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What is Car Insurance Claim Settlement?

Car insurance claim settlement refers to the process by which the insured party files an insurance claim with the insurer, seeking compensation for damages to their car owing to an accident. When you purchase a car, you must necessarily opt for car insurance and pay premiums routinely. Therefore, it is your right to seek compensation in the event of an accident. You can undertake the car insurance claim process online, and your bills will be reimbursed.

What is the Car Insurance Claim Settlement Ratio?

The claims percentage settled by an insurer with respect to the total number of claims it receives in a financial year is known as the car insurance claim settlement ratio.

 

Knowing just the number of claims settled by an insurer in a particular financial year may not be useful. Hence, a ratio which compares this with the overall number of claims received by the insurer helps in providing a clearer picture of their performance.

 

The car insurance claim settlement ratio is always measured in percentage as a metric. Let’s take an example. Suppose an insurance company has a claim settlement ratio of 97%. It implies that they have managed to pay 97 out of 100 claims raised by their policyholders. The remaining 3% represents the rejected or pending claims.

 

There may be several reasons for an insurance company to reject the claim requests. These may be such as not making honest disclosures or providing misinformation at the time of the filing of the claim.

Types of Car Insurance Claim Process

When it comes to the car insurance claim process, there are two primary claims that you can file:

 

Cashless Claims

If you already have car insurance, you can opt for a cashless claim car insurance. In the event of such a claim, all you are required to do is take your vehicle to the nearest registered garage in your vicinity. The insurance company will then directly settle all your bills pertaining to the repair of your car.

 

Reimbursement Claims

If you wish to take your vehicle to a garage of your choosing, or you do not possess the cashless claim facility, you can opt for a reimbursement claim. Once you get your vehicle repaired, you must submit all pertinent bills to your insurer, who will then proceed to reimburse you for the entire amount.

 

What is the Best Car Insurance Claim Settlement Ratio?

While a car insurance claim settlement ratio of more than 80% is considered to be good, a claim settlement ratio of more than 90% is ideal. Most car owners end up choosing an insurance policy by an insurer who shows a claim settlement ratio of 90% or more. 

 

An insurance company’s CSR  is generally mentioned on their official website. You can also check the IDRA’s annual report for the same. The insurer’s claim filing process which is easy, quick, and simple will make the entire process seamless.

 

How to File a Cashless Car Insurance Claim

When opting for a cashless claim, here are the steps to claim car insurance:



Step 1: Start by informing your insurer about the claim. You can do so online or by contacting their customer care team.

 

Step 2: A surveyor from the insurance company will assess the damage and make a report.

 

Step 3: Once the insurance company assesses the report, they will then sanction repairs in the network garage.

 

Step 4: You will have to submit a claim form, and the insurance company will then settle your bill with the network garage.

How to File a Reimbursement Car Insurance Claim

While opting for a reimbursement claim, here are the steps to claim car insurance:



Step 1: Notify your insurance company about the claim. To do so, you can visit their website or call their customer care team.

 

Step 2: In the case of an accident, make sure you file an FIR.

 

Step 3: Your vehicle will be towed to the nearest garage, and a professional will assess the damage.

 

Step 4: Once your car has been repaired, make sure to retain all bills.

 

Step 5: When submitting your claim form, you must also submit all pertinent bills. You will then be reimbursed for your expenses after you pay for the associated deductibles.

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Particulars

HDFC ERGO Car Insurance

SBI General Car Insurance

Bajaj Allianz Car Insurance

Acko Car Insurance

Features

Easy and quick purchase process, cashless claims, overnight repair facility, emergency assistance

Multiple add-on covers, cashless claims, minimal documentation, 24*7 customer care

24x7 roadside assistance, NCB transfer, cashless claim, quick renewal, swift settlement

Affordable premiums, 24x7 emergency assistance, zero paperwork, hassle-free claims

CSR

100.00%

92.00%

98.54%

95. 64%

Premium

₹2094/-

₹2094/-

₹2094/-

₹2094/-

Documents Needed to File a Car Insurance Claim

If you are claiming insurance for car damage, you must furnish the following documents:

 

  • Details of your vehicle

  • Vehicle insurance policy

  • All insurance-related information

  • Details of the accident

  • An FIR report, if necessary

  • Original bills and receipts

Reasons for Car Insurance Claim Rejections

Your car insurance claim can potentially be rejected for the following reasons:

 

  • If you are found guilty of driving without a valid driving licence

 

  • If your vehicle is damaged due to reasons outside the policy’s jurisdictions

 

  • If you are found guilty of driving under the influence of alcohol or other substances

 

  • If you furnish incorrect information while filing the claim

 

  • If you repair your vehicle without first informing the insurer

Tips to File a Car Insurance Claim Successfully

When claiming insurance for car damage, the following tips can come in handy:

 

  • In the case of minor damages, pay for the expenses yourself, and avoid raising a claim to keep your NCB intact.

 

  • Ensure that you retain all original documents.

 

  • Make sure to regularly follow up with the insurer.

