Step-by-step Car Insurance Claim Procedure for Hassle-Free Approvals

Car accidents or damage to your car can be a stressful situation in itself, and making a claim to your insurer may seem tough and challenging, given the tense circumstances. Sometimes, insurance claim delays can be frightening. They can occur when there is a documentation mishap or procedural mistakes made during the claim process. Having a clear understanding of the process, like knowing the documents required and the steps to follow right after an unexpected incident, can save you ample time and stress. 

This article provides a step-by-step guide on how to make a car insurance claim and the types of claims in car insurance. Additionally, it discusses the types of coverage in car insurance, common reasons for claim rejection, and a few tips to make this process hassle-free. 

Table of Contents

1. Understanding Car Insurance Claim?
   • Meaning of Car Insurance Claims
   • Importance of Knowing the Process
2. Types of Car Insurance Coverage
   • Third-Party Insurance (Mandatory Coverage)
   • Own Damage Car Insurance
   • Comprehensive Car Insurance
3. Types of Car Insurance Claims
   • Cashless Claim Process
   • Reimbursement Claim Process
4. Important terms to know
   • Compulsory Deductible
   • Depreciation in Car Insurance
   • No Claim Bonus (NCB)
   • Insured Declared Value (IDV)
5. Car Insurance Claim Procedure for Accidents
   • Informing the Insurance Company
   • Collecting Evidence (Photos/Videos)
   • Filing an FIR
   • Claim Form Submission
   • Vehicle Inspection by Surveyor
   • Repair and Claim Settlement
6. Car Insurance Claim Process for Third-Party Claims
   • Informing the Insurer
   • FIR Filing
   • Filing Case with the Motor Accident Claims Tribunal
   • Surveyor Inspection
   • Tribunal Decision & Settlement
7. Car Insurance Claim Process for Stolen Cars
   • FIR Registration
   • Informing Insurer and RTO
   • Obtaining Non-Traceable Report
   • Document Submission
   • Ownership Transfer Process
   • Claim Settlement Based on IDV
8. Documents Required for Car Insurance Claims
   • Claim Form
   • Insurance Policy Copy
   • RC & Driving Licence
   • FIR Copy (If Applicable)
   • Repair Bills & Photos
9. Common Reasons for Car Insurance Claim Rejection

• Driving Without Valid Licence
• Driving Under Influence
• Delayed Intimation
• Repair Before Inspection
• Policy Lapse or Negligence

11. Tips for Hassle-Free Car Insurance Claim Approval

• Inform Insurer Immediately
• Renew Policy on Time
• Submit Complete Documents
• Choose Network Garage
• Opt for Useful Add-Ons

12. Conclusion: Ensuring a Smooth Car Insurance Claim Experience

13. FAQs

Understanding Car Insurance Claims 

Essential to the car Insurance claim procedure is knowing the type of coverage purchased from the insurer and the type of claim you have opted for in your policy.

Types of Coverage 

There are three types of coverage policies available for car insurance, and it is also important to note that claims made should be valid because claims for damages caused by intoxicated driving and wear and tear are not covered under the insurance policy. 

• Third-Party Only: A third-party policy covers the damage caused to another vehicle involving the insured vehicle. If you have a third-party policy that is mandatory by law, the insurer only approves claims that are made for the damages incurred to a third-party vehicle. 
• Own Damage Car Insurance: An own damage plan covers damages caused to the insured vehicle, so the claim made should only be to cover the damages incurred to the insured vehicle, not any third-party vehicle. 
• Comprehensive Car Insurance: This plan combines both third-party liability and standalone own damage insurance, acting as a single package that offers coverage to your car and a third-party vehicle. 

Types of Car Insurance Claims 

You can make a claim in two ways:

• Cashless Claim: A cashless claim is eligible when the damaged vehicle is repaired in one of the insurer’s network garages. It is called a cashless claim as the settlement is done directly between the garage and the insurer.
• Reimbursement Claim: It is when the policyholder pays directly to the garage, including the GST on repair and labour services, and then submits a claim to the insurer. The insured car is usually repaired in any garage of the policyholder’s choice. 

For both claims, a certain car insurance claim procedure should be followed for the successful approval of a claim.

Important Terms To Know 

Before starting with a car insurance claim procedure, there are a few essential terms that you should know to avoid any mistakes. 

• Compulsory Deductible: A compulsory deductible is a fixed sum that should be paid by the policyholder during claim settlement. This is a fixed amount usually agreed upon by the policyholder while purchasing the policy. 
• Depreciation: As your car ages, its value decreases, and a certain percentage of the amount is deducted from your claim payment as depreciation. Depreciation starts quite literally the moment you purchase your car, and the percentage increases with every passing year. The insurer also offers an add-on called zero depreciation, with which the depreciation from your claim can be avoided if added to your standard car insurance policy. 
• No Claim Bonus: It is a discount that is offered to a policyholder on their renewed car insurance premium if no claims were made in a policy year. The no-claim bonus percentage accumulates with every consecutive claim-free year, but it resets to zero when a claim is made, regardless of the claim amount.
• IDV: IDV is the Insured Declared Value, which is the market value of your car and also refers to the amount the car is insured for. If your car is stolen or damaged in an accident, the amount the insurer pays will be based on this value. 

