Know About First Notification of Loss in Car Insurance
The primary reason to buy a car insurance is to get some financial protection in case of a loss or damage.
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What is First Notification of Loss (FNOL)?
The First Notification of Loss or FNOL in insurance is the first ever intimation or information provided to the insurer when the insured vehicle is damaged in any unforeseen situation. It can be considered as the first step required to file a claim under a car insurance.
Thus, in the event of a total loss, theft, or damage to the insured car due to any unforeseen incident, the initial intimation you provide to the insurer is termed as the First Notification of Loss.
How to File a FNOL?
Filing a car insurance claim involves several steps. However, the first and the most crucial one is to tell your insurer about the loss your vehicle incurred. The procedure of filing an insurance claim starts by giving an intimation of the loss and damage to your insurer until the claim is settled.
The First Notification of Loss or FNOL is the first step of this claim process. It takes place when you inform the insurance company about the loss or damage sustained by the insured car.
In the case of motor insurance, a driver/owner informs the insurer of the accident involving the insured vehicle by calling their customer care team, which is mostly available 24*7.
Based on this FNOL, the insurance company sends a surveyor who examines the extent of damage sustained by the insured vehicle. Based on the surveyor report, the insurance company settles the motor insurance claim.
Documents Required to File the First Notice of Loss
The First Notice of Loss in car insurance does not require any document as it is just a piece of information provided to your insurance company. However, the FNOL does require some information which is mentioned below:
- Your car insurance policy number
- Time and Date of loss,damage or theft
- Location of the incident
- Police FIR number
- A personal account of the incident.
- Details of the party at fault
- Relevant details of the insured vehicle
In the case of third party liabilities, the details of third-party damages should also be given to the insurance company.
Inspection of Damages After the FNOL
Once the FNOL has been registered with the insurance provider, it is their responsibility to get your damaged car repaired and then settle the claim at the earliest. Due to this, the need for inspecting the damages becomes important after you have submitted the FNOL.
Depending on the inspection report submitted by the surveyor, the insurer will determine whether the insured car has suffered a total loss, theft, or damages that can be repaired in a garage. If your car is stolen or totally damaged (damaged beyond 75% of its value), then you are entitled to receive the Insured Declared Value of the insured vehicle.
On the other hand, if your car sustains damages due to an accident or collision or any other reparable loss, the insurance company will pay for the repairs of the insured vehicle via cashless or reimbursement claim settlement.
However, all of this is only possible after the First Notification of Loss is submitted to the insurance company.
Importance of First Notice of Loss in Car Insurance
Everyone wants their car insurance claim to be settled without much effort and at the earliest hour possible. However, for this to happen, a policyholder needs to intimate the insurer about the loss or damage to the insured car soon after the incident. Even if it is your first claim, you must make sure to duly inform the car insurance company about the accident to the insurer.
Moreover, make sure to provide accurate information about the incident to the insurance company. Any discrepancy may result in the rejection of your motor insurance claim.
Thus, a policyholder should consider FNOL as an important step under the car insurance claim process.
For a car insurance company, the First Notification of Loss is an opportunity to gain the trust of its policyholders. If customers get a faster claim settlement after notifying about the loss to the insurer even if it is their first time making a claim, it will create a positive impact on them. Moreover, by providing an automated omnichannel solution for First Notice of Loss in car insurance, a motor insurance company can provide faster claim settlement with an instant communication process.
Thus, the first notification of loss is equally important for both policyholders and insurers.
As stated above, the First Notice of Loss is the initial but critical step in the car insurance claim process. From a policyholder's point of view, it is the foremost step to get their compensation fast. On the other hand, for a car insurance company, FNOL is an opportunity to improve the customer's trust and reliability in them. Hence, make sure to file the First Notice of Loss as soon as your car meets with adversity.
