Third-Party Motor Insurance Claim Process in Pakistan – Step-by-Step Guide

Motor insurance is not just a legal requirement in Pakistan — it’s a financial safety net that protects you and others on the road. Among the different types of motor insurance available, third-party motor insurance is the most basic yet mandatory kind. It covers liability for damage or injury you may cause to another person, vehicle, or property, but not your own vehicle.

In this detailed step-by-step guide, we’ll walk you through the third-party motor insurance claim process in Pakistan, the documents you need, common reasons claims get rejected, how liability is determined, coverage limitations, and specific considerations for cars, bikes, and rickshaws. We’ll also answer frequently asked questions and point you toward professional motor insurance services at the end.

What is Third-Party Motor Insurance?

Third-party motor insurance in Pakistan is a policy that protects the insured driver against legal liability arising from bodily injury, death, or property damage to a third party due to the insured vehicle.

In simple terms:

• “Third party” = anyone other than the vehicle owner or insured driver.

• The insurance company pays compensation to the injured party if you are at fault in an accident.

• It does NOT pay for damage to your own vehicle.

This coverage is mandatory under Section 142 of the Motor Vehicles Ordinance, 1965. Driving without it can result in fines, license suspension, or legal penalties.

Step-by-Step Third-Party Motor Insurance Claim Procedure in Pakistan

The claim process can be smooth if you follow it carefully. Below are the steps explained in detail:

1. Ensure Safety and Secure the Scene

Immediately after an accident:

• Move to a safe location if possible.

• Turn on hazard lights.

• Check for injuries and call for medical assistance if required.

• Call the police, especially if there are injuries, fatalities, or major damage.

Safety first — exchange information only if all parties are secure.

2. Notify the Police and File an F.I.R.

In Pakistan, it is mandatory to register an F.I.R. (First Information Report) for third-party liability claims.

• Dial 15, local police station, or emergency services.

• Provide details of the accident location, vehicles involved, and injuries if any.

• Ensure the officer logs the incident properly and issues a copy of the F.I.R.

Note: Without a police report, most insurers will not process the claim.

3. Inform Your Insurance Company Immediately

Contact your insurer as soon as possible. Most insurers require notification within 24–48 hours of the accident.

Provide:

• Your policy number

• Time and location of the accident

• Brief description of what happened

• Contact details of third parties involved

Some insurers allow claims via phone, WhatsApp, or mobile app.

4. Document the Accident

Before vehicles are moved, try to:

• Take clear photos of both vehicles

• Capture license plates, damage, road conditions

• Photograph any injuries and scene markers

This visual evidence supports your claim and proves third-party involvement.

5. Collect Witness Statements (If Any)

If there are onlookers or witnesses:

• Collect their names and contact information

• Ask for brief written statements about what they saw

• This helps insurers establish liability more clearly

6. Submit Required Documents to the Insurer

This usually involves:

• Claim form duly filled

• Copy of F.I.R.

• Driving license of the insured driver

• Vehicle registration documents (RC book)

• Third-party documents (CNIC/ID card)

• Photos of the accident and damage

• Medical certificates or bills (if injuries occurred)

Your insurance company will guide you on additional documentation.

7. Insurer Appoints a Surveyor/Investigator

Once documents are submitted:

• The insurer may assign a surveyor.

• The surveyor inspects the vehicles involved.

• They evaluate damage and determine how much compensation the third party is eligible to receive.

8. Liability Assessment and Approval

The insurer reviews:

• Police report

• Surveyor’s report

• Witness accounts

• Photos and other evidence

If liability is established in favor of the third party, your insurer proceeds with settlement.

9. Compensation Payment to Third Party

Under third-party motor insurance:

• The insurer pays compensation to the other party who suffered loss.

• You, the policyholder, are not reimbursed for your own vehicle’s repairs under a third-party policy.

Payment may be made directly to the claimant or through the courts if the case is litigated.

Documents Required for Third-Party Motor Insurance Claims in Pakistan

To ensure a smooth claim, gather the following:

Mandatory Documents

1. Original insurance policy document

2. Filled claim form

3. F.I.R. copy from the police

4. Valid driving license

5. Vehicle registration book (RC)

6. CNIC/ID card of insured driver

7. Photos of the accident scene

8. Surveyor’s report (if issued)

Additional Documents (Depending on Case)

• Medical reports/bills (if injuries)

• Witness statements

• Repair estimates (if required)

Missing documents often delay claim processing — verify checklists with your insurer ahead of time.

