You might have heard about third party insurance. It could be you even have it as a part of your car insurance policy, but you are unsure what it means. This article will specify all details related to third party insurance claims, when and how to file them. Here is what you need to know about your policy!
What Is The Definition Of “Third Party?”
The person who signs the insurance policy is the first party, while the company providing the deal is the second party. Those are the two main participants of the insurance policy. However, since car insurance deals refer to vehicle accidents involving other people and objects, we need a name for them. That’s why the industry implemented the term “third party.” If you hear “third party,” that refers to someone who participated in an accident but isn’t a part of the insurance deal. The third party usually suffered injuries, material, or other consequences in the incident.
Requirements For Making A Third Party Claim
You can participate in two accident types. The first one is an incident where you are to blame, and the second is an accident that wasn’t your fault. Filing third party claims are only possible in the latter case, which means you shouldn’t be responsible for the accident. Another requirement is that the participant you are claiming against has a third party policy. That insurance is the basic one in Malaysia, so a massive majority of vehicle owners have it. You make a third party claim against someone else’s policy, which means it doesn’t have anything to do with your insurance. That’s good because you can keep your no claim discount (NCD)
How To File A Third Party Claim
It might be your first time you need to file a third party claim. If that’s the case, it’s vital to follow the right step. Those include:
- Make sure to file a police report shortly after the accident. It should be within 24 hours of the incident. If possible, remember to take photos of the scene and the damaged vehicle. That’ll help you prove you aren’t to blame for the incident.
- Talk to the other driver about their insurance policy. Once you discover the company they are insured with, find out the workshop partnered with them. Take your vehicle to that mechanic to estimate the damage costs.
- It’s wise to contact a professional adjuster who will independently determine the damage costs, too. That way, you’ll know the estimate is realistic.
- The adjuster creates a detailed report about the damage. That report includes actual damages to cover repairs plus compensation for the time when you can’t use your car. You will receive additional money for every day you can’t drive the vehicle.
- It takes about a week for the adjuster to complete the report. Once you acquire it, deliver the documents to the insurance company. Please note you send documents to the agency whose policy you are claiming against!
Apart from the report, you’ll also need your driving license, NRIC, the police report from the actual department, and the one you made. The regulations indicate that you pay for damage costs to repair your vehicle. Once the process finishes, you receive compensation as stated in the report. If you feel like you don’t have a straightforward case, it might be smart to contact a lawyer to guide you through the process.