Insurance company to pay Rs 3.35 cr in accident case: Here’s why some covers are a must

An insurance company has recently been directed by the National Lok Adalat to pay a compensation of Rs 3.35 crore to the 70-year-old father of a 28-year-old pilot who died in a car crash on a highway in 2015. According to media reports, although the father of the victim had sought a compensation of Rs 10 crore, the insurance company finally agreed to pay Rs 3.35 crore as the settlement amount, which is still one of the highest payouts in an accident claims case in the country.

An insurance company has recently been directed by the National Lok Adalat to pay a compensation of Rs 3.35 crore to the 70-year-old father of a 28-year-old pilot who died in a car crash on a highway in 2015. According to media reports, although the father of the victim had sought a compensation of Rs 10 crore, the insurance company finally agreed to pay Rs 3.35 crore as the settlement amount.

Although this was a very unfortunate incident, however, it demonstrates the importance of some types of insurance in our lives.

“The very compensation was probably a part of the third-party claim filed by the victim’s family. Third-party motor liability insurance policy protects you against any legal liability arising from your vehicle’s participation in an accident that led to the injury, death, or extensive property damage of an arbitrary third party. If the vehicle is insured and has a third party liability cover, the insurance company will have to fully pay the compensation sought by the third party for damages in case of an accident,” says Atrey Bhardwaj, Category Head–General Insurance, Bankbazaar.com.

Such compensation can be quite large and disproportionate to the premium. Bodily injury, loss of life or damage to property can be reasons to claim against the third person’s policy. In case of death, the dependents of the deceased can claim compensation on the basis of the income lost. Medical expenses can also be claimed for treatment of the injury that was the cause of death. Thus, in the aforementioned case, the income lost by virtue of being dependents of the pilot son, the parents could claim an exorbitant amount of Rs 3.35 crore.

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