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Home / Auto / Settlement Of Claims

Settlement Of Claims Under Auto Insurance

Third Party Property Damage

In these cases, normally the insurance company and the claimant (that is the third party) arrive at the amount of settlement together after taking various aspects into consideration.

Third Party Personal Injury

Most of the injured parties do not agree for compromise settlements and prefer to go to the Motor Accidents Claim Tribunal (MACT). The auto insurance company has to settle the court award plus a rate of interest of 120 percent per annum from the date of filing the case. 

The amount will be deposited in the court and the court will pay the compensation money to the legal heirs of the dead.

Driver's Death Or Injury

In case the driver is dead or injured, the driver's legal heirs will make a claim to the Workmen Compensation Commission and the concerned authorities will allot the award in accordance with the Workmen's Compensation Act and the Insurance Company has to pay that award.

Own Damage

Along with the claim, if the vehicle sustained any damage due to the accident, the insured policyholder will submit an estimate for repairs from a reputed motor repairer.

Generally, the insurance company will send a Surveyor to assess the damage in accordance with the Break Inspector's Report and he will put forward his recommendations.

Finally, the vehicle will be repaired and the insurance company will get a declaration from the insured policyholder to the effect "that the vehicle has been repaired to the satisfaction of the Insured" and then the claim cheque is issued.

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