Common Mistakes While Filing Commercial Vehicle Third-Party Insurance Claim

As per the Motor Vehicle Act, 1988, it is mandatory for all the vehicles plying on the roads of India to get at least third-party insurance. A third-party commercial vehicle insurance policy offers coverage against any financial liability that comes out from any injury, damage, or loss to any third-party property or person during an accident. Different than a comprehensive commercial vehicle insurance plan, third-party insurance does not offer coverage against damage that is caused to yourself, your vehicle, or fellow riders and the third-party. Read more

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So, third-party commercial vehicle insurance provides coverage in the following situations:

  • In case of third-party property damage
  • Death or injury caused to third-party

Process of Filing a Third-Party Commercial Vehicle Insurance Claim

Follow the below steps for filing a commercial vehicle insurance claim in case of third-party insurance:

  • Upon meeting with an accident where a third-party has got an injury, the first thing you must do is to make a call with the nearest police station. For keeping yourself safe from any further legal trouble, it is suggested to file an FIR for supporting the third-party claim (if it arises out of an incident). Never delay this process because it can create legal issues, so it is advised to file an FIR for supporting the third-party claim (if it arises because of an incident). So, never delay this process because it may create hassle while you are going to settle the claim.
  • After this, inform your insurance provider. Make sure to call and inform your insurance provider within 48 hours of the accident. Most of the time, the companies have a rule under which you should contact them for informing them about the incident.
  • If possible, collect photos of the incidence. The photographic evidence works best in claiming the insurance in case of an accident of a commercial vehicle. Take pictures of the site of the accident, injury, damaged property, or car.
  • For proof, try to note the names of the witnesses present at the time of the incident and get their phone numbers.
  • Note the details of the insurance of another party that is involved in the accident.
  • The area wherein the incident has taken place, register the case in the tribunal court. You can as well file a complaint in that area’s jurisdiction where the third-party or you reside.
  • In the case of third-party claim settlement, the court does not decide the amount of compensation that has to be offered to the third-party.
  • Keep track of all the documents, receipts, and the number and name of the representative of the insurance company until the claim is settled.

Common Mistakes to Avoid While Filing Third-Party Claim for Commercial Vehicle:

Not Reporting to the Police

Many times, in the case of an accident, people fail to inform the police for avoiding hassle. However, if you are the one who wants to settle the claim for the losses that have incurred from an accident, it is necessary to inform the police instantly after the accident.

Running Away from the Accident Spot

The most common mistake that people do when they encounter an accident is running away from the accidental spot or some people move their vehicle. However, to avoid claim rejection, you should not move from the place of the accident instead you must click pictures of the spot of the accident as proof for acceptance of your third-party commercial vehicle insurance. The evidence in the form of pictures will also help you to prove your innocence if a police investigation takes place. If any kind of medical help is required, then you should move without moving your commercial vehicle from the spot. At last, you should get testimonial or statements from the witnesses who are near the spot. This will help you in case of a claim settlement.

Not Informing the Insurance the Insurer

Same as it is important to report to the police about the accident, it is also necessary to inform your commercial vehicle insurance provider about the accident. Most of the insurance providers have a window of 24 hours to 72 hours for informing the insurance provider regarding the accident. If you fail to report the insurer about the accident can increase the risk of claim rejection.

Never Employ Your Private Vehicle as Commercial Vehicle

One of the biggest mistakes that some people do to not to register their private vehicle in the commercial vehicle category despite using it for commercial use. If you are using your private car as a taxi, then get it registered as a commercial vehicle. This is because if you do not do this, you will end up claim rejection in case of a mishap.

Never Load Your Vehicle More than Its Capacity

Do not load your commercial vehicle more than its specified capacity. In addition to this never load your vehicle more than its passenger sitting capacity. This again can become a reason for claim rejection in case of any mishap or accident.

Never Pay Out of Pocket

There are times when a third-party gets a minor injury or third-party property gets damaged. In such situations, you should not pay from your pocket for settling the matter. This is because doing the same without the consent of your insurance provider is not legal. If you do so and the third-party files a claim from its insurer or legal case against you, then your claim can get denied.

Never Accept Final Payment Cheque

There are times when the insurance provider tries to settle the insurance claim by issuing a cheque with the name of ‘Final Payment’. However, you must avoid accepting such cheques unless you are convinced with the amount and is sufficient to cover your damage. As per the rule, you should file a commercial vehicle insurance claim properly and get it settled.

Wrapping It Up!

So, avoid the aforementioned common mistakes while filing a claim for your commercial vehicle and get it settled easily. If you follow the correct guidelines for filing a commercial vehicle insurance claim, then you can get the appropriate compensation from your insurer.

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