When two motor insurance companies reach a knock-for-knock agreement, they agree to pay for their customer’s car’s repairs rather than blame the other driver. Instead of the third-party liability component of the policy, the own damage component will be used to pay the claim in this situation.*
A third-party insurance policy should help you recover the repair costs if your car is damaged due to someone else’s negligence. In this situation, you will be compensated for losses brought on by the other driver’s third-party liability component by the at-fault driver’s insurance company. However, as was previously mentioned, you must show that the other driver’s negligence was to blame for the collision. And a court of law, specifically The Motor Accident Claims Tribunal, is the only venue for proving it. Car accident victims can fight for compensation in this civil court. However, pursuing such cases requires spending a lot of time and money (legal fees). Therefore, choosing the knock-for-knock agreement between insurance companies seems more logical.*
Agreement Of Knock-For-Knock Within India
The General Insurance Council created the knock-for-knock agreement, established by the IRDAI in 2001. It stands for all Indian general insurance providers. The knock-for-knock agreement is not required to be signed by a comprehensive car insurance provider. However, they can avoid the buildup of third-party claims that will be taken to court by entering into this agreement. By signing this contract, you can speed up claims processing and reduce the expense and work needed to resolve third-party claims.*# Claims are subject to terms and conditions set forth under the car insurance policy.
Benefits Of The Indian Knock-For-Knock Agreement
As demonstrated, the knock-for-knock agreement can bring about security. By avoiding protracted court proceedings, you and your insurance company will save significant time and effort. The knock-for-knock agreement relieves you of a lot of stress because it can be challenging to prove that someone else was at fault in an accident. The knock-for-knock agreement also helps to speed up the processing of your claim. You won’t have to wait for a settlement that might take months, and you can quickly get your car fixed.*
Knock-For-Knock Agreement Exceptions:
This Only Applies To Mishaps That Take Place Within The Specified Geographic Area
Companies that provide car insurance frequently set a geographic boundary to resolve claims. These are the typical borders of India. Any accident outside these restrictions will be rejected, and third-party car insurance online providers are not obligated to make a settlement payment.*
Only Relates To Claims For Own Damage
This claim will be made under the own damage component of the policy rather than the third-party liability section because each car insurance company will pay out their customers. In other words, even if you weren’t at fault, you would lose the No Claim Bonus benefit if you filed a claim under your own damage cover in such circumstances.*
Claims are subject to terms and conditions set forth under the car insurance policy.
* Standard T&C Apply
# Visit the official website of IRDAI for further details.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