How Accident Liability is Determined

Liability is a key factor in third-party claims. Insurance companies assess it using:

1. Police F.I.R. Findings

The official account helps clarify fault and sequence of events.

2. Surveyor’s Report

Surveyors inspect vehicles and may interview parties.

3. Evidence and Photos

Clear visual proof significantly influences liability decisions.

4. Witness Statements

Independent accounts can support or contradict parties’ positions.

5. Traffic Rules and Regulations

Pakistan’s traffic laws are applied to determine fault based on duty of care, right of way, signals, and speed.

Coverage Limitations of Third-Party Motor Insurance

Knowing what third-party insurance doesn’t cover is crucial:

• Covers legal liability to others
• Does NOT cover your own vehicle damage
• Does NOT cover theft
•  Does NOT cover fire damage to your vehicle
• Does NOT cover personal injury to the insured driver/owner

If you want your own vehicle protected, consider comprehensive motor insurance or add-ons.

Third-Party Claims for Cars, Bikes & Rickshaws

1. Cars

Cars are usually involved in high-impact collisions.

Important points:

• Higher claim amounts may be involved if costly vehicles or injuries are present.

• Detailed documentation is essential.

• Surveyors thoroughly inspect multiple vehicle points.

2. Bikes/Motorcycles

Due to lighter structures:

• Bike riders often get injured in crashes.

• Third-party liability claims may include medical compensation to victims.

• Police documentation is especially important due to frequent disputes.

3. Rickshaws/Auto-Rickshaws

Rickshaws have different body structures:

• Many are used commercially, carrying passengers.

• Claims may involve multiple injured parties.

• Liability can become complex due to third-party passengers.

For all three types, the claim steps remain the same, but the severity and payouts may differ based on injuries and property damage.

Common Reasons for Claim Rejection in Pakistan

Even genuine claims can be denied. Here are the most frequent rejection reasons:

Late Notification to Insurer

Not informing the insurer within the required timeframe.

No Police Report (F.I.R.)

This alone causes most claim rejections.

Invalid/Expired Documents

Expired license or policy at the time of accident.

Misrepresentation or False Statements

Any untrue information on the claim can void it.

Driving Without Valid License

If the driver was unlicensed or disqualified.

Driving Under Influence of Alcohol/Drugs

Non-compliance with law invalidates coverage.

Unauthorized Repairs Before Survey

Fixing the vehicle before a surveyor inspects it.

No Witness or Conflicting Evidence

When evidence does not support the claim.

Being aware of these pitfalls helps you avoid costly errors.

Frequently Asked Questions (FAQs)

Q1: Is third-party motor insurance mandatory in Pakistan?

Yes. It’s compulsory under the Motor Vehicles Ordinance. Driving without it invites penalties and legal trouble.

Q2: Does it cover my own vehicle repairs?

No. Third-party insurance only compensates other parties who suffer loss due to your fault.

Q3: What happens if the other driver doesn’t have insurance?

You still need to report to the police and proceed with legal compensation for the third party. The other driver’s insurance status doesn’t impact your reporting obligations.

Q4: How long do insurers take to settle third-party claims?

It varies, but most legitimate claims close within 30–60 days if documentation is complete.

Q5: Can I claim if I was partly at fault?

Yes, but the insurer may reduce liability based on the degree of fault.

Tips for a Smooth Third-Party Claim Process

✔ Always report to police immediately
✔ Never delay notifying your insurer
✔ Keep detailed photos and evidence
✔ Carry digital and physical copies of documents
✔ Cooperate with surveyors and law enforcement
✔ Avoid making statements that admit fault at the scene

Protect Yourself With the Right Motor Insurance

Third-party motor insurance is vital — but it has limitations. If you want:

• Own vehicle damage coverage

• Fire and theft protection

• Personal accidental cover

• Comprehensive peace of mind

Then you should explore comprehensive motor insurance with additional riders.

Ready to Simplify Your Claim? We Can Help.

If you’re looking for reliable motor insurance services in Pakistan — whether third-party or comprehensive — our experts are here to guide you step-by-step.

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Protect your vehicle and your peace of mind today — visit our United Insurance Website now!