Car Insurance Claim Process

Car insurance claim settlement refers to the process by which the insured party files an insurance claim with the insurer, seeking compensation for damages to their car owing to an accident. When you purchase a car, you must necessarily opt for car insurance and pay premiums routinely. Therefore, it is your right to seek compensation in the event of an accident. You can undertake the car insurance claim process online, and your bills will be reimbursed.

The claims percentage settled by an insurer with respect to the total number of claims it receives in a financial year is known as the car insurance claim settlement ratio.

Knowing just the number of claims settled by an insurer in a particular financial year may not be useful. Hence, a ratio which compares this with the overall number of claims received by the insurer helps in providing a clearer picture of their performance.

The car insurance claim settlement ratio is always measured in percentage as a metric. Let’s take an example. Suppose an insurance company has a claim settlement ratio of 97%. It implies that they have managed to pay 97 out of 100 claims raised by their policyholders. The remaining 3% represents the rejected or pending claims.

There may be several reasons for an insurance company to reject the claim requests. These may be such as not making honest disclosures or providing misinformation at the time of the filing of the claim.

When it comes to the car insurance claim process, there are two primary claims that you can file:

Cashless Claims

If you already have car insurance, you can opt for a cashless claim car insurance. In the event of such a claim, all you are required to do is take your vehicle to the nearest registered garage in your vicinity. The insurance company will then directly settle all your bills pertaining to the repair of your car.

Reimbursement Claims

If you wish to take your vehicle to a garage of your choosing, or you do not possess the cashless claim facility, you can opt for a reimbursement claim. Once you get your vehicle repaired, you must submit all pertinent bills to your insurer, who will then proceed to reimburse you for the entire amount.

While a car insurance claim settlement ratio of more than 80% is considered to be good, a claim settlement ratio of more than 90% is ideal. Most car owners end up choosing an insurance policy by an insurer who shows a claim settlement ratio of 90% or more. 

An insurance company’s CSR  is generally mentioned on their official website. You can also check the IDRA’s annual report for the same. The insurer’s claim filing process which is easy, quick, and simple will make the entire process seamless.

When opting for a cashless claim, here are the steps to claim car insurance:

Step 1: Start by informing your insurer about the claim. You can do so online or by contacting their customer care team.

Step 2: A surveyor from the insurance company will assess the damage and make a report.

Step 3: Once the insurance company assesses the report, they will then sanction repairs in the network garage.

Step 4: You will have to submit a claim form, and the insurance company will then settle your bill with the network garage.

While opting for a reimbursement claim, here are the steps to claim car insurance:

Step 1: Notify your insurance company about the claim. To do so, you can visit their website or call their customer care team.

Step 2: In the case of an accident, make sure you file an FIR.

Step 3: Your vehicle will be towed to the nearest garage, and a professional will assess the damage.

Step 4: Once your car has been repaired, make sure to retain all bills.

Step 5: When submitting your claim form, you must also submit all pertinent bills. You will then be reimbursed for your expenses after you pay for the associated deductibles.

If you are claiming insurance for car damage, you must furnish the following documents:

• Details of your vehicle

• Vehicle insurance policy

• All insurance-related information

• Details of the accident

• An FIR report, if necessary

• Original bills and receipts

Your car insurance claim can potentially be rejected for the following reasons:

• If you are found guilty of driving without a valid driving licence

• If your vehicle is damaged due to reasons outside the policy’s jurisdictions

• If you are found guilty of driving under the influence of alcohol or other substances

• If you furnish incorrect information while filing the claim

• If you repair your vehicle without first informing the insurer

When claiming insurance for car damage, the following tips can come in handy:

• In the case of minor damages, pay for the expenses yourself, and avoid raising a claim to keep your NCB intact.

• Ensure that you retain all original documents.

• Make sure to regularly follow up with the insurer.

Accidents can occur due to various reasons, either due to your fault, or a third party’s fault. In the event of an accident, here is how to file a car insurance claim:

• Ensure you inform the insurer of the date – mentioning the exact date, time, and location of the accident.

• Ensure that you file an FIR with the police.

• The insurance company will send a surveyor to assess the damage to your vehicle, who will make a report of the same.

• If you have filed a cashless claim, your car will be repaired by the nearest network garage, and the insurance company will foot the bill.

• If you have filed a reimbursement claim, once you have repaired your car, the insurance company will reimburse your bills.

If you get injured, or your car gets damaged due to a third party, you must immediately notify your insurer and also file an FIR report. To file a car insurance claim in such a situation, you must necessarily furnish the following documents:

• Duly signed claim form

• Copy of your car’s registration

• Copy of your policy

• Copy of the FIR report

• Copy of your driving licence

If in case your vehicle has been stolen, you must immediately file an FIR with the police. Next, you must proceed by informing your insurer of the same. The police will try locating your car, and if they fail to do so, they will create a ‘No Trace Report’. In this case, the insurer will also request you to submit your car keys, a copy of the FIR report, and the details of your vehicle’s registration. Following this, you will be duly compensated based on your car’s IDV (Insured Declared Value).

A surveyor plays a crucial role in insurance claims by assessing damage to insured vehicles and ensuring a fair and accurate claims process. They inspect the damage, document its cause and extent, estimate repair or replacement costs, and offer guidance to the policyholder for loss mitigation.

Surveyors can also aid policyholders in completing claim forms and obtaining necessary documents, especially if they are unfamiliar with the process or face document-related challenges. Moreover, surveyors act as intermediaries between policyholders and insurance companies to resolve claim disputes by providing unbiased damage and cost assessments.