Last year, over 2 Crore two-wheelers were sold in India making the country world’s largest two-wheeler market. The industry experts believe that this year also the growth would continue to be consumption led as interest rates are expected to remain soft and inflation would remain under control.
However, there is a flip side to the story. While the number of two-wheelers on the road is increasing every day, there is a constant rise in the number of road accidents as well. Unfortunately, accidents have become a regular affair today, as the news is always filled with reports of various kinds of road accidents, especially those involving two- wheelers.
As per the statistics, two-wheelers are involved in 95% of the road accidents in India. To put the death toll due to road accidents in perspective in the last ten years, the average annual road death crashes stand at 1.3 lakh per year. Moreover, over 70 per cent of all the two-wheelers involved in the accidents do not have any kind of motor insurance.
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This is the scenario even when the government has made it mandatory to have at least third-party insurance for all two-wheelers plying on the Indian roads. Third-party insurance instead of providing cover to the vehicle offers protection to third party damages now be it to the property or person caused by the two-wheeler.
Under third-party insurance, the injured party is the only beneficiary of the compensation and in case you are the victim of the accident, you may claim compensation from the two-wheeler involved. While there is no limit on the liability for death or injury, compensation for damage to property is subject to government regulations.
Last year, the government amended the minimum compensation amount payable for third-party fatal accidents and injury claims. As per the amendment, from January 1, 2019, the minimum amount of compensation payable in the event of death will increase by 5 per cent to Rs 5, 25,000 and the minimum compensation in case of minor accidents will increase from Rs 25,000 to Rs 26,250.
When you have caused an accident
In case you cause an accident on the road, the third person involved in the accident holds the same rights as you do. The third party can file a claim through your TP cover in your motor insurance. In order to file a claim through TP cover, the affected third person needs to file a case in Motor Accidents Claim Tribunal against the vehicle owner and the insurance company. For all cases registered, the tribunal decides the final amount of compensation.
However, before filing a claim, you must be aware that there are certain caps on the amount of compensation paid to the victim by the insurance company. For damages to property and vehicle, the maximum amount payable by the insurer is Rs 7.5 lakh. However, in case the compensation prescribed is more than the maximum limit, the insurers will only pay Rs 7.5 lakh while the rest has to be paid by the vehicle owner.
In case of death of the third party or injury, there is no limit and the amount of compensation is decided by the court. In all such cases, whatever amount the court decides, it has to be paid by the insurance company within a fixed time frame.
When you are the victim
While on road, if you or your vehicle gets hit by another vehicle, you can immediately file a claim for medical expenses and treatment of bodily injuries. In case of damage to your property or vehicle, you need to present proper reports from an authorised workshop are required. Original bills and inspection reports will also be required to measure your loss.
If you arrange for required proofs, the third party’s insurance company will pay you. However, in case of death, the dependents of the deceased can file a claim against loss of income.
The claim filling process begins with lodging an FIR at a police station nearest to the site of the accident. Once the FIR is filled, you will need a charge sheet of the chain of events and would require gathering all the important documents.
The next important thing to do is hire a lawyer as all TP insurance claims need to be filled with a special court: Motor Accident Claims Tribunal.
As the court proceedings take place, the tribunal hears both parties – the claimant and defendant - and precisely examine all the evidences presented by the parties. Based on all the provided evidence and hearings, the tribunal decides the quantum of compensation.
(Written by Tarun Mathur, Chief Business Officer- General Insurance, Policybazaar.com)
