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What is Car Insurance Claim Settlement?

If you own a vehicle, you must be aware that car insurance is mandatory to drive legally in India. Apart from the legal aspect of having car insurance, it also financially secures your vehicle in case of unfortunate mishaps and perils. As life is unpredictable, no matter how safely you drive, there is always the possibility of unforeseen incidents taking place.

However, when it comes to insurance, it is common for policyholders to find the claim process to be tedious and time-consuming. But with the advent of technology, filing car insurance claims has become easier than ever. You can simply raise a claim request on your comprehensive car insurance policy in the event of damage or theft.

Before we guide you with the car insurance claim procedure, let’s understand the types of insurance claims.

Types of Car Insurance Claims

Here are the two types of car insurance claims that you can raise with your insurance provider:

  • Cashless Car Insurance Claim

You can opt for a cashless car insurance claim by taking your vehicle to a network garage associated with the insurer. Thanks to the cashless facility, you won’t have to pay a dime for the repair and servicing of your car. The final bill will be directly settled by the insurance provider. However, you may have to pay for the compulsory and voluntary deductible chosen at the time of policy purchase. Every insurance company has a wide network of such authorised garages that offer a cashless facility to the policyholder.

  • Reimbursement Car Insurance Claim

If you prefer taking your car to a certain garage in your region that isn’t associated with your insurer, then you can file a reimbursement claim. Unlike a cashless facility, you will have to settle the final bill from your own pocket and apply for a reimbursement later. To ensure a smooth claim settlement process, it is recommended to maintain the original invoices and receipts for submission. The insurer will settle the claim amount after subtracting the applicable deductibles.

Steps to File Cashless Car Insurance Claims at Finserv MARKETS

Here’s how you can easily raise a cashless car insurance claim at Finserv MARKETS with a few steps:

  • Intimation

Inform your insurance provider about the claim as soon as possible by calling their toll-free number or by visiting their website. Your claim will be registered and you shall receive a reference number for future communication.

  • Assessment & Evaluation

The insurance company will then assign a surveyor to evaluate the damage incurred by your vehicle. A report will be submitted by the surveyor once the assessment of the damage is complete.

  • Repair and Servicing

Upon receiving approval from the insurer, your car will be towed to the nearest network garage to repair the damage. Later, you can pick up your serviced four-wheeler from the authorised garage.

  • Cashless Claim Settlement

Submit the necessary documents and the claim settlement form that your insurance provider needs for processing the cashless claim. As you have opted for a cashless facility, the bill will be directly settled with the garage by the insurer, after you clear the required deductibles.

Steps to File Reimbursement Car Insurance Claims at Finserv MARKETS

You can follow the step-by-step guide given below to learn the reimbursement claim process at Finserv MARKETS:

  • Intimation

Inform your insurance provider immediately and tell them about the claim. You can do this by calling their toll-free number or by visiting their website. The insurer will register your claim and give you a reference number for future communication. In case of a major accident, you can file an FIR at the police station.

  • Assessment & Evaluation

Your car will be towed to a garage of your preference to assess the loss incurred in the accident. So, it is recommended to get the damage inspected by a professional at the garage.

  • Repair and Servicing

After the inspection is over, the garage will begin repairing your vehicle. Later, you can pick up your serviced car from the garage after settling the final repair bills. However, it is important to maintain the original receipts and inspection report to initiate a reimbursement insurance claim.

  • Reimbursement Claim Settlement

Submit the relevant documents and invoices to the insurance provider. After reviewing the initiated car insurance claim, the insurer will compensate you for the expenses incurred. The claim amount will be reimbursed after you pay for the applicable deductibles.

Documents Needed to File Car Insurance Claim

Keep the following documents ready while raising a car insurance claim:

  • Car insurance policy document

  • Car details

  • Insurance details

  • Details of the incident

  • FIR copy in case of theft

  • Original bills and receipts of the repair in case of reimbursement claim

Role of Insurance Surveyor

Insurance surveyors have numerous responsibilities and duties to fulfil when a car insurance claim is raised. These include:

  • Inspect and Assess

In the event of a loss caused to a vehicle, the surveyor shall inspect and verify the damage as well as report the extent of the loss incurred. Further, the surveyor will submit a report to the insurance company after investigating the damage.

  • Offer Detailed Assessment

The surveyor must offer a detailed assessment of the damage after performing an on-the-spot inspection. On completing this, the surveyor can then comment on the case and decide which category the claim falls under.

  • Maintain Code of Conduct

The insurance surveyors must perform their duties without any bias and maintain complete neutrality, ensuring the interests of both the insurer and the insured.

  • Disclose Conflict of Interest

If there is any conflict of interest such as the surveyor being related to the insured or the accident, it must be disclosed beforehand. As a personal relationship of the surveyor with any policyholder can prevent them from maintaining neutrality, the surveyor must not conduct the insurance survey.

