What Is A Motor Insurance Policy?
A motor insurance policy covers the owner from any financial losses incurred as a result of an unforeseen circumstance, like an accident, natural disaster, theft, etc. Any damages to the insured vehicle, the policy holder or third-party will be covered by the insurer. Read more on our guide to Motor Insurance here.
It covers one against liability arising from bodily injury or death of a Third Party as a result of the insured vehicle accident subject to the pre-set limits.
Who is NOT covered under the Statutory Motor Third Party Insurance?
- The policyholder (1st party), his vehicle, driver and other employees, or immediate family members.
- Third party property damage i.e. Costs arising from damage to the 1st party’s vehicle or any other form of property damage..
Who is a “Third Party” under this cover?
1st Party : The owner of the Vehicle, Van or Motorcycle
2nd Party : The insurance company, that has issued the insurance policy (i.e. the risk-carrier
3rd Party : Any other person who may be affected by the contract. The Third Party may be any road user such as the vehicle passenger or pedestrian involved in the accident (the accident victim
How Can A Motor Insurance Policy Help You?
1. Protect Yourself and Others
An unforeseen event like a car accident can happen anywhere, at anytime and to anyone – regardless of who’s in the vehicle. One of the most important reasons to get motor insurance is to protect yourself and others. For instance, if you do get in an accident and you don’t have a reliable insurance to cover your costs, you’ll incur a heavy expense to cover any injuries caused to yourself or another individual. Our motor insurance policy ensures to cover medical expenses incurred as a result of any injury caused by an accident. Your medical bills from surgery to hospital visits will be paid for by the insurance company; inevitably saving you time and money.
2. Protect your Vehicle
A motor insurance policy primarily acts to protect your car, bike, or other personal vehicle. With a comprehensive motor insurance policy, rest assured that any damages caused to your vehicle during an accident will be covered by your insurance provider. i.e. whether you need to send it for repairs after an accident, or your car has been stolen, or has suffered any damage as a result of a natural calamity like fire, riots, explosions, strikes etc., we will ensure you don’t have to bear the expenses to repair and restore your vehicle.
3. Covers Third Party Damages
Still wondering why it’s important to get motor insurance? This policy will ensure that if you are involved in an accident that involves a third party, whether a pedestrian, another vehicle or someone’s property, your expenses to repair, pay for hospital bills, etc. will be covered by the provider. Without a comprehensive insurance cover, you will have to pay damages to any third party; from hospital bills, property or vehicle repairs. Our motor insurance cover protects your finances and reduces your liability.
4. Covers Legal Costs
More often than not, victims of accidents will attempt to sue you for damages or injuries. In the event you are facing a lawsuit, our motor insurance policy will protect your wallet from incurring these expenses. Legal fees can really burn a hole through your wallet and savings, so we ensure that any significant expenses that should arise from a case filed against you for a road accident, will be taken care of.
In most countries, like Sri Lanka, motor insurance is a legal requirement. Whether you opt for a basic or a comprehensive cover, it is illegal to operate a vehicle, personal or business-related without a motor insurance. For more information on our policy,
Motor Third Party Insurance claim process
- The moment the vehicle gets involved in an accident; report the incident to police and the Insurer.
- Where possible, the police will visit the accident scene to gather facts about the accident.
- Reporting the accident starts off the claim process because all the other parties involved have specific roles to play.
- After giving notice to the insurer, you will be required to fill an accident report form providing the following details;
Facts about of the accident
Particulars of date, nature and circumstances of the accident;
Any other details the insurer may reasonably require in relation to the accident.
The law provides that once all documentation has been submitted, accurate and with undisputed, the insurer will settle a claim within sixty (60) days of reporting the incident. In cases where disputes arise, the claim should be settled within thirty (30) days after the dispute is settled.