Insurance is a term we hear almost every day. From life insurance to health and travel, almost everything we do today is insured, meaning we have a safety net should anything happen.
Above all, the ongoing pandemic has shown us how important it is to be prepared for the unexpected and how insurance works to protect us and our possessions, including our cars. This means that it is necessary to know even the most essential things about our insurance policy. Here is a checklist of things you need to know when filling out insurance claims for your car.
What Is the Importance of Car Insurance?
Comprehensive car insurance offers you significant benefits and is extremely important if you are considering sound financial health and well-being. First of all, you cannot buy a car and drive it in India without some form of motor insurance.
Under the Motor Vehicles Act, 1988, it is mandatory for all vehicles in India to have third party insurance. Furthermore, instead of buying just the minimum amount of insurance or opting for the cheapest policy available, it would be beneficial to invest in a comprehensive car insurance policy that will truly protect you against all issues, including all man-made and natural disasters. Second, car insurance helps you recover from unpleasant events in many ways. These include:
- Offer financial benefits to survivors if an accident causes fatal injuries.
- It offers coverage against potential lawsuits, including legal fees, in the event of a lawsuit following an accident.
- Offer to cover bills related to vehicle repairs after damage caused by an accident.
- It offers coverage in case of any other man-made or natural calamities that cause damage to the car.
- Vehicle insurance also allows customers to take advantage of discounts on premiums for theft.
- Owning multiple policies with the same insurance provider also offers significant premium discounts.
- Comprehensive car insurance also allows you to extend cover to other people who drive your car with your permission, protecting you even when you’re not behind the wheel.
In the event that you make no claims at the end of your policy or tenure, you will be eligible for a non-renewal bonus if you meet certain pre-determined conditions.
What Does the Car Insurance Claims Process Involve?
The main purpose of buying an insurance policy is to ensure that in an emergency, the insurance money can help cover the related expenses. From this perspective, when it comes to insurance, the “moment of truth” is defined by the ease of the claims and settlement process.
Once you’ve decided to buy a car and subscribe to comprehensive insurance coverage, you may be worried about how to handle claims in the event of an accident or other unpleasant incident. Here’s a detailed breakdown of all the things you need to keep in mind when it comes to the car insurance claims process.
An insured event is first and foremost an official request from the policyholder to the insurance provider requesting compensation for the damage or loss incurred. Once the claim is processed and verified, the insurance provider will offer compensation that is consistent with the coverage guaranteed to the customer under the policy.
Types of Claims
You can make a claim in two ways
- cashless or
- refund.
If you have your car repaired at a partner car service after an accident, your insurance claim will be settled without cash. Insurance companies have ties to garage chains, so it’s best to find out which garages are partnered with your insurance company to get the best and fastest claim settlement possible.
In this scenario, the insurance provider makes direct payments to the partner garage, which is more convenient. If you get your car repaired at a garage that is not affiliated with your insurance provider, you will need to make payments and get bills.
Once you do this, you can get your repair bills reimbursed by your insurance provider. Claims for compensation can also be filed if you have third-party claims against you. If you pay directly to a third party, you may be reimbursed by your insurance provider depending on the terms and conditions of your insurance policy. Here are a number of questions that come up when you file a car insurance claim.
Documents required when reporting an insurance event
Depending on the Nature of Your Claim, You Will Need to Submit All or Some of the Following Documents:
- A copy of your car insurance policy
- A copy of your driver’s license
- A copy of your car’s registration certificate
- First Information Report (FIR)
- Damage and repair estimate
- medical report (only in case of physical injury)
- Any records of other expenses that are claimed
- Photos if available
- Steps to claim compensation for damage to passenger vehicles
When Submitting a Claim for Damage to Your Own Car, You Will Need to Proceed as Follows:
- First of all, you need to make sure that you have informed your company in advance before you send the car to the workshop for repair. Once you do so, the company will send an inspector to examine and verify the damage, making claims easier to pay. Both you and your insurance provider will receive copies of the examiner’s report, which provides evidence of the damage caused and an evaluation of the extent of the damage.
- Second, you need to complete and submit the designated application form to your insurance provider. This can be done both online and offline. However, you need to make sure that you don’t leave out any important details.
- Third, along with the form, you must submit the required documents, which usually include a copy of your driver’s license and car registration certificate. In case of theft or road accident, you must also submit a copy of the FIR filed with the police.
- Once the car is repaired and you receive a bill, you should submit a copy of the bill to accompany your claim.
- After examining and verifying all the documents, the insurance company will process the claim and reimburse you for the damages incurred.
- Steps to apply for third party damages
If You Were Involved in an Accident That Caused Injury to a Third Party or Damage to a Third Party’s Property, You Can Make a Claim as Follows:
- Notify your insurance company as soon as you receive notification of the claim. Along with this, also submit the vehicle registration certificate, driving license and FIR lodged with the police.
- After verifying the documents, the insurer will provide you with the services of a lawyer.
- Once the case goes to court, if you are found liable for damages, your insurer will make a payment on your behalf in accordance with the sum insured.
- Steps to File a Theft Claim
If Your Car Has Been Stolen, You Can Take the Following Steps to File a Claim with Your Insurance Provider:
First, file a police complaint and file an FIR as soon as possible. Once you do so, send a copy of the FIR to your insurance company. Along with this, also send a copy of the final police report along with the registration certificate.
After verifying the documents and completing all the formalities, the insurance company will reimburse you the insurance amount.
What to Do after a Car Accident?
- Accidents are unexpected and tend to confuse us. If you are involved in an accident, these things can help you make a claim more effectively:
- Immediately assess the damage to yourself and your car. Based on your condition, decide whether or not you need medical attention.
- Try to note the details of the other party in case another vehicle is involved in the accident. This will help identify the other side earlier.
- If possible, write down the contact details of witnesses in the area as they can corroborate your account.
- Inform your insurance company and ask for a surveyor.
- If you have access to a partner garage, you can now choose a cashless claim to make the process easier.
- Most insurers require claims to be made within 24 hours of the accident, so make sure you don’t delay.
- Have all required documents to hand to ensure your claim is processed as soon as possible.
- Bottom Line
- Owning a car is a joy, but also a responsibility. In the event of an accident, it is important to be completely prepared, and comprehensive car insurance is the only way to properly prepare. In addition, it is also important to be well versed in the claims process, as we often get worried after an accident and forget important details.
- Remember that it is best for your insurance company to make the process of paying out your claims easy, so take all possible steps to ensure that you can make a successful claim after some unexpected incident. As they say, it’s always better to be safe than sorry.
