6 Mistakes to Avoid While Claiming a Third-Party Car Insurance

Car accidents are stressful, and what can make the situation worse is having your insurance claim rejected. Third-party car insurance shields you from the financial liability of damages and injuries to a third party in case of an accident. However, to benefit from insurance, you have to follow the rules of the claim process. 

Most people make mistakes in the third-party car insurance claim process. With some due diligence, you can ensure you don’t make the same mistakes and that your insurance claim ends in a settlement, not a rejection. 

Mistake 1: Not Filing an FIR

An FIR, or First Information Report, filed with the police is legal evidence of the accident. From a legal standpoint, the FIR helps with investigations. It is one of the most important documents you must submit for the third-party car insurance claim to be accepted by the insurance company. 

What to do? 

To file an FIR, you can contact the nearest police station and provide details of the situation. 

Things to Remember

1. Not filing an FIR after an accident is a punishable offense. 

2. An FIR can help prove your innocence in the accident or arrive at an appropriate liability amount.

Mistake 2: Not Informing the Insurer

Most insurers require you to inform them of an accident within 24 to 48 hours. This helps the insurer begin investigating and processing your claim. In case of delay beyond 24 hours, there is a possibility of the claim being disapproved. Timely notification reduces the chances of a claim rejection. 

What to do? 

If an accident occurs, gather all the evidence. Photograph the accident scene and get the details of the other party involved. Then, contact your insurer. You can call them or contact them online via the dedicated website or app provided. 

Things to Remember

1. Keep your insurance policy information handy when driving.

2. When you claim third-party car insurance, the more documents you submit, the greater your chances of a successful claim process. 

Mistake 3: Fleeing the Site

While being involved in an accident can be scary and might immediately trigger a flight response, you must stay calm and composed. Fleeing an accident site can result in severe legal repercussions and complicate the third-party insurance claim process. 

What to do? 

Stay on-site and assess if anyone, including yourself, is injured. Document everything through photos. Exchange contact and insurance information with the other party involved and report the accident to the police. 

Things to Remember

1. In the stress of an accident, never admit to mistakes you didn’t make. This can complicate legal and insurance claim processes. 

2. Take notes on the situation and record your immediate recollections after the accident. 

Mistake 4: Withholding Details of Accident and Damages

Providing inaccurate information in the third-party insurance claim process may result in partial or complete claim denial. Your information helps your insurer determine the extent of financial losses and calculate the compensation accordingly. 

What to do? 

Capture all evidence you can and make a detailed list of all damages in the accident. When informing your insurer, describe the situation in detail and do not omit details that you think might affect your claim outcomes negatively. 

Things to Remember

1. When filing a claim, ask your insurer for guidance if you need clarification on disclosing certain information. 

2. The more documents you submit, the smoother the claim process. 

Mistake 5: Paying Out of Pocket

If you pay for damages out of pocket, it is an indirect sign to your insurer that you accept liability for the accident. This can undermine your position in the claim settlement process, and the insurer may reject your claim. 

What to do? 

Contact your insurer and seek clarifications on their rules for out-of-pocket payments. 

Things to Remember

1. Always contact your insurer before agreeing to make any payments. 

2. If you do pay, document all your transactions. 

3. Understand what your policy covers to avoid unnecessary out-of-pocket payments. 

Mistake 6: Accepting a Cheque as Final Payment

In the third-party insurance claim process, the insurer may present you with a cheque marked ‘full and final settlement’. Accepting this can be a mistake, as the insurer may not consider any additional claims you make. 

What to do? 

If you are presented with a cheque, negotiate with the insurers for a comprehensive assessment of damages. You can contact a legal professional to review the claim settlement offer. 

Things to Remember

1. Do not rush. Take time to consider settlement offers. 

2. Ensure that a detailed damage assessment is done. 

3. Do not hesitate to negotiate with your insurer. 

Key Takeaways

If you are involved in an accident, remember to follow all the guidelines set by your insurer. This will help you in the claim settlement process and the legal proceedings that usually follow an accident. Additionally, you consider platforms like PhonePe to simplify and streamline your car insurance purchase experience.