How Long Can an Insurance Company Take to Repair Your Car in India?
Car insurance offers essential financial protection for vehicle repairs after a road accident.
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Is There a Deadline to Settle Car Insurance Claims as per IRDAI?
Yes. Car insurers in India need to follow the deadlines set by the Insurance Development and Regulatory Authority of India (IRDAI). The TAT standards for auto insurance claims are outlined here.
| Process |
Deadline |
| Allocating a Surveyor |
24 hours of claim filing |
| Vehicle Inspection and Assessment Report |
Within 15 days of the allocation of a surveyor |
| Claim Approval/Rejection |
1. Within 7 days of receiving the report
2. After 15 days from the allocation of the surveyor, whichever is earlier |
How Long Do Insurance Companies Take to Repair Cars and Settle Claims?
Car insurance companies typically settle motor claims within 7 to 10 business days. However, the car insurance repair time limit can sometimes be affected by the following variables:
- The Extent of Damage: The duration of car repairs depends on how severely damaged the vehicle is. Minor damages are usually settled faster, while major repairs like engine replacement or cases of complete loss may take longer.
- Garage Repair Durations: Despite quick claim approvals, the garage may delay your car repairs. This could happen due to holidays, spare parts' unavailability, or garage backlogs.
- Reporting to the Insurer: The duration of the claim settlement process also depends on when the incident was reported to the insurer. The more promptly you inform the insurer, the quicker the remaining process will be.
- Surveyor Assessment: Your claim settlement timeline is also impacted by the amount of time it takes the insurance surveyor to inspect the damage and report.
5 Ways to Avoid Delays in Car Insurance Claim Settlement
Here are five simple ways you can follow to avoid delays in car insurance claim settlements.
- Ensure Prompt Reporting: Inform your insurer about the car accident or other covered event as soon as possible. In case of accidental damage, you must report the accident within 48 to 72 hours.
- Provide Complete Documentation: It is essential to submit every document your insurer has requested. Documents support your claim, and incomplete paperwork leads to repeated follow-ups or enquiries by the insurer.
- Prefer Cashless Claims: Most insurers offer cashless claim settlement when you get your car repaired from a network garage. Under this process, the insurer directly settles the repair bill with the garage, speeding up the claim process.
- Co-operate with the Surveyor: Help the surveyor complete the damage inspection faster to avoid delays in assessment. Provide any required information, disclose everything you know, and provide the required documents promptly.
- Understand Policy Terms Clearly: Knowing what is covered and what is not, can help you avoid unnecessary claim rejections or extra enquiries by the insurer.
What are your Rights Under IRDAI for Delayed Car Insurance Claims?
When you file a claim against your car insurance and face any delay or are unhappy with the insurer's service, you can use the grievance redressal options provided by the IRDAI.
File an Official Grievance
Contact the customer care number of your insurer to file a complaint about the car insurance claim delay. You can also register a complaint online through the Bima Bharosa website. This is a unified grievance portal created by the IRDAI. The complaints filed here are to be resolved within 14 days.
Right to Escalate to an Insurance Ombudsman
If you are unsatisfied with the solution provided by your insurer, you can escalate the issue with an insurance ombudsman. There is no fee for filing a complaint; you can do it online, by post or email. The insurer must comply with the ombudsman's award within 30 days. If this is not followed, the insurer is liable to pay a penalty of Rs. 5000 per day.
Also Read: List of Documents Required for Car Insurance Claim Process
Wrapping Up
The IRDAI has put in place legal rules and complaint-handling systems to make sure car insurance claims get settled quickly. If you own a car and want to file a claim, be sure to fill out the claim form completely, give all the needed documents, and work with the insurance company and the person who checks out the damage.