  • Advice on Preventing Mishaps

It is also the insurance surveyor’s duty to advise the policyholder about safety measures that can be taken in the future to prevent or minimise loss.

  • Attend to Discrepancy

If the surveyor identifies any discrepancies in the wordings of the insurance policy, they must point it out and attend to any queries raised by both the insurer and the insured.

  • Suggest Consideration of Depreciation

If the vehicle has undergone depreciation, the surveyor must suggest considering it during car insurance claim settlement. Further, comments on disposing or salvaging the vehicle in case of total damage can be made by the surveyor.

Car Insurance Claim Settlement Process

Cashless Claim Settlement Process

Reimbursement Claim Settlement Process

The repair work on the damaged car will begin as soon as the insurance surveyor receives the necessary documents

Re-survey can be conducted after repair work is completed

The damaged vehicle must be inspected by the appointed surveyor within 48 hours before getting it repaired from a preferred garage

The insurance company shall provide a delivery order after getting a repair invoice from the network garage

The original repair invoice, bills and receipt of payment must be submitted to the insurer

The vehicle can be released after it has been serviced and repaired

After the insurer verifies and processes the car insurance claim, the claim amount shall be reimbursed

Common Reasons for Car Insurance Claim Rejections

Due to missing original documents or lack of a proper claim process, insurance providers may end up rejecting or delaying certain car insurance claims. As the insurer has the right to accept or reject a claim, it becomes vital to pay attention while raising a claim request via the online or offline mode.

To avoid bearing the financial burden yourself, it is advised to maintain the original bills and receipts. Go through some common reasons that lead to car insurance claim rejection to refrain from making similar mistakes:

  • If the policyholder was driving the car without a valid driver’s licence

  • In the event of an unfortunate incident occurring outside the geographical region stated in your car insurance plan

  • Accidents resulting from driving the car under the influence of alcohol or intoxicants

  • If the insured provides false or incorrect information regarding the incident

  • In case the mishap occurs while using the insured vehicle for carrying out illegal activities

  • If the insured gets the damaged car repaired without intimating the insurance provider regarding the accident

  • Damage incurred while driving the vehicle without a valid or an expired insurance policy

  • If the unforeseen mishap takes place due to the carelessness and ignorance of the policyholder

Moreover, if the repair cost comes out to be more than the depreciated value of your car, then you will have to bear a significant part of the vehicle's depreciated value

How to File Car Insurance Claim During Accidents?

  1. Inform your insurance provider regarding the accident immediately. Insurance claims must be reported within a stipulated period to avoid claim rejection; hence, it is recommended that you do it at the earliest.

  2. File an FIR at the nearest police station in case of a major accident.

  3. After your insurance provider has been intimated about the accident, a surveyor will be assigned to inspect the damage. Once the inspection is complete, your insurer will send approval to the garage to begin the repair work.

  4. In case you take your vehicle to a network garage, the bill will be directly settled by the insurer after you pay for the applicable deductibles.

  5. However, if you get your car repaired at a preferred garage, you can opt for a reimbursement claim. As per the terms and conditions of the insurance policy, you will receive compensation upon submitting the necessary documents.

Documents Required for Accidental Claim

Keep the following documents ready while filing an accidental car insurance claim:

  • Duly signed and filled claim settlement form

  • Copy of Registration Certificate of your car

  • Copy of car insurance policy

  • Copy of driver's license

  • Copy of FIR in case of a major accident

  • Original tax receipt

  • Original invoice of repair for cashless claim

  • Original invoice of repair and payment slip in case of reimbursement claim

Hit and Run Accidental Claims

You can raise an insurance claim in case you sustain any injuries or your vehicle incurs damage in a hit and run accident. So, let us learn some steps that you can take towards accumulating evidence to support your car insurance claim:

  • Record the Details

Immediately after the accident, note down the details such as the date, time, and location of the mishap. Take pictures of the loss incurred by your vehicle as proof to be submitted later. Record the third-party’s vehicle details like the vehicle plate number, model, colour, and anything else that you can recall.

In case you cannot recollect any details of the hit and run accident, check if any CCTVs are installed around the locality for evidence.

  • Speak With the Witnesses

You can engage with the witnesses who saw the accident take place and ask if they are willing to testify for you. Note down the contact details and names of the witnesses who agree to testify. Collecting witness testimony shall greatly help you with the car insurance settlement or tracking down the suspect.

  • File an FIR

Inform the nearest police station and file an FIR immediately. Submit a copy of the FIR with your insurance company as a supporting document for your insurance claim.

How to File a Hit and Run Accident Claim?

  1. The victim of the accident or their legal representative needs to submit an application to the Claim Enquiry Officer in the respective taluka. Here, the victim is the person who has sustained injuries or incurred property damage or loss.

