When to Raise a Car Insurance Claim and When to Avoid?
Sometimes an option that looks most obvious may not be the most productive and this is very much relevant to a motor insurance claim. You may wonder how? Well, one thing that comes to your mind when your car meets with an accident is raising its insurance claim, isn’t it? This is because you have paid the premiums and even renewed your car insurance policy on time and such scenarios are the best time to use it. But wait.
Sometimes rising a motor insurance policy’s claim is not the most productive solution though it looks obvious. This is because it will affect the premium of your car insurance policy. So, take a break before making a claim, review the scenario closely, and then get into any conclusion. Remember the below-mentioned three factors before raising any claim:
Factors to Consider Before Rising a Claim
- Depreciation: Vehicles depreciate. The reason for the same is a day to day wear and tear that every vehicle faces. In this way, the value of any car decreases with time. Consecutively, the value of the parts of the car as well as decrease. Therefore, your insurance provider does not compensate you fully in case of any damaged part. Your insurance provider will do so for the depreciated value according to the terms and conditions.
- No Claim Bonus or NCB: The insurance providers offer a discount at the time of renewal of your comprehensive car insurance policy if you have not raised your claim during the previous year of the policy (or for long term plans limited claims). This is a kind of reward that the insurance company gives you for your good driving skills and not rising any claim for the entire policy tenure. The No Claim Bonus is incremental and it can become zero if you have raised a claim or in case of a long-term comprehensive policy, you have crossed the specified limit. You can get NCB as high as 50%, is all the criteria are met. Therefore, it is suggested to think before rising any claim against your car insurance policy.
- Deductibles: In a motor insurance policy, there are two types of deductibles – Voluntary and Compulsory. In both situations, you have to provide a predetermined amount from your pocket during claim settlement. Consider this as your minimal contribution during claim settlement. In this way, the settlement is not about getting money instead it has the component wherein you should spend some amount also.
The scenario of Car Claim
Keeping the aforementioned points in mind while thinking whether to raise a car insurance claim or not will for sure let you take the informed decision. See the amount factoring the depreciation and evaluate it with your No Claim Bonus that you may lose if you go for it. Keep in kind the payable deductibles also. After doing the calculations, you will get to know whether you should raise a claim or not. To understand it, let us take an example, suppose your claim amount after including the depreciation of your vehicle is Rs.1000. On the other hand, your deductible plus No Claim Bonus comes out to be Rs.1200. Therefore, in a way, you will be at a loss of Rs.200. In addition to this, the NCB that you have accumulated so far will be reset to zero. So, in simple terms, it is good to raise a claim for some major damages to your car whereas it is not wise to avail the facility of a claim for minor car issues.
Going to Renew Motor Insurance Policy? Stop! Review First!
You can raise a car insurance claim only when your policy is not expired and to keep this active, you should renew your car insurance policy regularly. However, at the time of policy renewal, it is recommended to review it then renew it. Whether you are having a third-party liability insurance plan or you have a comprehensive policy with wide coverage, it is suggested to review the inclusions of your plan before renewing your insurance policy. Always remember, you always have the option of selecting a different car insurance provider to get the best car insurance at the time of policy renewal, if you want.
Got Service from Unauthorized Garage? Want to Raise Car Insurance Claim?
There are situations when it is beneficial to go for a car insurance claim. Most of the car insurance providers in India offer two options – Reimbursement and Cashless facility. In this section, we will discuss how to raise a claim if you have got your car repaired through some unauthorized garage.
Generally, motor insurance providers have a tie-up with car service stations or garages of all over India. This makes their claim settlement process fast and simple. However, to take your damaged car to a network garage is not always possible. In such a case, you get your car repaired from any nearby garage. This non-network garage is termed as an unauthorized garage. In such a situation, if you are thinking about whether you did right or not, then read the following points:
- Claim Types: There are two types of car insurance claims – cashless and reimbursement. Cashless claims are Reimbursements. In cashless claims, the insurance provider settles the claims directly with the network garage. All you have to pay is the pre-decided deductibles. On the other hand, the reimbursement claims are those wherein you pay the amount of repair from your pocket and then claim for the reimbursement from your insurance provider. In the process of reimbursement, the unauthorized car garages come in the picture.
Process of Claim in Case of Unauthorized Car Garage
One important aspect of the process of claim settlement is car inspection and survey. A car insurance provider sends one of its surveyors for analyzing the level of damage that is caused to your vehicle. This is a smooth process when we talk about cashless claims because the insurance provider coordinates with the network garage directly and gets the survey done.
While you go for reimbursement because of service from an unauthorized garage, you should make sure that your survey is completed before your car is repaired. The surveyor must inspect your damaged car and analyze the level of damage.
The car is repaired only after the consent of the insurance provider. This is one of the most important steps in the situation when the repair is done through some unauthorized garage. As soon as it is done, get your car repaired, and after that get the reimbursement of the repaired amount.
Requirement of Survey
When the garage from where you are getting your car repaired is unauthorized, then there is an issue of coordination between the insurance provider and the network garage. If your car garage repairs your car before the inspection by a surveyor of the insurer, then the insurance provider will not get to know about the level of damage. Nobody wants to be in such a situation as it may lead to claim rejection. Moreover, it is also suggested to give the correct answers to all the questions that are asked by the insurance surveyor with patience. Tell the facts and explain the incident. Any kind of false information can lead to claim rejection.
The car repair garages that are affiliated with car insurance providers are known as network garages. You must have a look at the list of network garages provided by your motor insurance provider before renewing or purchasing a car insurance.
It is suggested to verify whether decent car repair garages are around and in your locality. You can get to know about this by calling or emailing your car insurance provider.
Summing It Up!
So keep these points in mind while raising a claim for your car insurance policy and make a decision whether you should opt for it or not.
Q1: Is it possible to change my car insurance provider at the time of renewing my long-term motor insurance plan?Ans: if you are not satisfied with the services of your car insurance provider or got to know about a new insurance provider who is offering better plans, then you can go for a new plan at the time of old policy renewal.
Ans: Yes, you can purchase as well as renew your car insurance policy online in a convenient, simple, and fast manner. The choice is yours.
Q3: Why is comparing motor insurance policies on various grounds is recommended before purchasing insurance for a car?Ans: Make sure to compare different car insurance policies before making a final decision of buying one. Many people go for a low car insurance premium instead of a plan that provides wide coverage. However, car insurance premiums should not be your only deciding factor when it comes to comparing different policies. The services offered and coverage provided are as well important. The claim settlement ratio is also necessary. You can check the reviews of your car insurer online and then can make a decision.
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