Car Insurance Claim Procedure for Accidents 

The car insurance claim procedure for accidents can be different, as there are two vehicles involved. Below is a step-by-step guide on what to do when your car is involved in an accident.

1. Inform Your Insurance Company: The First step is to inform your insurance company, and it is better if done at the earliest. 
2. Photos/Videos: If a third-party vehicle is involved, make sure to take photos and videos of the damage incurred at the accident site.
3. File an FIR: an FIR is a mandatory document for an accident claim if a third-party vehicle was involved. 
4. Claim Form: After filing an FIR, fill out and submit the claim form and documents to the insurance company. The forms are usually available on the insurer’s website and can also be collected from their branch office. 
5. Inspection: After the submission of the claim form, the insurer will send a surveyor to inspect the damages. 
6. Documents Submission: The next step after the survey is complete is to submit the repair invoice from the garage with the other required documents in case of a reimbursement claim. For a hassle-free claim, you can take your car to the network garage after the inspection.
7. Claim Settlement: In terms of reimbursement claims, the insurer will settle the amount to the policyholder, and for a cashless claim, the settlement will be made between the insurer and the garage. 

Car Insurance Claim Procedure for a Third-Party Vehicle

The car insurance claim procedure for a third-party claim is different from the own-damage claims, as there is a third-party vehicle involved. 

1. Inform Your Insurer: The first step is to inform the insurer about the accident. After which, you can take photos or videos of the damage incurred to your vehicle and the third-party vehicle.
2. File an FIR: The next step is to file an FIR at the jurisdiction where the accident took place and make sure to keep the FIR copy safe for further procedures. 
3. File a Petition with the Motor Accident Claims Tribunal: A petition must be filed with the Motor Accident Claims Tribunal. Following this, the insurer will appoint a lawyer for legal representation. 
4. Vehicle Damage Assessment by a Surveyor: Then the Tribunal may appoint a surveyor to inspect the damage to the car. 
5. Tribunal Decision and Claim Settlement: The decision will be made by the tribunal, after which the insurer will settle the payment with the third party.

Car Insurance Claim Procedure for a Stolen Car

The following is a step-by-step guide on how to make a claim if your car is stolen. 

• File an FIR and Inform Your Insurer: File an FIR and submit a copy to the insurer.
• Inform the Regional Transport Office (RTO): Notify the RTO about your stolen car, and they will provide a theft declaration certificate. This step is mandatory under the Motor Vehicles Act to prevent the car from being re-registered or sold. 
• Obtain the Untraceable Report from the Police: The police will then give a report if the vehicle is untraceable and cannot be found. 
• Submit the Police Report to the Insurer: Submit the police report to the insurer, after which the insurer will send a surveyor for further claim-related investigation. 
• Submit Required Documents to the Insurer: After the inspection, you will be required to submit the registration certificate for your stolen car with the duplicate keys. 
• Transfer Vehicle Ownership to the Insurer: Then, you will be required to fill out RTO forms to transfer the ownership to the insurer.
• Claim Settlement Based on IDV: Your claim will be settled based on your car’s IDV. If you have purchased the return to invoice add-on, then you will receive the original invoice amount. 

Documents Required for a Car Insurance Claim

The documents required during the claim process may vary depending on the type of claim. However, the following are generally required:

• Filled claim form
• Copy of the insurance policy
• Registration Certificate (RC) of the vehicle
• The driver’s driving licence at the time of the accident
• FIR copy (in case of theft, third-party damage, or major accidents)
• Repair estimate or final invoice from the garage
• Photographs of the damaged vehicle

Common Reasons for Car Insurance Claim Rejection

Here are the common grounds for a claim rejection:

• Driving without a valid licence
• Driving under the influence of alcohol
• Driving under the influence of alcohol
• Delayed claim intimation
• Damage caused due to negligence or illegal activities
• Repairing the vehicle before the surveyor’s inspection

Tips for Hassle-Free Approval

Here are some practical tips that can help make your car insurance claim process smoother and hassle-free.

• Inform Your Insurer Immediately: Informing the insurer at the earliest is essential, as delays might lead to more complications or even a delay.
• Renew Your Policy on Time: Renewing policies on time can give you hassle-free approval because an expired policy will make you ineligible for claims.
• Submit All Required Documents Properly: Proper submission of documents can speed the claim process. So, make sure you have all the required documents ready for a smooth claim settlement process.
• Choose a Network Garage for Repairs: When repairing your car, going to a network garage might be beneficial, as the settlement will be made directly to the garage. 
• Consider Useful Add-Ons: Having add-ons like zero depreciation and return to invoice can be beneficial during claim settlement. 

Conclusion 

For policyholders, making a car insurance claim after a car accident or damage can be confusing if they are not aware of the claim process. Knowing the above-mentioned procedures can help you have a hassle-free claim process and peace of mind.