Motor Third Party Liability Insurance
Motor ThirdParty Liability (TP) insurance is a cover under which the insured does not get to make a claim, but is covered for any claims that others may make on him. The claimant will be the victim, of a vehicle accident, who sustained injuries or damage to his vehicle or other property. In the case of death, his legal heirs can make the claim against the offending vehicle’s owner and, due to the transfer of such liability via the TP policy, the insurance firm will step in to pay the claim as per policy terms. If there is no TP cover, the owner of the vehicle is responsible for the liability. We saw the procedure for making a TP claim earlier in these columns. It is essentially petitioning a special court called the Motor Accidents Claim Tribunal (MACT). MACTs have a huge caseload, leading to timeconsuming legal proceedings. In cases where claims are filed before the MACT, outofcourt negotiated settlements are encouraged. This will be recorded by the court. Both time and penal ...