It is often that we hear complaints concerning claim payments for third-party motor insurance. In recent days we have noticed more frequent complaints during the rainy and flooding season in Male’ and after the major fire incident that occurred in Male’. Numerous amounts of vehicles were damaged during this period and more people hurried to try and file their motor insurance claims.
Although, what we know from these situations is the lack of knowledge the general public has about the third-party motor insurance scheme, since damages caused by either of the above-mentioned incidents are not covered in a Third Party Motor Insurance Policy.
What is a purpose of a Third Party Motor Insurance Policy?
During the 2000s, the number of vehicles that were imported to Male’ raised significantly. By the time we reached 2010, the number of road accidents we faced increased, causing people major physical and financial damages. When an accident occurs, the Police investigates the situation and conditions the negligent party to compensate for the damages caused. However, due to various excuses and reasons, people fail to compensate the party who followed all the traffic guidelines. And there is not a short and convenient way for Police to implement this process.
In case of an injury or disablement or death due to an accident, there is no compensation amount that can be given to the family. Therefore, during 2011 the government implemented a bill that obligates all vehicle owners to take Third Party Motor Insurance. The government also discussed with all the insurance companies and fixed the rate of this insurance policy as well as the claim process similarly.
Third Party Motor Insurance Policy Rates.
50cc Motorcycle: MVR150
50cc – 250cc Motorcycle: MVR175
250cc and above Motorcycle: MVR250
Three wheeled vehicles used for carriage purposes (private and taxi): MVR250
Car, Van, Bus and Jeep: MVR750
Private and Commercial Vehicles: MVR1000
The main purpose of the Third party Motor Insurance Policy the government focused on was to properly provide a compensation to the adherent party by the negligent party in an accident. Hence, this policy only covers for the damages caused to the adherent party by the negligent party. Therefore, by the implementation of this policy by the government, the relative authorities became obligated to provide compensation to the respective people who faces road accidents.
Compensation amount for;
- Damages caused to the third party vehicle: MVR40,000
- Disablement of death of the third party: MVR60,000
- Deductible (The amount insurer agrees to pay): MVR2500
Along with the implementation of this bill, all the vehicles were obligated to take this policy and the issues being faced to compensate the adherent party facing loss in a road accident was solved. If you or your vehicle gets damaged in an accident, you can apply to allied for claims with the police report and 3 quotations from 3 different garages stating the cost of repair. This policy will cover the amount exceeding the deductible amount MVR2500.
Why do the public have complaints?
Firstly, the public is not aware of the deductible amount in this policy. In the Third Party Motor Insurance Policy, MVR2500 from the total cost of repair must be borne by the customer. Suppose if the cost of damaged caused to a vehicle in an accident was MVR10,000, the insurance company will cover MVR7500. In such cases, a lot of people come with complaints. Despite these complaints, an insurance company will be unable to cover for small damages. If there was no such limit, the policy will not be fulfilling its key purpose, which is to make people more responsible and more attentive to the traffic rules.
Another reason why most people have complaints about this policy because they are not aware that a third-party motor insurance policy does not cover the injuries the person faces, or the damage caused to the person’s vehicle. This policy only covers the damages you cause to another person or their vehicle. Therefore, damage caused to a vehicle by flooding, or theft, or in a fire incident will not be covered in third-party motor insurance.
There are many people who drive around the roads without a license or an insurance policy. The third-party motor insurance policy will not cover for damages caused to an insured vehicle by another vehicle that is not insured and/or if the driver does not have a valid driving license. If people do not have this knowledge, they will surely be frustrated. Therefore it is very important that the public know that though you have an insurance policy, the lack of a valid driving license by either party in the case of an accident, invalidates your claim request. In similar cases like this, most people show their fury to the insurance company, yet if you think about it, these rules are only there to make the public more adherent and responsible. The insurance policy will compensate for your loss as long as you follow the traffic regulations.
How to get compensation for damages caused to your own vehicle?
Although the third-party motor insurance was an initiative the government took not so long ago considering the state then, motor insurance policies that cover for damages caused to yourself or to your own vehicles were already available in the market. Damages caused by flooding or fire incidents will be covered in a comprehensive “full cover” motor insurance policy. Once you submit the vehicle registration and a picture of your vehicle (engine meter number must be seen) to an insurance company, you will a quotation including the annual premium amount. And you will get the cover as soon as you make the payment. This policy will also include third-party coverages. Hence you won’t have to take a third-party motor insurance policy separately. This policy costs a bit more than just a third-party insurance policy. The price is calculated by considering the value and the age of the vehicle. Mostly a new motorcycle of 125cc is to be insured, it amounts to MVR1000 to MVR1500 per year.
You can get your claims for third-party motor insurance, but keep in mind to be careful and follow the traffic regulations. However, these days it’s smarter to opt for comprehensive motor insurance, since the sad truth is that there are so many people who fearlessly violate traffic regulations.