The most critical step after you’ve filed an insurance claim settlement; whether it be acclaiming for an Own damage, a personal injury or both is negotiating for a deserved benefit, insurance companies definitely will offer you a Claim settlement. But are you sure about the offered settlement is the right and properly assessed one? You need to know the whole procedure of how to negotiate on a car insurance claim settlement.
Following steps discussed thoroughly might assist you on how to negotiate on a car insurance claim settlement:
Determining the value of your Car – What is your IDV?
The value of the car is in an insurance policy is captured as IDV which stands as Insured / Customer Declared value. The guideline factor is lined out in the Indian Motor Tarif as under
| Schedule of Depreciation for Arriving At IDV | |
|---|---|
| Age of the Vehicle | % of Depreciation for Fixing IDV |
| Not Exceeding 6 Months | 5% |
| Exceeding 6 Months but not exceeding 1 Year | 15% |
| Exceeding 1 Year but not exceeding 2 Years | 20% |
| Exceeding 2 Year but not exceeding 3 Years | 30% |
| Exceeding 3 Year but not exceeding 4 Years | 40% |
| Exceeding 4 Year but not exceeding 5 Years | 50% |
When IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles (i.e. models which the manufacturers have discontinued to manufacture) is to be determined on the basis of an understanding between the insurer and the insured. knowing the true value of your car is very important. Your car would be sent to a claims adjuster who would determine the amount that would be used to repair the car after it gets into an accident. You would be dealing with either your company or other driver’s company based on the type of claim it is.
The Traditional way to know your car’s value is obvious is your trusted mechanic. You can take your car to as many garages and mechanics as you like till you get an estimate that reflects upon the damage your car has received. You don’t have to accept any amount declared by the insurance companies if it does not match the estimates you received.
Initiating the car insurance claim right after the accident – The earlier the better
Your insurance service provider should be contacted immediately on occurrence of the accident. Your service provider will guide you on how to file the insurance claim, suggest and recommend you with the nearest garage with cashless facility and support you with any road side assistance like towing if required. The reason why claim intimation is highly emphasized is because this would ensure you to recall the smallest of details and report properly the damages and injuries.
Maintain Detailed Records
Besides knowing the true value of your car, it is also very important to maintain a detailed record of the accident arranged in a chronological order. The file would include Spot Photos, police records if the incident was reported to authorities, medical bills if anyone has sustained injuries due to the accident impact, car repair estimate, Detailed statement from Driver and witness. All these documents are really important to expedite the process. For Personal accident cases the damage must be accompanied with disability certificate (for disability cases), Death certificate, Post mortem certificate and Legal heir certificate (in case of fatal cases).
Work Out an Insurance Claim Settlement Amount – Indemnity Entitled
Motor insurance claim settlement is a standardized process in today’s competitive trend; the moment the vehicle meets with an accident the vehicle is moved to a garage for repairs. There are pre-approved labor and parts schedule make and variant wise. Compared to a decade back, insured had to negotiate on the labor; the standardization of the labor schedule is a boon hereby customer is saved from the task of negotiating his claim.
For Personal Accident Claims
Section III of all policy wording will speak about the schedule of claim payment on account of occurrence of a personal accident.
Claim Consent
You cannot rely on the speech of the adjuster. You should insist the whole claim settlements in writing. Every claim settled by an insurer must be supported by a discharge voucher which is to be signed by the customer consenting to the claim settlement offered by the insurer. The Discharge voucher should contain the detailed information regarding the claim amount which will be paid. If surveyor / insurer is asking you to sign a blank discharge voucher the same is to be declined. There are instances where customer is not happy with the settlement amount but is under pressure to sign the same due to time involved in that case insured can sign the Discharge voucher mentioning “Under Protest” it is recommended to take the approximate date by which you can expect the settlement documents from the insurance company, etc
Follow Up Regularly
After the procedure is completed, it is not advisable to just sit and wait for your claim because there are hundreds of claims to be dealt with daily. So, it is better to stay in touch with your adjuster and keep following.
We hope this detailing of the above steps on how to negotiate on a car insurance claim settlement will help you in negotiating your insurance claim