Car Insurance Claim Process- A Step-By-Step Guide

Many vehicle owners often struggle with the car insurance claim process and sometimes even face claim rejections. To help you navigate, here is a step-by-step guide on how to claim car insurance and ensure a hassle-free experience.

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Navigating the Car Insurance Claim Process

The car insurance claim procedure involves these essential steps that you must follow to ensure a hassle-free claim settlement:

• Inform Your Insurer: Immediately after the accident, ensure safety and inform your car insurance company to report the damage.
• Police FIR: In case of theft, third-party damages/loss, or fire incident, file the FIR (First Information Report) at your nearest police station, providing information about the car, the driver, and any witnesses.
• Collect Evidence: Take clear photos/videos of the damage and the place of the incident to submit to your insurer as proof.
• Damage Inspection: Your insurance company will assign a surveyor to assess the damage to your car.
• Document Submission: After the vehicle inspection, you need to submit the necessary documents to your insurer.
• Vehicle Repairs: Upon claim approval, you can get your car repaired either at an insurer-authorised garage or a non-approved one.

Types of Car Insurance Claims

In India, there are generally two types of car insurance claims:

• Third-Party Claims: A third party car insurance policy is mandatory by law. Claims under third party insurance cover the policyholder's liability for damage or injury to other individuals in an accident. This includes bodily injury or death as well as property damage.
• Own Damage (OD) Claims: An own damage car insurance claim protects your own vehicle, covering damage or loss from accidents, fire, natural or man-made disasters, or theft.

How to Claim Car Insurance For Accidents?

To raise a claim under your comprehensive car insurance in case of damages to your own car due to an unforeseen accident, follow this simple vehicle insurance claim process:

1. Intimate Your Insurance Company

   First and foremost, inform your insurance company about the accident at the earliest. You must submit a duly filled & signed claim form and the requisite documents to your insurance company, take your car to the workshop, and get a repair estimate of the damaged vehicle. The forms are available on the insurers' websites as well as at their offices.

2. Vehicle Inspection

   The insurance company will send a surveyor to assess the damages. The surveyor will prepare a report and pass it on to the insurer, and you will also receive a copy.

3. Submit Documents

   After the survey is completed, you will have to give the surveyor the duly signed repair invoice payment receipt and other documents, who in turn will send them to the insurance company for verification.

4. Repairs and Claim Settlement

   Upon successful verification, the insurer will approve the claim and you can take your car for repairs. Now, there are two types of car insurance claim settlements- cashless and reimbursement. Let's understand how they both differ:

   Cashless Claim (Preferred)	Reimbursement Claim
   You take your car to the insurer's network garage. The insurer settles the bill directly with the garage.	You can get your car repaired at any garage of your choice, pay the bill from your pocket, and submit the receipts to your insurer.
   It's faster & convenient and involves zero upfront payment (except for deductibles).	You have the flexibility to choose your own garage. The reimbursement amount is later transferred to your bank account.

   Remember that the insurance company will only reimburse you the claim amount if you submit the repair bills and invoices immediately after your car is released from the garage. So you cannot keep the small bills and hope to submit them at the end of the year.

Car Insurance Claim Process for a Third-Party Claim

Here's the car insurance claim process in case of third-party insurance:

• If a third party has sent you a legal notice seeking a claim, do not contact the party before informing your insurance company. Also, remember not to make any financial commitments or out-of-court settlements before speaking to your insurer first.
• Submit a copy of the notice to your insurer.
• You will also have to submit copies of the RC book of the car, the driving licence and the FIR.
• The insurer will verify the documents and assess the accident. If found satisfactory, you will get a lawyer appointed by them.
• If the Motor Accident Claims Tribunal directs you to pay the damages to the third party thereafter, the insurance company will directly pay the dues to the third party. The claim amount under a third party claim is dependent on the age, profession and income of the third party.

Car Insurance Claim Process for a Stolen Car

Here is how you can file a car insurance claim for a stolen car:

• File a Police FIR.
• Submit a copy of the FIR to your insurer.
• Upon receiving the final police report, make a copy of it and submit it to your insurer.
• The insurance company will assign a surveyor for further claim-related investigation. Cooperate with the investigator.
• Wait for the claim to be approved.
• Once the claim has been approved, submit the RC of your stolen car to your insurer. The owner's name will then be changed to the insurer's name.
• Submit your duplicate car keys, a subrogation letter, and a notarised indemnity on stamp paper to the insurer.
• Upon the completion of all formalities, the insurance company will process your claim, which will be equal to your car's IDV (Insured Declared Value).
• In case you have purchased the Return to Invoice cover, you will get the invoice price of the vehicle.

It is very important to be well-informed about the formalities related to making a car insurance claim. Whether you need to make a small claim due to a minor accident or a major claim due to the theft of your car, knowing the procedures will make the job a lot simpler for you. Moreover, it is always advised to do thorough research about the car insurance claim settlement ratio of a particular insurer before making a final purchase.

Also Read: Stolen Car Insurance Claim Process

Car Insurance Claim: Important Terms You Must Know

When raising a car insurance claim, you must keep in mind these terms that can affect your claim amount:

1. Compulsory Deductible

   A compulsory deductible in insurance is a fixed & small amount you have to pay from your pocket for every claim you make on your OD car insurance policy. It is also known as the file charge. The insurance company only pays the claim amount above this fixed sum.

   For example, your car gets damaged in an accident, and the repair bill is Rs. 10,000. Now, when you raise a claim, you will pay the deductible of Rs. 1,000 from your pocket, and the insurer will pay Rs. 9,000 (minus depreciation).

   Also Read: Role of Deductibles in Car Insurance

2. Depreciation

   As your car ages, it loses its value, which is known as depreciation. When you make a claim, the insurer takes this depreciation into account. This means the insurer will deduct this value from your claim amount, and you end up paying for the depreciated value of your car parts.

   However, if you have a zero depreciation cover, also known as bumper to bumper protection, the insurer will not consider the depreciation value and will pay the complete claim amount (except the compulsory deductible).

3. No Claim Bonus (NCB)

   The No Claim Bonus is a discount that insurers offer on your car insurance renewal premium if you do not make any claims during the policy year. This NCB in insurance ranges from 20% to 50% and grows with every consecutive claim-free year. If you make even a small claim, all your accumulated NCB resets to zero. Hence, for small scratches or minor damages, you should pay for the repairs from your pocket and protect your NCB.

4. IDV

   The IDV full form is Insured Declared Value, and it is the maximum sum assured the insurer pays you if your car is stolen or damaged beyond repair (total loss).

Car Insurance Claim Checklist: Important Documents Required

To ensure a quick and efficient processing of your car insurance claim, you must keep these essential documents handy:

• Duly filled and signed claim form
• Copy of your car insurance policy
• Copy of your car's RC (registration certificate) and DL (driving license
• Police FIR (if third party or theft claims)
• Original repair bills and payment receipts (in case of reimbursement claim)

You may also read: Documents Required for Car Insurance Claim

How to Claim Car Insurance From Policybazaar?

Policybazaar only provides claim assistance, though the insurer settles the claim. To file a car insurance claim, contact their claim assistance team at 1800-258-5881. They will guide you through the entire procedure, provide you with your insurer's contact information, help you understand the required documents, and escalate any delays or issues you might face during the car insurance claim process.

Wrapping Up!

Staying informed about how to claim car insurance is important to manage your claims efficiently. It allows you to get back on the road without unnecessary stress. Understanding the car insurance claim procedure and the steps involved can help simplify your claim experience. To ensure a smooth car insurance claim process, you must address any claim-related questions beforehand.