ACCIDENT INSURANCE AIMS AND OBJECTIVES
Ever wondered about an accident insurance policy? The article below helps with your query of Accident Insurance Aims and Objectives.
The Main aim and objective of owning an Accident Insurance Policy is briefly summarized below:
Accident Insurance Aims and Objectives:
The significant rise in deaths and disabilities due motor vehicular accident is alarming! Every other day, a person is found to be a victim of vehicular mishaps, one leaves the house to come home and spend time with family, not on some hospital bed or behind bars.
How ready are you, when it comes to insurance for yourself (Own Damage Cover) and the insurance for others (Third Party Insurance)?
Third party insurance covers a mandatory requirement on every vehicle owned by an Indian. However, not many vehicular owners seem to have clarity with the issue of third party insurance.
Do you have an Accident Insurance Policy yet? Let me provide you the the necessary Accident Insurance Aims and objectives of having one –
A typical motor accident insurance policy consists of two distinct covers:
One to cover any damage caused to the vehicle or its owner/paid driver, such an insurance cover commonly known as “own damage cover”
Fulfilling the mandatory requirement of ”Third Party Insurance Cover” as per Section 140 of the Motor Vehicles Act, 1988.
What is ”Third Party Insurance?”
Accident Insurance aims and objectives are:
A “Third Party Insurance” is a mandatory accident insurance policy by law, even if one doesn’t own an insurance for himself, he has to have taken a third party insurance.
‘Third party insurance” covers the owner(in this case the culprit) against any legal liability owing to death or injury of a person (victim) or property damage caused by the vehicle of the owner.
Third party claims are necessarily settled by the Motor Accident Claims Tribunal to provide compensation to the injured victim or the dependents of the deceased or owner of the damaged property.
Furthermore, adjudication secured on the basis of virtue of decree of merits or through a consent decree.
Under the Motor Vehicles Act, 1988, Affected party can file third party insurance claim at a tribunal of place of accident or at a tribunal where the victim or his dependents ordinarily reside or where the owner of vehicle or paid driver reside.
Make sure a complaint with the police, other supporting documents, facts related to the accident put forward as evidence before tribunal for claiming damage.
Under the Motor Vehicles Act, 1988.
More on the Accident Insurance aims and objectives:
According to the Motor Vehicle Act, 1988, third party insurance claims, settled under the category of “no fault liability claims” or “fault liability claims”
Under “no-fault Liability”, the claimant(victim) is under no obligation to allege and prove negligence/omission of the vehicle owner (claimant). The compensation entitlement of the claimant remains restricted to the amount payable as defined under the Motor Vehicles Act, 1988.
However, in a claim preferred under “fault liability” the claimant attributes and proves the negligence/omission of owner of vehicle (culprit) that resulted in accident. Moreover, in this case, the compensation entitlement of the claimant becomes unrestricted and depends upon physical factors such as the residual human asset value or loss of earnings owing to any disability caused by the accident. The only exclusion to “fault liability” arises on account of property damage and not human life.
Moreover, keeping the prevailing structure of the tariff product, the insurers liabilities restricted to a maximum sum of Rs 7.5 lakh. This does not mean that claimant’s entitlements also restricted to said sum. Any amount more than Rs 7.5 lakhs, expected to be borne by the vehicle owner himself. Similar to any other insurance structure, a customer needs to adhere to the terms and conditions required in filing a third party claim.
Find policy makers and lawyers online for tribunal claim.