim can file a claim, if the incident occurred during the policy period and the claim is in the limits.
Generally, all motor policies are issued for a year and needs to be renewed every year. However, new two -wheelers will have to be forced to insure for 5 years against TP risk, and for 3 years for the new private car TP risk should be insured for 3 years.
The legal auto cleme team, Tata AIG, “If the same insured is obliged to solve every legal claim in accordance with the terms and conditions of the policy, the TP insurance is working on the constitution based on the incident instead of a lifetime limitation method.”
Premium for TP insurance according to IRDAI
Source: Iradai Order Date 04.03.2022, Policy Bazaar
Source: Iradai Order Date 04.03.2022, Policy Bazaar
Is there a financial limit on the losses paid by TP insurance?
Universal Sompo General Insurance Main Technology Officer Per Artie Mulik, “For property damage, which includes other party vehicles, buildings and more, the limit is Rs 7.5 lakh.”
In the case of physical injury or death, the coverage for the third party is unlimited. This involves medical expenses and compensation for the injuries to the other party in the event of an accident.
However, experts have a different opinion. Per Dadia, 2019, a limit of Rs 7.5 lakh was removed under amendments to the Motor Vehicles Act, meaning there is no financial limit in the third-party insurance for the property.
Regarding coverage for the loss of properties, the insured can choose from two options. One is a limited third-party plan and the other is a common thing. It is important to remember that even in a limited third-party plan, physical injury or death coverage is unlimited without any financial maximum limit.
Policy Bazaar, Motor Insurance Head Parasa Pasri explains that the loss of property under a limited third-party scheme is done to Rs. “This means that the insured is responsible for paying the property loss up to Rs 6,000. The insured will have to pay more compensation than the limit.
Persons who are considered a third party
Imagine it. Mr. A is driving your car. He has 4 friends sitting next to him, who do not belong to him. One of the car accidents met and the two passengers of the car (Mr B and C) suffered significant damage to the other party and the other party on the road. Mr. B and C will also be responsible for compensation as per TP?
Dadia explains that in this case, the passengers will not be eligible for any compensation. “According to the compulsory of the Motor Vehicles Act, 1988 88, the third-party insurance is especially the third party (pedestrian, other vehicle or property owner) who has been created to suffer injury, death or property damage due to the vehicle of the insured.
“However, if the insurer selects an additional cover like a personal accident cover for an unknown passenger, the loss to the residents of the insured can reach the sum of 2 lakh insured. There are some insureds who have now started offering an enhanced personal accident for insured, adding, it has added.
A recent order by the Rajasthan High Court under the bench of Justice Nupur Bhatti also confirmed that in the case of a private vehicle insured against the “only law”, the Motor Vehicles Act, 1988 (as the “law”, is not responsible for compensating for the residents of the vehicle.
But in the past, the United India Insurance Company Limited Vs. In the case of Karam Chand and ORS, the Jammu and Kashmir High Court had proved that the third parties include the use of a motor vehicle in public or all the other people involving any other vehicle. As a result of such an accident, all these persons have been compensated.
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