While buying car insurance online is simple, the claim settlement process can be a tedious experience for many. Lack of knowledge about the claim process and the technicalities involved often causes panic and confusion at the time of claim settlement. The sole purpose of buying car insurance is the assurance of availing a claim in the event of damage or theft of your car due to unforeseen circumstances. Whether you want to file a claim for third party damage, own damage or theft, it’s crucial to inform the insurance company as soon as possible. This article will help you unravel the nitty-gritty of car insurance and help you file a valid claim settlement with ease. So let’s start with the basics:
What Is Claim Settlement Ratio?
Claim in car insurance is nothing but an application for compensation under your insurance policy. On the other hand, the claim settlement ratio is the percentage of total claims settled by the insurance provider to the total number of claims received by them in a financial year.
With this ratio, you (the consumer) understand your chances of receiving the compensation for your loss. To understand the reliability of the insurer, they need to have a strong claim settlement ratio.
The equation for the same is -
Claim Settlement Ratio = (Number of claims settled in a year / Total number of claims received that year) x 100
Types of Car Insurance Claims
Car Insurance Cashless Claims
In the case of a cashless car insurance claim, a policyholder does not have to pay for the repairs at the network car garages. The car insurance provider will directly settle the payment with the garage on the policyholder’s behalf. However, to avail a cashless car insurance claim, the nature of damage must be under the scope of the car insurance policy.
Car Insurance Reimbursement Claims
In the case of car insurance claim reimbursement, the policyholder has to bear the cost of damage to the car initially. Later, he/she can approach the car insurance provider for reimbursement of the claim depending upon the terms and conditions of the car insurance policy. The policyholder needs to submit the bills and receipts with the insurer. Post verification of the claim form and documents, the expenses will be reimbursed by the insurance company.
Steps To File a Car Insurance Claim
Follow these three simple steps to file a car insurance claim:
Register your claim with your insurer either online or through the toll-free number. Make a note of details such as policy number, engine chassis number, accident date and time.
If your car is in a working condition drive it to the nearest garage for repair, or have it towed depending on the severity of the damages. To avail the cashless facility, make sure to take your car to the nearest network garage.
In case of cashless policy, submit a copy of all the relevant documents to the garage so that they can receive the amount from the insurer according to the criteria mentioned in your policy documents.
In case of a claim reimbursement, submit the car repair bills along with the car insurance claim form to your insurance provider. On successful verification of the same, your claim will be reimbursed.
Steps To Make Cashless Claim
Register the cashless claim by calling your insurer on their toll-free number or through their website/online claim portal.
Once the claim is registered, you will receive a claim registration number which can be used for future communications/references.
Take your damaged car to any of the authorized network garages of your insurance provider for repairs.
Submit all the required documents to the car insurance surveyor/inspector.
Once the documents are verified, your insurer will settle the claim with the network garage.
Documents Required For Car Insurance Claims
When you file for a car insurance claim, you need to submit supporting documentation so that your insurer can validate them. Here’s a complete list of documents to be submitted if you have a Car Insurance claim:
The Registration Certificate (RC) copy of the vehicle
Original estimates of loss
Duly filled the claim form
Repair invoice and payment receipt
If you have cashless car insurance, you would only require the repair invoice. And in case of claims for theft, you will need to file an FIR with the local police. The keys of the stolen car, No-Trace Certificate and a copy of the FIR need to be submitted to the insurance company in case of theft.
Common Reasons For Claim Rejection
Your insurance provider has the right to reject/accept the received claim application based on the documents provided. Hence, it is crucial for you to provide all the requested documents to avoid getting your claim rejected.
However, some of the common reasons for claim rejections are as follows-
The information provided by you (the policyholder) is incorrect or invalid
The accident happened when you or the driver was under the influence of alcohol or other intoxicants
The car you own is a second-hand car, and the insurance policy is still under the same of its previous owner
The driver of the vehicle was driving without a valid driver’s license
You fail or forgot to inform the insurance provider regarding the mishap within the stated time period
You got your car repair without prior informing the insurance provider
The damage/total loss to the vehicle occurred due to your complete carelessness
The repair expenses of the car are more than the insured declared value (IDV) of the car. In this case, the insurance provider will compensate for the maximum IDV agreed upon, and you have to pay the remaining amount
The car was used for a purpose other than the ones mentioned in the insurance policy
The insurance claim was made against an inactive policy
Tips To File a Car Insurance Claim Successfully
1. Gather the relevant information
If your car was involved in an accident with another vehicle, collect its number plate and the driver’s information if possible. This would help you decide whether to make a claim on your coverage or on the third party’s car insurance coverage. And if no third party is involved in the accident, ensure that you assess the extent of the damage incurred and gather substantial evidence of the damage to the insurance company.
2. Determine the nature of your claim
When your car is involved in an accident with a third party, you have two options; you can either raise a third-party claim on the other party’s insurance coverage or you can raise a claim under your own policy. If the accident was not your fault, you can raise a claim on the other party’s policy so that the No Claim Bonus in your policy would not be affected and you can continue receiving car insurance premium discounts in subsequent years. However, if you are solely responsible for the damage, you have no choice but to raise a claim under your insurance.
3. Inform the insurer
Waste no time in informing your insurer about the accident. Most insurers have a limited window of time when it comes to notifying them about the accident. In case you fail to inform the insurer before the stipulated period, your claim may be rejected.
4. File a police report
If an accident involves a third party, it is mandatory to submit a copy of an FIR with the insurance provider. So make sure to file an FIR with the local police station before filing a claim.
5. Obtain a No-Trace Certificate from the police
If your car is stolen, you would also require a No-Trace Certificate along with the FIR. The No-Trace Certificate is issued by the police authorities stating that the vehicle stolen could not be traced. This document is crucial in claim settlement for car theft.
6. Raise the claim
Once you have the required documents, raise the claim and submit the documents to your car insurance provider. Once the documents are verified by the insurer, your claim will be settled.
If you bear the above points in mind, you will surely be able to file a car insurance claim successfully. Filing a claim is a simple and straightforward process with Car insurance available on Finserv MARKETS. Besides simple claim settlement process, you can enjoy exclusive benefits like cashless claim facility across 4000+ garages, quick claim settlement, round-the-clock assistance and much more. To buy or know more about Car Insurance visit us online today!
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