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Motor Insurance Claim Process: Understanding the Claim Process Step by Step

Insurance being the non-tangible product, the real taste of the service will be experienced at the time of claim. In motor insurance, the claim process is simple and easy to understand. All the insurance companies have their dedicated customer care line for the customers to call in case of a claim...Read More

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The basic purpose of taking insurance by the customer is to safeguard his financial interest in the case of loss or damage to the vehicle. So the claim can be defined as the payment of the amount required to repair the vehicle in case of loss or damage due to the insured peril.

Motor Insurance Claim Process

Insurance claims are the most important part of insurance as it is this amount that gives your assistance when you land 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, you need to be well aware of the claim process for car insurance in India.

Steps to follow for Claiming Motor Insurance after an Accident:

Making an own damage claim is the same as a third-party car insurance claim.

  • Inform Your Insurance Company: Make a call to your insurance company to inform them about the accident and give detailed information about the damages to your car. Ensure you do not withhold any information from your insurer as it may be counterproductive while settling claims.
  • File an FIR with the Police: Inform the police about the accident immediately and file a First Information Report (FIR), if required. FIR is required in case of theft, road accidents, or fire. You may not require an FIR if it is for minor dents and scratches. And you will require it when a third party is involved in the accident.
  • Take Pictures: Make sure you take enough pictures of the damage and the place of the accident. Ensure the photographs are clear and damages are visible so that the insurance company will be able to examine the extent of physical damages and settle the claim accordingly.
  • Submit Required Documents to the Insurer: To process the claim, the insurance company requires certain documents such as a copy of the insurance policy, FIR, the owner-driver’s Driving Licence, a copy of the Registration Certificate of your car, etc. Ensure you submit these documents and work with your insurer for a hassle-free experience.
  • Get Your Car Repaired: You can take your car to the garage to get it repaired. Or, you can ask your insurance company to get the car fixed. If the insurer approves your claim, you will either be reimbursed or compensated for the loss accordingly.
  • In The Case of Theft: In case your car is stolen, follow the process of informing your insurance company and file an FIR at the local police station. Submit documents such as the RC, your DL, FIR, etc. to the insurance company. If the police are not able to trace the car within a reasonable time frame, they will issue a non-traceable certificate. The insurer will then settle the claim and pay the current market value of your car.

Types of Motor Insurance Claims:

The following are the types of motor insurance claims under which the customer can claim insurance for the loss or damage suffered by him.

1. Third Party Claim:

In insurance terminology, any person other than the Insured and Insurer is referred to as Third Party. Third party liability claims occur when an individual is hit and injured or killed with your vehicle. Third party property damage claims occur when you hit and damage the property of an individual. For this case, the process to claim is as below.

In case of Third Party Claim, you should follow the below steps to complain to the Insurer.

  • Immediately inform the insurance company either on call or in writing.
  • File an F.I.R with the local police and take a copy of the same to submit to the insurance company.
  • The claim would be taken care of by the legal team of the insurance company
  • Third Party claim tribunal would pass the ruling and decide on the claim amount which would be paid by the insurance company.

2. Accidental Damage to Car:

In case of accidental damage to the car due to a road accident or intentional damage by a third party, the following are the steps to be followed to lodge a claim with the insurer.

  • Intimate us at “Claims@policybachat.com” or call us on our toll-free number and report the claim by providing the Claim registration number and other claim related details.
  • Take the damaged vehicle to the nearest “Cashless” garage or any other available garage.
  • Surveyor will be sent by the insurance company to assess the loss or damage to the Car. A survey report will be prepared and shared with the insurance company.
  • If the loss or damage is covered under the motor insurance then the insurance company will approve the claim and intimate you regarding the same.
  • Once the report is approved by the insurer, the vehicle is repaired. The insurance company pays the amount to the garage directly in case of a cashless claim.
  • If you get your car repaired at any other garage other than the tie-up garage, then the claim amount has to be paid by you upfront and apply for reimbursement.
  • The insurance company transfers the amount to your account within the stipulated amount of time.

3. Theft of Car:

When your car is missing or you suspect it has been stolen then the below process has to be followed while reporting the claim.

  • Intimate us at “Claims@policybachat.com” or call us on our toll free number and report the claim by providing the Claim registration number and other claim related details.
  • File an F.I.R with your local police stating the time and date of theft.
  • After filing the F.I.R police try to locate your vehicle. If they fail to recover within the stipulated time, they would issue a non-traceable report to you.
  • You should submit the non-traceable report along with the Car Keys to the insurance company.
  • The insurance company would pay you the Insured Declared Value of the car or Invoice Price (if opted as an add-on).

