Car Insurance Claim Process Guide

Car insurance coverage is a legal requirement under the Motor Vehicles Act of 1988. As a result, every car on Indian roadways must be adequately insured. This coverage is helpful in the event of an accident involving the car.

A car insurance claim process is a request issued by an individual for reimbursement to your insurance provider. For example, one can request an insurance claim against the losses covered under their car insurance policy.

Car Insurance Claim Process

If you are searching for how to claim car insurance, Here are the steps for full car insurance claim process:

  • Step 1: Contact your insurance carrier as soon as possible after the accident to report the damage.
  • Step 2: Inform the police of the event and file an FIR.
  • Step 3: In the FIR, provide information on the car, the driver, and any witnesses.
  • Step 4: Make a claim with your insurance company and request that they send a surveyor to assess the damage.
  • Step 5: You can also submit your claim online if your insurance offers this service.

What are the Car Insurance Claim Instances?

There are several circumstances where we can claim car insurance. A few of these instances of car insurance claims are mentioned below:

a) Theft

An individual can file a theft claim if the car has been stolen.

b) Accidents

This is the most common type of claim and can be filed if the car is involved in an accident. There are, again, three sorts of claims that may arise under a car accident insurance claim.

  • Third-party claims occur when your car injures or kills a third party or damages third-party property.
  • When only your car is damaged, you can file your own damage claims. For example, you ram your car into a tree or a light pole.
  • Both third-party and own damage claims - when you harm or damage third-party property and your car is also damaged.

c) Own Damage Claim

If your insured car suffers loss or damage due to an accident, you may make an independent damage claim. Your insurer will cover the medical charges and repair costs incurred due to the accident.

Nonetheless, you must prove the extent of the harm or loss caused by the accident. Only if you have comprehensive insurance will you be entitled to this claim.

Types of Car Insurance Claims

Here are the types of car insurance claims in India-

Third-Party Insurance Claim

In the event of a car accident, the policyholder can file two types of claims: third-party claims and own damage claims. Following are the stages to understand how to claim insurance for car damage.

If a third-party car causes damage or harm to you or your car, you can file a third-party claim against the other car owner. If you are unable to work as a result of the accident, you may be eligible to claim medical expenses as well as compensation for personal injuries, property damage, and loss of earnings. If there is a death, compensation might be requested.

In the case of an accident in which your car collides with another vehicle and causes damage to a third-party vehicle, your insurance will cover the damages, loss, injuries, and deaths that you caused to the other party.

How to Claim Third-Party Car Insurance?

Here are the steps to claim your third-party car insurance:

Step 1: Get the insurance information for the vehicle that caused the damage to your car and notify the insurer about the occurrence.

Step 2: Report the event to your insurance company right away. Ensure to notify your insurer about the accident within the specified time range.

Step 3: After that, file a third-party claim with your insurer. You must file a third-party claim against the vehicle's owner if you are the victim. If your car causes bodily harm, death, or property damage to a third party, you must file a claim with your insurance company.

Step 4: Notify the police by dialling the police helpline number and submitting a First Information Report (FIR). Ensure to include the following information in your FIR:

  • The number plate number of the car involved in the accident.
  • If there are any witnesses, provide their names and contact information.
  • The driver's number.

Step 5: After that, you must file a claim with the Motor Accident Claims Tribunal that has authority over the region where the accident occurred or with the tribunal that has jurisdiction over the area where you (the claimant) and the third party (the defendant) reside or conduct business.

Car Insurance Claim for a Stolen Car

In case you have lost your car to theft, follow the steps listed down below to file a claim for the stolen car-

Step 1: Visit a police station and file an FIR at the earliest.

Step 2: Get the FIR copy and submit it to the insurance company,

Step 3: Next, once you get the final police report (court-stamped non-traceable report), submit one of its copies to the insurance provider.

Step 4: After this, the insurance company will allocate a legit investigator to make the claim-related investigation.

Step 5: After claim approval, you would be required to submit the stolen car's RC book to the insurance provider. Here, the name of the owner will then be renamed to the insurer’s name.

Step 6: Next, you will have to submit the duplicate car keys, a subrogation letter, and a notarized indemnity on stamp paper to the insurance company.

Step 7: After the procedure is completed, the claim will be disbursed by the insurance company. Note the amount of the claim will be equal to the IDV of your car.

Things to Remember While Filing a Car Insurance Claim

While filing an automobile insurance claim, there are a few things to keep in mind. These factors, when taken into account, aid in the settlement of the claim. 

Depreciation

If your car is being fixed, depreciation will apply to the parts that are being repaired. As a result, the insurance company would pay a portion of the real expenses after deducting the applicable depreciation (on plastic parts, 50% on metal parts based on car age, and no depreciation on glass).

You would then be responsible for the cost of depreciation as well as the unpaid claim.

Excess

Automobile insurance coverage has a mandatory excess component. This excess is the portion of the claim that you must pay. You would be forced to bear the excess in every claim.

Loss of No Claims Bonus

When no claims are filed during the policy year, the automobile insurance policy allows for a premium decrease on the following year's premium. These savings grow with each successive claim-free year.

If a claim is made, the discount is reduced to zero. As a result, avoid making minor claims. To prevent losing the accumulated no-claim discount, pay the repair costs of minor claims out of your own cash.

Exclusions

Exclusions are items that are not covered by the car insurance policy. If such exclusions are claimed, the claim will be denied. Hence, before filing a claim, determine whether it is covered or excluded.

Making Use of Add-ons

Add-ons are coverage features that supplement the scope of the car insurance policy. If you have added add-ons to your policy, see if they are handy at the time of claim.

For example, if you have a roadside help add-on and your car breaks down in the middle of the road, you can phone your insurance company and use the add-on to arrange for assistance.

Similarly, in the case of a zero depreciation add-on, the insurance provider would pay the complete claim without considering depreciation. Thus, check to verify if the chosen add-ons are being employed in the instance of your claim.

Preferred Parking Garage

Cashless claims are only paid out if the car is fixed at a preferred shop. Therefore, check out the preferred garages in the region before taking your car in for repairs.

You can also locate the garage using the toll-free number provided by the insurance company while registering the claim and driving the automobile to the networked garage.

Essential Documentations

Every claim necessitates submitting a legitimate set of papers along with the claim form. Copies of the driver's licence, RC book, policy bond, and, if applicable, FIR are all standard documents. Hence, before filing a claim, be sure you have all the necessary documentation.

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