Page 207 - DCOM309_INSURANCE_LAWS_AND_PRACTICES
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Insurance Laws and Practices
Notes The procedure for third party claims is briefly described as follows:
1. On receipt of notice of claim from the insured, or the third party or from the MACT, the
matter is entrusted to an advocate.
2. Full information relating to the accident is obtained from the insured. The various
documents are collected and these include:
Driving Licence
Police report
Details of driver’s prosecution, if any
Death certificate, coroner’s (PM report) report, if any (fatal claims).
Medical Certificate (bodily injury claims)
Details of age, income and number of dependants etc.
3. A written statement is then filed on the facts of the case with the MACT by the advocate.
Eventually, if the award is made by the MACT, the amount is paid to the third party
against proper receipt.
Did u know? Compromise Settlements
Where there is clear liability under the policy, claims are negotiated with the third party
to accept a compromise settlement, which if accepted by the third party, is registered with
the MACT and its consent obtained. The cheque is deposited with MACT for disbursement
to the rightful beneficiaries.
Lok Adalats
Pending cases with the MACT where the liability under the policy is not in doubt are placed
before the Lok Adalat or Lok Nyayalaya, for a voluntary and amicable settlement between the
parties. A copy of decision in the prescribed memo and the cheque is deposited with MACT. Lok
Adalat sessions are organized regularly by the insurance companies in liaison with the Legal
Aid Board of each State and MACT to effect amicable settlement of third party claims.
No Fault Liability
These claims can be made by depositing the appropriate amount with the MACT after obtaining
death certificate, medical certificate and police report.
Self Assessment
Fill in the blanks:
11. When a tribunal has been set up for an area, no civil court has any jurisdiction to entertain
any claim falling under the …………………………………… jurisdiction.
12. A copy of decision in the prescribed ………………………… and the cheque is deposited
with MACT.
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