If you own a car and drive one, you must know that you need to have at least third-party insurance to drive your vehicle on any road in the country. You may also know that you can opt for more coverage with a comprehensive car insurance policy. Most people believe that these two types of policies and they’re premiums are all there is to be known about insurance. However, there are aspects of car insurance that still remain unknown to the general public. Moreover, there are always updates being made to the coverage, operations, and the concept of insurance. One such concept is the Knock-for-Knock Agreement.
Most people currently under insurance coverage may not know about knock-for-knock agreements in car insurance. However, it is not something to worry about. It is a new concept that has been introduced to four wheeler insurance. It is related to how third-party claims can be handled better. Here is all you need to know about it: * Standard T&C Apply
What is a knock-for-knock agreement contract in car insurance?
Insurers are well aware that the third-party claim settlement process can be time consuming and inconvenient. As a result, insurance companies enter into knock-on-knock contracts. A knock-for-knock agreement is a type of contract between motor insurance companies in which they agree to bear the cost of repairing their own customer car instead of blaming the other driver. In this case, the damage is claimed on the policy component rather than on the third-party liability component. *
In theory, a third-party liability policy could help you recover the cost of repairs if your car was damaged due to someone else’s negligence. In this case, the at-fault driver’s insurance company will compensate you as a result of the other driver’s third-party liability component. *
However, as mentioned earlier, you must show that the accident was caused by the negligence of the other driver. And the only way to prove it is the court, specifically the Motor Accident Claims Tribunal. It is a civil court where car accident victims can fight for compensation for the damages they incurred. However, such cases require considerable time and money. As a result, a knock-on agreement between insurance companies can serve as a hassle-free option. *
Knock-for-Knock agreements in India
The General Insurance Council developed the knock-for-knock agreement for Indian drivers. The organization is a common forum that all general insurance companies participate in. The insurance company is not required to sign a knock-for-knock contract. However, by entering into this agreement, they can keep third party claims that can be dragged to court from piling up. Signing this agreement will help expedite claims, as well as reduce the cost and effort required to resolve a third-party claim. *
Benefits of Knock-for-Knock Agreement in India
As shown, compromising for the knock really gives peace of mind. It will save both you and your insurance provider a lot of time and effort, otherwise it will cost a long time in court cases. Since it is difficult to prove someone else’s fault in an accident, the knock-for-knock agreement can save a lot of stress. Additionally, a knock-for-knock agreement can help speed up the settlement of your claim. You can easily repair your car and avoid the hassle of waiting for months to receive a resolution to your damages. Moreover, it should help lower car insurance prices for you as all you would need in this case would be a third-party car insurance policy. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.