A Comprehensive Guide to Car Insurance Claims

A Car insurance claim is basically an official request made by a policyholder for compensation of damages incurred by them. This compensation depends on the coverage guaranteed by the insurance company to the policyholder as per the terms and conditions of the insurance policy.

The compensation amount provided by the insurer also depends on factors such as the type of policy you purchased, the coverage guaranteed to you and the Insured Declared Value (IDV) chosen for your car when the policy was purchased.

Types of Claims in Car Insurance

If you have a comprehensive car insurance policy, you could raise a claim for:

• Third-party property damage or personal injury to someone else or
• Own vehicle damage claim

If you have purchased a third-party policy only, then you cannot raise a claim for damages to your own vehicle.

Following are the types of claims in car insurance

• Third-Party Claim: If your vehicle has been in an accident causing damage to another vehicle, that is when you will be required to raise a third-party claim. In such cases, it is important to report the incident immediately to the police and the insurance company.
• Own Damage Claim: When your own vehicle is on the receiving end of damage, you raise an Own Damage Claim with your insurer. During such instances, you will be required to intimate the insurance company immediately in order to enable them to assign a surveyor for damage and loss assessment. The surveyor may visit the accident location or the garage to conduct the assessment. Once that is done, you can get your car repaired and thereafter raise a claim with your insurance provider.
• Theft Claim: In case of a stolen car, you will be required to report the incident to your insurer and the police immediately. When raising a claim for your stolen vehicle, ensure that you have all necessary documents in place and that the same are submitted along with the duly-filled claim form to the insurance company.

Modes of Claim Settlement in Car Insurance

A car insurance claim settlement can be done in the following two ways:

1. Cashless Claims: If you are opting for a cashless car insurance claim, you do not have to pay anything out of your pocket (except for items that are not covered in your insurance policy) at the time of repair at the network garage of your insurance provider. The claim will be settled on your behalf by your insurer. The damages, however, must be covered in your car insurance policy.
2. Reimbursement Claims: If you are opting for a reimbursement claim, you will have to pay for repairs at the time of the incident. The eligible amount will be reimbursed to you by your insurance provider based on the terms and conditions included in your car insurance policy. In this mode of claim settlement, the policyholder does not necessarily have to get their car repaired at a network garage. They just have to submit the requisite bills and repair receipts along with other necessary documents to the insurance company.

Getting your vehicle repaired at a network garage has its advantages and is considered to be the more comfortable choice, however, if you are unable to find one in the vicinity of the accident location, then getting a reimbursement later makes more sense.

How to Register Claims

In case of a cashless claim settlement, you have to follow the below-mentioned steps:

• Call your provider on the toll-free number and register the cashless claim. You can do this on the website, through email or mobile app.
• Once the claim has been registered, you will receive a claim registration number which can be kept handy for any future communications or references.
• Next, you will have to take your car to any of the authorized network garages for damage repairs. At the garage, a surveyor may be appointed by the insurer to assess the extent of damages to the vehicle and admissibility of the same.
• Your insurance provider after this will confirm its liability once all terms and conditions are considered.

In case of a reimbursement claim, you have to follow the below-mentioned steps:

• Call your provider on the toll-free number or through the website or via email and register your claim.
• Once the claim has been registered, you will receive a claim registration number which can be kept handy for any future communications or references.
• Next, you will have to take your car to any garage for repairs. For this, you will be required to submit all the necessary documentation to the insurance company.
• Finally, your insurance company will confirm its liability and initiate the process of reimbursement.

FAQs

1. Is the vehicle survey process necessary while raising a claim?

Yes, if your car has met with an accident and you are raising a claim for the same, you will be required to get the damages surveyed. This is, however, applicable in cashless claim settlements only.

A surveyor will be assigned to inspect your vehicle before the process of claim is initiated. However, many insurance providers also facilitate e-inspection wherein you can click pictures of your car and share them with the insurance company.

2. What happens if the policyholder fails to intimate the insurance company at the time of the incident?

In this case, there are chances of the claim getting partially or completely rejected. It is prudent to let the insurance company know at the time of the incident so that the claim process can be carried out smoothly considering the terms and conditions.

3. What would the compensation be if my car is totaled in an accident?

The term “totaled” refers to total loss of the insured car. In such cases, the policyholder receives the Sum Assured amount or IDV as compensation, as per the insurer’s discretion.