Online Insurance claims are the most important part of insurance as it is this amount that gives you assistance when you land up in an emergency. Ignorance about the claim process can leave you brooding over the process when you need support on an urgent basis. Hence, as a policyholder, it is very important for you to be well aware of the claim process for car insurance in India.
There are a handful of aspects that needs to be remembered to make the claim process for car insurance in India a smooth one. The foremost and the most important part of making an online insurance claim are the documents that you require to submit. Whether the claiming is done for car insurance online or offline, these documents are mandatory to be submitted.
- Offline/Online Insurance Claim form duly signed by the insured.
- Car insurance policy, both original and copy.
- Duplicate copy of vehicle registration certificate and photocopy of Driving License of the driver.
- Copy of estimated cost of repair prepared by the garage.
- Copy of FIR, in case the car sustained any major damages and/or criminal offense, including damage and injuries to a third party.
- Copy of Fire crew report in case loss if inflicted by fire.
Reasons for Car Insurance Claims in India for the following Reasons:
- Third-party claim: Claim for physical injury or property damage caused to or by someone else.
In the event of a collision or an accident, if you are at fault for causing damage to another person or his vehicle, it is important to make a police report immediately as well as notify the company which has provided the car insurance policy. On the contrary, if you are the sufferer due to someone else’s fault, you must get the insurance details of that car and inform them about your loss.
- Personal Damage/Theft claim: Claiming for a Comprehensive Car Insurance Policy for personal injuries or damage caused to your car or when your car is stolen.
Follow the given steps to make the process of claiming your car insurance India a smooth one:
Inform the police and the insurance company at the earliest so that they can send their assessing them to check the amount of damage caused.
Never try to shift your vehicle from the accident spot without the permission of the police or the insurer.
Some of the best car insurance policies provide cashless facilities; they pay for the repair charges to the workshop directly.
For an online insurance theft claim, you need to surrender your car key to the insurance company.
Online insurance aggregators like PolicyBachat have not only made the process of car insurance purchase and car insurance renewal simple and hassle-free but have also rendered great help in the claiming process. A simple form, called the car insurance calculator, helps insurance-seekers to calculate premiums and compare the rates of different policies under one roof and buy the best plan.
Does applying for an Insurance Claim Decrease the value of the Car?
Insurance can be better defined as a service rather than a product. Insurance being intangible comes into play only at the time of claim settlement. There might be many doubts among people regarding the resale value of the car, such as people doubt if applying for an insurance claim decrease the value of the car.
Mr. Rahul has purchased a Hyundai Verna Car in the year 2016 at a price of Rs.11 Lakhs and has taken insurance from XYZ Company for the year 2016-17. He was taking good care of his car like regular servicing, avoiding rash riding, and maintaining the mileage. These are the factors that decide the wear and tear of the vehicle and the running condition of the vehicle. In December 2019, he met with an accident while traveling on a highway in the monsoon season and the claim amount was approximately around Rs.2Lacs. At the time of the accident, he was having valid insurance so he thought of taking the vehicle to a garage and informed the same to his friend Mr. Pallu. But Mr. Pallu advised Rahul against his decision of taking the vehicle to a garage and claiming it under insurance stating the below reasons,
- The resale value of the Car will decrease if a claim is taken from an insurance company
- People will not prefer to purchase the vehicles met with an accident
- NCB will not be available at the time of renewal.
Is Mr. Pallu correct in any of the above-stated opinions? If yes, can u guess the reason for the same? If not, try to continue reading the article for further understanding.
Insured Declared Value / Vehicle Value:
Insured declared value or the vehicle value as it is commonly known as is the value of the vehicle fixed and agreed by the insured (customer) at the time of obtaining insurance. Any loss or damage to the vehicle can be claimed up to the extent of the IDV and anything beyond that has to be borne by the insured.
There is a misconception among people that if you claim for damages this year next year the vehicle value will be reduced and the resale value of the vehicle will also reduce due to the damage in the vehicle.
One important thing to note here is that the Insured declared value decreases by 10% every year and has nothing to do with the resale value of the car. So even if you are not claiming damages from the insurance company, your IDV will be reduced at the time of renewal and the premium will be calculated accordingly.
The resale value of the vehicle depends purely on the below factors and has nothing to do with the insured declared value and claim for damages;
- Vehicle Condition: The condition of the vehicle at the time of sale plays an important role in deciding the resale value of the vehicle. If your car is in good condition like it's running smooth, the engine is working fine and the overall car doesn’t require much investment then the resale value will increase. The more investment to be made for repairs and modifications, the less would be the resale value of your car.
- Brand of your Car: Perception also plays an important role in deciding the resale value of your car. Some brands of cars have high resale value irrespective of their condition, comfort, etc., this is due to the perception of people that a particular brand of car has more resale value compared to its peers. For example, Hyundai cars are perceived to have more resale value than Renault cars.
- Past Driver History: This is also one of the important factors considered while purchasing a used car. The driving history of the past driver is taken into consideration while purchasing the car such as the number of kilometers driven, occupation of the past owner of the vehicle, for which purpose the vehicle is used, etc., For example, people consider cars of doctors to be well maintained due to the fact that most of them use it to commute to and from office.
It can be concluded that:-
The resale value of the car doesn’t change if there is a claim on the car, in fact, one important point to be noted here is that new parts are replaced in place of old parts after a claim and the car is somewhat new after a claim and this should help increase the resale value of the car. The expired car insurance after one year from the date of commencement of the policy period if not renewed before the last date.
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