Car Insurance Claim During Accidents

Accidents can occur due to various reasons, either due to your fault, or a third party’s fault. In the event of an accident, here is how to file a car insurance claim:

 

  • Ensure you inform the insurer of the date – mentioning the exact date, time, and location of the accident.

 

  • Ensure that you file an FIR with the police.

 

  • The insurance company will send a surveyor to assess the damage to your vehicle, who will make a report of the same.

 

  • If you have filed a cashless claim, your car will be repaired by the nearest network garage, and the insurance company will foot the bill.

 

  • If you have filed a reimbursement claim, once you have repaired your car, the insurance company will reimburse your bills.

Car Insurance Third Party Claim

If you get injured, or your car gets damaged due to a third party, you must immediately notify your insurer and also file an FIR report. To file a car insurance claim in such a situation, you must necessarily furnish the following documents:

 

  • Duly signed claim form

 

  • Copy of your car’s registration

 

  • Copy of your policy

 

  • Copy of the FIR report

 

  • Copy of your driving licence

Car Insurance Claim During Theft

If in case your vehicle has been stolen, you must immediately file an FIR with the police. Next, you must proceed by informing your insurer of the same. The police will try locating your car, and if they fail to do so, they will create a ‘No Trace Report’. In this case, the insurer will also request you to submit your car keys, a copy of the FIR report, and the details of your vehicle’s registration. Following this, you will be duly compensated based on your car’s IDV (Insured Declared Value).

How to Negotiate Car Insurance Claim Settlement?

Insurers provide a claim amount depending on your policy terms and conditions. However, if you believe that your claim must be more, you can negotiate with your insurance provider. You must ensure that you are thoroughly aware of your terms and conditions in order to be able to negotiate properly. In order to ensure that the negotiation takes place smoothly, you can inform your insurer about the damages done at the earliest.

This is an important step that you must strive not to overlook. After this is done, you must do the following in order to negotiate seamlessly:

  • Create the records of all the vehicle or medical bills and the copies of the FIR and other necessary documents for verification.
  • Assess the damage to your car and go through your policy terms to understand the claim you can receive. Keep the amount flexible to accommodate the changes that may occur at the time of negotiation.
  • Write a demand letter to the insurer with details to justify your claim amount.

  • Make sure you highlight the points of your claim that are in your favour. 

  • Accept the offer only if you are satisfied. You do not have to accept the first offer by the claims adjuster.

  • Be persistent and patient while following up on your request.

  • Get the accepted settlement in writing. 

  • Seek the help of an expert or legal advice to get the best and fairest deal. 

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Role of the Surveyor in the Claim Process

A surveyor plays a crucial role in insurance claims by assessing damage to insured vehicles and ensuring a fair and accurate claims process. They inspect the damage, document its cause and extent, estimate repair or replacement costs, and offer guidance to the policyholder for loss mitigation.

 

Surveyors can also aid policyholders in completing claim forms and obtaining necessary documents, especially if they are unfamiliar with the process or face document-related challenges. Moreover, surveyors act as intermediaries between policyholders and insurance companies to resolve claim disputes by providing unbiased damage and cost assessments.

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FAQs on Car Insurance Claim

Can I claim car insurance even for scratches?

Yes, but you can do so only if you possess comprehensive coverage or standalone own damage coverage.

What documents do I need for a car insurance claim?

For a car insurance claim, you must furnish the FIR report, duly signed insurance claim form, policy documents, and original bills.

How quickly can I expect my claim to be processed?

This varies from insurer to insurer, from a few days to a few weeks or months.

 

Can my car insurance claim be rejected?

Yes, it can be rejected. This can be for reasons such as if you are found guilty of driving without a valid licence, driving under the influence of substances, if you furnish wrong information while filing the claim, or if you repair your vehicle without informing your insurer first.

What are the two main forms of car insurance claims?

The two forms of car insurance claims are cashless claims, and reimbursement claims. In the former, the insurance company directly settles your bills, and you do not incur any expenses. In reimbursement claims, once you make payments for the repair, your bills will be reimbursed by the insurer.

Are the insurance companies bound to settle every car insurance claim?

No, the insurers are not bound to settle every car insurance claim. The insurance policies typically have terms and conditions that specify the circumstances under which a claim will be paid. If the claim falls outside of these terms and conditions, the insurer may be within their rights to deny the claim.

 

Can I make a claim just before getting my car insurance policy renewed?

You must submit a claim only when it is needed. Raising the claims for minor damages could prove to be counterproductive, thereby affecting your no-claim bonus. You must submit claims for substantial damages, whether you make a claim just before getting your insurance policy renewed or anytime during the policy tenure.

Who should I submit the documents to during my car insurance settlement process?

You can submit all the necessary or requested documents to the surveyor during the time of inspection.

Can I claim car insurance if I hit a pole?

Yes, you can claim car insurance if you hit your car against a pole.

 

Can I claim insurance on bumper damage?

You can claim car insurance on bumper damage only if you have a comprehensive insurance policy.

 

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