Motor claims: An indispensable weapon

Manju Dhake Sushil Insurance Brokers

A Car Insurance plan is not just mandatory by law but is an excellent means of caring for your car as well. In case your car meets with an accident and incurs severe damages, you could be paying a fortune to meet the servicing charges. But with Car Insurance policy you avail the much needed support to cover the expenses. 

There are also several other reasons why you should get car insurance, like having car insurance protects the investment you have made in your automobile, it protects you from liability lawsuits, it also covers damages to your car, and it gives you peace of mind, just to name a few. It’s a single plan that relieves you from all your motor insurance related worries in one go.

I hope the earlier series has been useful in providing with the basic knowledge on Motor Insurance, its coverage’s, the exclusions, basis of sum insured, etc. which is explained in the above paragraph.

Let us know equip ourselves with few things on Motor Claims and its procedure, which is very imperative for one to know and act as an indispensable weapon at the time of Damage.

Also read: Here's your motor insurance cheatsheet  

ClaimsCar insurance is an integral part of every car owner’s life in India. It is crucial to buy one, in order to stay away from legal implications and to enjoy the benefits offered. However, this is only possible if you get claim approval when needed.

Unfortunately, many insurance buyers don’t know the procedure of making a claim. Not understanding the terms and conditions, related to making a claim can make you face rejection. There are several things you require to take into account before making a claim. First and foremost, you should understand about car insurance claims in detail.

Claim can be defined as a legal statement made to gain the following: • Money as per the terms of insurance • Enforcement of a right against third party as stated in the policy

The legal document that carries ‘claim’ is often referred to as a ‘Statement of Claim’. It is often in the form of a communication expressed in amount of cash which the party requires to pay or reimburse.

Consumers may face many issues when filing ‘statement of claim’. Although the process of filing a claim is straight forward, it is vital to carry it out in a proper manner. In the event of failure to do so, the claim may be declared null and void.

Process for car insurance claims:

Step 1: Notify the Company First, you should call your insurance company or representative at the earliest. Make sure you follow this step regardless of how far you are from home. It is crucial to inform the insurance company about the accident.

Step 2: Get Guidance You should get adept guidance on how to proceed with claims process from your insurance provider. Know about the forms and important documents required for the same. You can get this information on car insurance online website.

Step 3: Documentation You may require a "proof of loss" form in conjunction with documents related to your claim such as bills for car repair, medical bills etc. Make sure you supply all of the necessary info to the insurer in order to process claim.

Step 4: Expenses Keep records of all of your expenses incurred due to an accident.

Step 5: Keep Records Make double sure you keep records of paperwork intact. The documentation may be required for reference later.

Process of Registering a Car Insurance ClaimStep 1: Make sure you note the number of the other vehicle involved in the accident.

Step 2: List out names and contact details of witnesses.

Step 3: Get in touch with the insurance provider’s 24x7 call centre. Also keep claim number / reference number handy.

Step 4: Contact call centre representative to get the details of documents needed for processing of claim. You should also provide the details of preferred garage, where the facility for cashless repair is available.

Step 5: File an FIR (First Information Report) at the nearest police station in the event of theft, damage to property, bodily injury, and other major damages.

It is imperative to know certain terms used in Motor Insurance  which are explained below:Important Terms:

• NCB (No Claim Bonus): No claim bonus is a special discount given for every claim-free year. This therefore reduces the premium in succeeding years. It can be accumulated over a period of insurance. NCB starts with 20% and goes up to 50%. In case of claim, NCB becomes nil. The NCB accumulated on an old car can be transferred on a new car.
• IDV: IDV means Insured's Declared Value. It is the value of the vehicle, which is arrived at by adjusting the current manufacturer's listed selling price of the vehicle with depreciation percentage as prescribed in the Tariff.
• Voluntary deductible: Deductible is the portion of the claim that an individual has to bare and is not paid by the insurance company. Voluntary deductible is the amount the insured is ready to bare in case a claim is made. It is an out of pocket expense. Higher discounts on premiums are given to individuals for choosing higher deductibles.
• Total loss: When damage is caused to an automobile to such a great extent, that the repair costs are higher than the depreciated value of the vehicle or even if it is stolen, then it is termed as total loss.
• Partial loss: The repairable losses occurred due to an insurable cause are known as partial losses. Thefts of certain parts or accessories are also termed as partial loss. Accessories are covered only in private cars.

The author is a principal officer at Sushil Insurance Brokers.