What are the Documents Required for filing a claim?

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 claim is done for car insurance online or offline, these documents are mandatory to be submitted. Here is a list of documents required for filing a motor insurance claim:

  • Registration Copy (RC Book) of the vehicle
  • Driving License
  • Pollution Certificate (if necessary)
  • Claim form duly filled and signed by the insured
  • F.I.R from Police (if necessary)
  • Keys of Car (for theft & total loss claims)
  • KYC documents of the insured.
  • Cancel Cheque leaf ( for reimbursement and theft cases)
  • Any other documents as required for the claim processing.

Things to Remember While Filing a Car Insurance Claim

There are certain things you need to be mindful of while filing a car insurance claim, some of which are enlisted in the section below:

  • Immediately check yourself and your car after an accident to confirm and determine whether any major bodily injuries or damage is sustained by you or the insured car. Based on the level of damage or injury, you can call for medical assistance or any other support.
  • Do not delay in raising the claim as doing so can result in the denial of your car insurance claim later on.
  • In case of an accident due to a collision with other vehicles, try to note the vehicle number for further verification.
  • Do not enter any misleading or wrong information when filing a claim, as it will straightaway result in the denial of your claim request.
  • In case there is any damage to a third party, do not get involved in any physical or verbal abuse. Inform a police official in such cases immediately.
  • Keep all the documents handy so that there is no problem when you raise a car insurance claim to your insurer.

What should you do when your Motor Insurance Claim is Reject?

Every car insurance claim that is raised by the policyholder may not be settled. Some claims get rejected. An insurance company reserves the right to accept or reject a claim. So, it is advisable to take the necessary precautions to avoid getting your claim rejected.

  • Damages to your car due to carelessness
  • Unreasonable delay in raising the claim request
  • A false claim made with wrong information
  • Incorrect or misrepresentation of information while raising a claim
  • Claims raised against damage that is not covered by the policy
  • Getting your car repaired before or without informing the insurance company
  • In case the claim is raised after the car insurance policy has expired
  • Not disclosing information such as modifications to the insured car
  • Driving the insured car without a valid driving license
  • The insurance of your second-hand car is still under the previous car owner
  • The owner/driver uses the car for purposes other than those mentioned in the policy
  • Driving the insured car under the influence of alcohol or other intoxicating substances at the time of the accident.

Frequently Asked Questions:

What are the different types of car insurance claims?

Your car insurance policy claims are mainly of two types: cashless claims and reimbursement claims. The cashless claim is one where the insurance provider settles the bill for repairing your vehicle with the network workshop where you get your car fixed. The reimbursement claim, on the other hand, is the form of claim wherein you will be responsible for settling the bill in the first place followed by which you will have to submit the relevant eligible bills of repair to the insurance provider. The insurer will reimburse the repair charges based on their terms and conditions.

Is the surveyor’s visit compulsory?

Yes, in each instance of claim the surveyor visits the garage to inspect the damages that occurred. It is only after the submission of the surveyor’s report that the claim is approved and the repair works begin.

How does NCB affect me while filing a claim on my policy?

When you make no claims, you get a No Claim Bonus (NCB) on your next year’s damage premium. The NCB amount starts from 20% of the Own Damage premium if you make no claims. It accumulates up to a maximum of 50%. So if you make a small claim, say for a minor dent on your bumper, you lose out on the NCB.

Another reason for not making a small claim is the deductible amount that you have to pay out of pocket. Suppose your policy comes with a deductible of 1000 and you make a claim of 3000, the insurer pays only 2000. Moreover, if your accumulated NCB was 5000, you end up losing that too. On the other hand, in case of a larger claim, you cover expensive repair costs and avoid out-of-pocket expenses through your insurance plan.

Is FIR/police report mandatory for a motor insurance claim?

An FIR/police report is mandatory in case of a major accident, injury to 3rd party or occupants, malicious acts, theft, or third party damage (if you damage someone else’s property with your vehicle).

Will my car insurance cover engine damage caused by floods?

The standard car insurance policy does not cover engine damage. However, if you opt for a specific add-on cover for this repair or other similar damages, you can receive reimbursement for this claim

Conclusion:

The process of making a motor insurance claim can be very long and complicated. It can take weeks or even months for the claim to be processed. The process starts with reporting the accident to your insurer, getting estimates from repair shops, filing a police report, and then waiting for your insurer to evaluate the cost of damages.

In conclusion, while there is a lot of paperwork involved in making a motor insurance claim, it is necessary to make sure that you are fully aware of what you are entitled to as well as what your insurer will cover.

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