  2. The Claim Enquiry Officer will submit a report and other applicable documents like the injury certificate, postmortem certificate, etc., to the Claims Settlement Commissioner.

  3. The claim request will be processed and the compensation shall be sanctioned in about 15 days since the Claim Enquiry Officer received the report.

  4. The insurance company will be notified of the compensation order.

How to File a Third-Party Car Insurance Claim?

  1. If your car causes any loss or damage to a third party, inform the nearest police station and contact your insurer immediately. However, if a third party has caused damage to your vehicle, note down the insurance details of the third party involved and inform their insurance provider.

  2. Once your insurance provider is informed about the mishap, they will transfer the case to the Motor Insurance Claim Tribunal.

  3. The tribunal court will determine the compensation amount to be paid to the third party.

Documents Required for Third-Party Claim

Make sure you submit these documents for a third-party car insurance claim:

  • Duly signed and filled claim settlement form

  • Copy of Registration Certificate of your car

  • Copy of car insurance policy

  • Copy of driver's license

  • FIR in case of major accident or theft

How to File a Car Insurance Claim During a Theft?

  1. If your car has been stolen, file an FIR at the nearest police station and inform your insurance provider as soon as possible.

  2. If the police department is unable to locate your four-wheeler, a no-trace report will be issued.

  3. You will have to submit your original car keys, copy of FIR, Registration Certificate, etc. to the insurance company.

  4. Based on the Insured Declared Value (IDV) of the car, the insurer will compensate you for the theft claim.

Documents Required for Theft Claim

Here are the documents that you need to provide while filing a car insurance theft claim:

  • Duly signed and filled claim settlement form

  • Copy of Registration Certificate of your car

  • Copy of car insurance policy

  • Copy of driver's license

  • Original copy of FIR

  • Original tax receipt

  • No-trace report for the stolen vehicle issued by the police

  • Theft declaration from the concerned Regional Transport Office (RTO)

  • Form 28, Form 29, Form 30, and 35

  • Subrogation letter

  • Car keys and warranty card

Tips to File Car Insurance Claim Successfully

  • Gather Relevant Information

If your car was involved in an accident with another vehicle, note down its registration number and the driver’s information. This would help you decide whether to raise a claim under your plan or on the third-party’s car insurance coverage.

In case there is no third-party involved in the accident, ensure that you assess the extent of the damage incurred and gather substantial evidence.

  • Determine the Nature of Your Claim

In case of an accident with a third party, you have two options: you can either file 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 to secure your no-claim bonus and continue to maintain a claim-free year. However, if you are solely responsible for the damage, you have no choice but to raise a claim under your car insurance plan.

  • Inform the Insurer

It is recommended to not waste in intimating your insurer about the accident as such claims have a limited time window. If you fail to contact the insurer within the stipulated period, there are chances your claim might be rejected.

  • 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.

  • Obtain a No-Trace Certificate from the Police

If your car is stolen, you would also require a No-Trace Certificate while filing an insurance claim. The No-Trace Certificate is issued by the police authorities stating that the vehicle stolen could not be traced. This document is crucial for settling car theft claims.

  • Raise a Claim Request

Once you have the required documents, raise the claim and submit the paperwork to your car insurance provider. The documents shall be verified and reviewed and your insurance claim will be settled.

To Conclude

Road accidents and mishaps are common; however, it is crucial to financially secure your vehicle from unfortunate perils. With the extensive coverage available under a comprehensive car insurance plan, you can be worry-free while driving on Indian roads.

Browse through the car insurance plans on Finserv MARKETS and avail the best coverage with lucrative add-on covers! Apart from the effortless claim settlement, you can benefit from features such as 24x7 roadside assistance, swift renewals, third-party coverage, and more.

Besides, you can use the car insurance calculator to determine the policy cost based on your desired coverage and add-ons now. Explore exciting offers today!

Check Out Car Insurance Plans Available at Finserv MARKETS

FAQs on Car Insurance Claim

  • ✔️How many times can I file car insurance claims during the policy term?

    There are no such restrictions on the number of insurance claims you can file during the policy tenor. You can raise claims during the policy term up to the Insured Declared Value (IDV) of the plan. 

  • ✔️Can I raise a car insurance claim if I take my vehicle to a non-network garage?

    Yes, you can easily file a car insurance claim in case you take your vehicle to a non-network garage. But you will first have to pay for the repair cost and only then can you raise a reimbursement claim to get the compensation amount.

  • ✔️Can I repair my damaged vehicle first and then file for an insurance claim?

    No. It is advised to inform your insurance provider regarding the accident and get your car inspected by the appointed surveyor. Getting your vehicle repaired without intimating the insurer can lead to claim rejection.

  • ✔️What is the compensation offered in case my car is damaged beyond repair?

    The insurance provider will compensate you as per the Insured Declared Value (IDV) of your car insurance plan in case of total loss.

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