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Car Insurance Claim Process

Car insurance is a must for every person who has a car. It protects you financially and compensates you if your car is stolen, damaged, or in need of costly repairs. Car insurance has an expiration date like any other policy and must be renewed regularly. In India, it is mandatory to insure your car as per the Motor Vehicles Act 1988. Each year, as the number of traffic accidents increases, so does the number of car insurance claims. However, many people still do not know how to file a claim for car insurance after an accident. Here is a step-by-step guide that walks you through the process of filing a car insurance claim.

What is Car Insurance Claim?

A car insurance claim is a process in which an insured seeks compensation from his insurance company for damages caused to his car due to an accident. It also occurs when the insured asks the insurance company to represent or intervene on its behalf in case the insured is liable for unintended losses to a third party. After paying the car insurance premium, the policyholder has the right to file a claim if he/she is involved in an accident.

Types of Car Insurance Claims

There are two types of the claim process in car insurance plans i.e. Cashless claim process and the Reimbursement claim process.

  • Cashless Claim Process

    In the cashless claim process, you do not have to pay any upfront amount to get your car repaired at a network garage. On behalf of the policyholder, the car insurance company settles the claims with the garage. But, policyholders need to check whether the damage is covered under the coverage benefits of the policy.

  • Reimbursement Claim Process

    Under the reimbursement claim process, you will need to pay the cost of repairing the car at the garage. