When Should You Avoid Filing Motor Insurance Claim?
Motor Insurance is the need of the hour. It one of the most important documents that every person driving a vehicle on Indian roads should hold. Apart from knowing, buying a motor insurance policy is mandatory another important factor that every vehicle owner must know is that the cases under which you must avoid filing a motor insurance claim.
Accidents often happen on the roads due to various reasons but the main reason being driver’s fault like over speeding, driving under the influence of alcohol or hit and run case. When an event of road accident occurs the first thing that comes to mind is the motor insurance under which your vehicle is insured.
Motor Insurance is the best tool with which you can cover from the unexpected financial expenses arising in case of road accident. The motor vehicle insurance plan consists of various types of motor insurance claims but the two main aspects under motor vehicle act insurance claim are Third-Party Damage and Own Damage. Both these aspects together make a motor insurance policy. On recent notification the regulator and government made it clear on the compulsory Personal accident cover for 15 Lacs for the owner driver under motor insurance policy.
The third-party damage covers for the financial losses caused to a third party’s property in a road accident while the own damage insurance covers for the damages caused to the insured vehicle. Anyone whose vehicle is damaged in a road accident shall first think of approaching the insurance provider in order to cover for damages.
Top #4 Tips to keep in mind before filing a motor insurance claim:
However, filing a motor insurance claim isn’t always the best way forward. Here are certain factors that you must keep in mind before filing for motor insurance claim process. Take a look-
No Claim Bonus
No Claim Bonus is a type of discount extended by the insurance provider to you for not filing any motor insurance claim in the current year. The no-claim bonus discount is usually given on the next year’s premium amount. The no-claim bonus becomes zero if you file a claim in any year.
Expert Tip: So, if the damages to your vehicle are petty, then rather than filing motor insurance claim it is best to bear the expenses as it might impact the premium amount as you shall not be receiving any no claim bonus.
Under the motor vehicle act insurance claim ‘Deductibles’ play an important role. A deductible is nothing but a certain percentage of expenses of an insurance claim that the policyholder has to bear. Under the motor insurance claim process the policyholder is required to pay the amount stated as deductible while the remaining amount is taken care of by the insurance provider. For instance, if the policy is a comprehensive policy without any add on like Zero Depreciation then depreciation on the replaced parts will be one such factor of deductible
Expert Tip: So, if the damages to your vehicle are minor then it is best to avoid filing a motor insurance claim as you might pay more as compared to the insurance provider due to the deductible clause.
Evaluate the Quantum of Loss
When a motor insurance claim has registered the insurance, the provider appoints a surveyor to asses and verify the damages caused to the vehicle and find the reasons for the damages. Under such scenario, if the surveyor / assessor is of the opinion that the damages are due to external accidental impact then your claim will be approved for further processing however if the surveyor / assessor opines that the damages to the vehicle are not due to external accidental impact or Old damages being tried to be clubbed under a single claim the chances of complete or partial approval of your motor insurance claim is done. In case your motor vehicle accident insurance claim is approved completely or partially then it is you who has to bear higher charges as compared to the insurance provider.
Expert Tip: So, it is best to file motor insurance claim only when there is a clear accidental impact. Do not mis represent the damages by clubbing old damages in the car to get it covered under the claim.
Increase In Premium
As we know the premium amount of the motor insurance is based on the history of claim i.e. if you have not filed any claim then you are eligible for no claim bonus however if you file motor insurance claim frequently then in such cases the renewal premium amount might increase. This increase in premium amount shall be due to repetitive filing of motor vehicle accident insurance claim and types of motor insurance claims.
Expert Tip: So, it is best to evaluate the amount of loss vis-à-vis the increase in premium and then if it still makes sense to file the claim, go ahead. If there is any doubt, it is best to refrain from filing a motor insurance claim.
All these 4 factors need to be considered before filing for a small motor insurance claim.
To conclude we can say that, the golden thumb rule is that you must file motor vehicle accident insurance claim only in case of where the financial loss is exceeding a particular threshold limit. If the damages to the vehicle are minor then in such cases it is best to avoid filing the motor insurance claim. Also, it is always recommended to discuss and get a clear understanding regarding motor vehicle accident insurance claim from your insurance agent before filing for any damages.