cover_img

Uncomplicating Car Insurance

with our certified POSP
advisors to guide you

Car Insurance Claim Process

A car insurance claim is a process in which the insured asks the insurer to compensate them for the damages or injuries caused to their car due to an accident on the road. In the case of third-party related claims, the insured asks the insurer to intervene when the insured is responsible for causing damages or injuries or both to a third party during an accident. Since the insured pays the premium for the policy, they can make a claim asking the insurer to pay or intervene in case of an accident.

Types of Car Insurance Claims

There are two types of car insurance claims that you must know. These include:

A car insurance calculator is what you need if you are seeking the right plan for yourself. It will help you compare different plans to find a plan that suits all your requirements. The benefits of the car plan calculator include:

  • Cashless Claims

    In the case of cashless claims, the insured does not have to pay upfront for getting their car repaired at the network garages of the insurer. The car insurer settles the claims with the garage on behalf of the insured. But the claims must be raised for the damages that are covered under the policy.

  • Reimbursement Claims

    For reimbursement, an insured pays for the damages caused. Then, according to the terms and conditions mentioned in the policy, a reimbursement claim is filed. For this type of claim, the insured does not have to get the vehicle repaired at the network garage of the insurer. The receipts and bills have to be provided to the insurer for reimbursement.

Claim Process for Car Insurance

Third-party Claims

In case of injuries or death occurring to third-party in an accident, the insurance company bears the liability. The victims (injured in case of injury / Dependents in case of death) have to approach the respective Motor Accident Claims Tribunal (MACT) to file a legal recourse for compensation that will be duly taken care of settled by the insurance company directly.

In case of an accident

  • Inform your insurance company about the damage that happened to your card immediately.
  • Inform the police and file FIR if your car has sustained multiple impacts, bodily injuries, and casualties to anyone in the accident.
  • You may refer to the insurance company's website or reach RenewBuy claim support to know your nearest cashless garage. The car is then taken to one such Network garage under the Insurance company. After taking the car to the garage, a repair estimate was made post commencement of the survey.
  • A surveyor from an insurance company visits and discusses the estimate with the workshop.
  • Once the surveyor finalizes the estimate and consents to his approval post, the garage will proceed with repairs accordingly.
  • The duration of claim settlement is decided by the insurance companies and varies from company to company.
  • Depending on the policy the opted, the Policyholder liability varies.

There are other details that you might have to submit along with these details. Once you provide these details, the car insurance premium calculator will determine the premium you pay for the policy.

In case of theft of your car:

Immediate information to police authorities- In case the car is stolen, one has to inform and file a complaint with the nearest police station or where the incident has happened.

  • Intimation to the insurance company- After informing the police station, one has to inform the insurance company about the incident.
  • Investigation- The insurance company appoints an investigator who verifies the claim's facts and authenticates the same.
  • Two sets of keys- Two sets of keys are required for claiming a stolen car. If one key is only presented, the insurance company presume that the other key was left in the vehicle at the time of theft.
  • Original RC copy- One needs to have the original RC Copy for making a theft claim.
  • Intimation to RTO authorities for RC cancellation - To avoid any fraudulent activity that may happen from your registered RC of your stolen car, the RTO needs to be kept informed for the same.
  • Insured statement- The victim has to give a detailed insured statement to the insurance company, including where the car was parked, the time and date on which the car was seen for the last time, stolen data, etc., the insurance company.

It is always advisable to go for a comprehensive motor insurance policy with sufficient add-on covers like depreciation waiver, Engine protection, consumables, etc., for 360-degree protection for damages caused to your vehicle due to accident, theft, or any natural disaster.

Total Loss claims

When the car is damaged beyond repair, it is considered a total loss or totalled car. The minimum criteria to qualify for a total loss is if the repair costs must exceed 75% of the Insured Declared Value in the policy. In such cases, Insurance companies settle the complete IDV mentioned in the insurance policy to the customer. The customer must bear the estimation and parking charges levied by the workshop in such Total loss claims.

*Please note: From a case-to-case basis, additional requirements can be sought by the insurance company; for instance, when the vehicle value is quite high, but the vehicle is quite old; In that case insurance company may seek any documentary proof to substantiate the fact that the vehicle was in the running in good condition before the theft. Such a requirement is called a running record.

Documents Needed for Car Insurance Claim

The documents needed for car insurance claims include:

  • Claim form
  • A copy of the Registration Certificate and the keys
  • Copy of the driving license
  • Original Policy
  • Original Copy of FIR (in case of theft)
  • Copies of Pan Card, Driving license, etc.
  • Any other documents that are related to the case and if there are any documents that the insurance company requires

How to Avoid Car Insurance Claim Rejection?

There are some things that you can avoid if you do not want your claim to be rejected. These include:

01

False Information

When filing the form, do not give false information like vehicle age, IDV, year of purchase, etc. Provide correct information so that you can get your claims settled.

02

Payment of Premiums

You must pay your premiums on time. And if you fail to pay the premium, you can use the grace period to pay the premium. It is important that you set a reminder to pay the premiums on time.

03

Existing Policies

When you purchase a new plan, it is important to disclose information about the existing policies. If you hide this information, your claim can get rejected. So, you must disclose this information to the insurance company, if required.

Bottom Line

The car insurance claim is easy if you have all the documents handy and know the steps you need to take. It is important to check different companies plans and claim settlement processes while buying a policy. Read all the terms and conditions mentioned in the policy to know all the inclusions and exclusions of the policy.