Make Minor Car Insurance Claims With Small Repair Claim Add-On Cover

Every car is exposed to a plethora of risks as soon as someone buys it. Your vehicle is the responsibility of your car dealer only until it is sold to you and leaves the showroom. Once you take your car home, it is your duty to protect it from any mishap, be it an accident or a natural calamity, such as floods. No matter how good a driver you may be, you cannot protect your car from every danger at all times. That’s why people buy motor insurance so that they are mentally and financially prepared for any loss or damages to their cars.

A car insurance policy protects an insured four wheeler from any unpredictable loss or damages caused due to unfortunate events, including accidents, third party liabilities, fire, manmade calamities, natural disaster and theft. However, you cannot recover any damages to your car with third party insurance. For the uninitiated, third party insurance covers only the third party legal liabilities of the car owner arising out of causing third party property damages, death or bodily injuries in an accident.

If you want your car insurance to cover any loss or damages to your car, you need to purchase a comprehensive insurance. Comprehensive car insurance provides coverage for own damages to the vehicle along with third party insurance cover. Furthermore, it also provides personal accident cover for the owner-driver of the car which is not available under third party insurance.

Car Insurance Claims

An accident can occur anytime irrespective of whether you were driving it or it was standing in your parking. With the best car insurance in India, any loss or damages to your four wheeler will be paid for by your motor insurance company. To get your losses recovered, all you need to do is to make an insurance claim with your insurer.

An insurance claim is an official intimation to the motor insurance provider about the mishap, such as theft, accident, etc., involving the insured car. It is an appeal to your insurance provider to cover the loss or damages suffered by your car in the light of the mishap. Once your insurer approves your claim, they will pay the claim amount to you. Moreover, your car can also be repaired on a cashless basis if you take your four wheeler for repair at a network garage of your insurance provider.

As part of the claim procedure, your car may be subject to an inspection from a surveyor sent by your insurance provider. The job of the surveyor is to analyse the damages caused to the car on behalf of the insurer and submit the survey report to them. You may be also required to submit a few documents to the surveyor or the insurer in support of your claim.

Minor Car Insurance Claims

An accident can be small or of large intensity. A small accident may only cause minor damages to your car that may incur small expenses. For example, a small car accident may lead to a minor dent at the front of your car. On the other hand, a major accident can cause severe damages or total loss of your car. For example, if a huge tree falls on top of your car during a cyclone, it may lead to expensive repair work.

In the first example, the damage is small and does not involve costly repair work. However, in the second example, the damage can be extremely high leading to expensive repair, which everyone may not be able to afford. Car insurance is the only way to afford major repair work on your four wheeler resulting out of an unfortunate event.

Moreover, minor car insurance claims should be avoided to gain long-term benefits. This may come at the cost of paying for minor car repair expenses from your own pockets. But what if there is a way to claim minor damages to your car while keeping your long-term benefits intact. Fortunately, you can do so with the help of small repair claim add-on cover.

What Is Small Repair Claim Add-On Cover?

Small repair claim is an add-on cover which allows car owners to claim for minor damages to their vehicles without impacting their No Claim Bonus percentage. It allows them to get their cars repaired for minor damages and claim the incurred expenses under their four wheeler insurance policy. The small repair claim cover mostly provides coverage for the expenses incurred on repair work, which does not involve the replacement of any parts.

Mostly, small repair claim cover provides coverage for the following repair-related services:

  • Anti-rust coating
  • Battery replacement
  • Brake overhaul
  • Car balancing
  • Car interior cleaning
  • Clutch overhaul
  • Engine tuning
  • Gearbox overhaul
  • Minor Denting (excluding welding and cutting work)
  • Opening - Fitting
  • Painting
  • Paid service labour
  • Polishing
  • Suspension overhaul
  • Twenty points electrical check-up
  • Tyre rotation
  • Wheel Alignment

Benefits of Buying Small Repair Claim Cover

Here are some of the benefits of buying small repair claim cover under the best car insurance in India:

  • No Impact on NCB

    In the absence of small repair claim cover, you will lose out your accumulated No Claim Bonus if you make a claim. No matter how small your claim amount may be, your NCB percentage will restore to zero. But with small repair claim cover, any minor damage claim under your four wheeler policy will have no impact on your NCB. Thus, you will be able to claim minor car repair expenses as well as keep your NCB intact.

  • Minor Damages

    As a result of an accident, a car can develop several minute problems that may need repairs. These minor repair work may not be expensive but can kill your No Claim Bonus if an insurance claim is made. However, small repair claim cover allows you to claim the cost of a variety of repair-related services including battery replacement, engine tuning, minor denting, paid service labour and tyre rotation, without adversely impacting on NCB.

Things to Keep in Mind While Buying Small Repair Claim Cover

Just like other add-on covers, small repair claim cover consists of certain terms and conditions. Take a look at the things to keep in mind while buying small repair claim cover:

  • Small repair claim is an add-on cover and hence, needs to be purchased by paying a higher premium at the time of buying the best car insurance in India.
  • Since it is an add-on cover, it cannot be purchased with third party insurance. Only car owners with a comprehensive insurance policy can buy small repair claim cover.
  • The small repair claim cover is only applicable if the repair work is carried out at a network garage of the motor insurance company.

Reasons to Avoid Minor Car Insurance Claims

You may have heard people asking you to avoid making a minor car insurance claim. A claim is supposed to get your expenses or losses recovered. Thus, you may argue that why should you pay for even a small repair work if you have an insurance cover. You do have a valid point but avoiding minor claims is beneficial in the long run. Here are some of the reasons why you should avoid making minor car insurance claims:

  • Loss of No Claim Bonus

    Every claim that you make restores your accumulated No Claim Bonus (NCB) to zero. The NCB is a discount that helps a car owner to save on his/ her renewal premium. A person can earn a minimum NCB of 20 per cent after the first claim-free year to up to 50 per cent NCB after five consecutive claim-free years. The claim amount should be worth losing your NCB and therefore, you should avoid making claims for small amounts that you can afford.

  • Payment of Deductibles

    Even the best car insurance comprise of deductibles. A deductible is a part of the claim amount that is payable by the policyholder during claim settlement. Every time you make a claim, you will have to pay a fixed amount as deductible. In case your deductible is close to or more than the claim amount, then it makes no sense to raise a claim with your insurer as you will either get a small amount or nothing at all. Therefore, you must raise a claim only when the claim amount is substantially more than your deductible.

  • Rise in Future Premiums

    As you may be aware, your car insurance claim history impacts your renewal premium. People who have made several claims in the past are considered irresponsible drivers and are, therefore, offered a higher premium. This situation may still be avoided in case of third party insurance claim as the accident is someone else’s fault. But even the minutest own damage claim can upset your claim history and lead to an increase in your future car insurance premiums.

In a Nutshell

Avoiding minor car insurance claims is the best way to keep your No Claim Bonus safe and keep your future premiums low. But if you don’t want to bear the cost of repairing minor damages in your car, small repair claim add-on cover might just be the right thing for you. So go ahead and buy small repair claim cover under the best car insurance in India to save yourself from paying for even the smallest car repair work.

Written By: PolicyBazaar - Updated: 28 August 2020
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