Know Everything About a Hassle-Free Claim Settlement

Key Points:

• Know the documents needed to file a car insurance claim
• Understand the claim process for own damage, third party and theft insurance
• There are some main reasons why claims are rejected and it is important to know them
• Do remember to keep some basic points in mind before filing a claim like no claim bonus, cost of repair and voluntary excess

A car insurance claim is an application to the insurer for compensation of the loss caused by a peril covered under the car insurance policy. Once the insurance company receives a claim request, they validate the same and once approved, the approved amount is paid to the insured.

Filing a Claim

For any kind of claim the following details have to be submitted to the insurance company.

How to File a Claim for Own Damage

Filing a claim for any minor or major damage is not difficult if the insured has a comprehensive car insurance policy.

Inform the Insurance Company

The insurer must be informed about the accident as soon it happens. If not done immediately, it should be done at the earliest. The policy usually has the timeline mentioned and insurance companies are very particular about it.

Report to the Police

An FIR has to be filed with the police at the earliest. Depending on the nature of accident the insurance company might not settle the claim.

Ascertain Extent of Damage

The insurance company will schedule an inspection once they receive the claim is registered. A surveyor appointed by the insurer will inspect the car and evaluate the damage. The car should not be towed without speaking to the insurance company.

Claim Settlement

After the survey has been done and the claim intimation has been scrutinized, a survey will be conducted. After this, an approval for the estimate of the cost of repairs will be sent to the garage and the insured, post which the repair work can start. There might be some repair costs which have to be paid by the insured. Once the car is repaired and these costs are paid, the car is good to drive.

Claim for Theft

File against an FIR

As soon the insured realizes that the car has been stolen, an FIR must be filed immediately at the closest police station.

Inform the Insurance Company

After filing the FIR, the insurance company must be informed about the theft. A copy of the FIR, the registration certificate and a copy of the driving license need to be submitted to the insurance company. Along with these documents a theft claim form also needs to be filled. The RTO should also be informed about the theft.

Police Report

After six months of filing the FIR, if the car has not been traced by the police, they issue a Non-Traceable Report. On the receipt of this report, the RC of the car has to be transferred to the insurance company with a letter of subrogation. Once the insurance company receives all documents, they settle the claim.

Claim for Third Party Damage

An FIR

The third party or the insured have to lodge a FIR in order to file a claim. The copy of the FIR should be available with the insured to claim from the insurance company.

Policy Documents

The insured must share a copy of the car insurance policy with the third party for them to be able to make a claim.

Documents

All the required documents along with the duly filled claim form have to be submitted to the insurance company.

Common Reasons for Claim Rejection

No Transfer of Insurance

If the car owner is using a second-hand car and the insurance has not been transferred in his name, the insurance company will reject the claim. It is mandatory for the car insurance to be transferred else all claims are rejected.

Invalid License

If the driving license has expired, is fake or invalid due to any other reason, the insurance company will reject the claim outright. All documents submitted to the insurance company must be genuine.

Influence of Drugs or Alcohol

If the driver is under the influence of alcohol or drugs at the time of the accident, the insurance company will reject the claim. This is an exclusion in the car insurance policy.

Delay in Intimation

If the insurance company has not been informed about the incident in the stipulated time frame, the claim will be rejected.

Car is Old

Sometimes it is possible that the car is very old and the depreciated value is less than the repair cost, they will reject the claim.

Repair Car Without Approval

If the car has been repaired before the surveyor has inspected and seen the damage, the insurance company will not pay the claim.

Unregistered Kit

If the LPG or the CNG kit in the car has not been registered with the RTO, the insurance company can reject the claim.

Other Reasons

There are some other reasons also which can lead to rejection of claim like:

• More people in the car than the seating capacity
• Car parked in a no parking zone
• Private car used for commercial purposes

Points to Check Before Making a Claim

There can be some cases where it is advisable not to make a claim. Some of them are:

No Claim Bonus

If a claim is not made \in the policy year, the insurance company gives a no claim bonus, which is a discount on the premium. If the claim amount is small or if the discount is more than the voluntary deductible, it makes sense not to file a claim and lose the discount.

Cost of Repair

If the repair cost is affordable and is not a big amount, it is always better to pay it. It is always better to take an estimate of repairs before filing a claim as this will help the insured decide in a better way.

Voluntary Excess

The premium is lower on a policy if the excess is higher. The excess is the amount the insured promises to pay from his pocket at the time of the claim. If the cost of repair is lower than the voluntary excess, it does not make sense to file a claim. This can also impact the no claim bonus.