What is the Future of Car Insurance Claims?
Elon Musk doesn’t pay for advertising his brand, Tesla, but you’ve probably heard of it. The automotive company, based out of Palo Alto, specializes in manufacturing completely driverless cars. When Autopilot is engaged, a car by Tesla can adjust its speed, apply breaks, self-steer, detect nearby obstacles, and park. Tesla and other electric car manufacturers are completely reshaping the way we think about driving and safety. But what does the future of car insurance claims look like?
Considering the high risk of auto-accidents in India, getting your car insured is a must. In Maharashtra, for example, one person dies every 90 mins from a road-accident.
In case of a car accident, to file a claim, you first call your insurance company. Then, get an FIR from the police that records the details of the incident (damage to the car, statement from witnesses). Your insurance company will assign a surveyor once you have sent in the details with your claim. Then, your claim is either accepted or rejected, depending on how the circumstances appear to your provider.
Due to large-scale digitization, the first thing we can expect is that car insurance claims will become completely web-based. Within minutes, you will be able to upload pictures, describe the damage, and provide testimonies of the accident to your auto insurance provider. Claims will also be settled digitally, and if accepted, the money will be transferred to your account within days.
Car Insurance available on Finserv MARKETS offers digital claim-settlement with its Motor On-the-spot (OTS) service. Motor OTS allows you to upload documents, settle claims, and avail funds instantly from the convenience of your home. With Car Insurance on Finserv MARKETS, you can avail cashless services in 4000+ garages. Moreover, there is no third-party involvement in claim verification, and round the clock assistance.
Another exciting possibility is that cars will come with black boxes, cameras, and sensors to record your driving activity. These devices are called telematics. In case of an accident, you will not have to fill out a form with 50 different questions about what happened. Your car will provide all the data to your auto insurance provider instantly using telematics. Tesla models have begun to arrive with pre-installed telematics like cameras, radar, GPS, and ultrasonic sensors.
With the advent of telematics, perhaps, payments will also become automatic. Alex Singla from McKinsey says, “ before you even file a claim, the insurer will have a perspective of …what the damages were. And you’re going to be getting …a direct deposit immediately as the incident occurs.” Both sides of a car insurance claim– filing it, and the insurer’s assessment- will become more efficient.
With the advent of digitization, we can not only track our orders from Amazon but also learn the specifics about where they are in transit. According to Michael Müssig from McKinsey, car insurance claims of the future will be similar. You will always be able to know the status of your claim. The channels for contacting your auto insurance provider will increase.
Müssig goes on to explain how, in the future, car insurance claims will be filed in lesser frequency. In case of any damage like water leakage, your car will let you know. The sensors will detect the damage and tell you the source of the problem. Similarly, anti-theft devices will become more technologically sound. Electronic tracking using pre-installed GPS will tell you where your car is in case it is stolen. After all, the best claim is one that isn’t filed at all.
In conclusion, the development of driverless cars, and telematics is simultaneous to the wave of digitization in India. Soon, cars will come with sensors, cameras, GPS trackers, and ultrasonic detectors. Claim procedures will become more streamlined as damage will be recorded as data that is sent automatically. Fewer claims will be filed as preventive measures will be installed in cars.
To know more on Car Insurance and related topics in depth, you can check out these blogs:
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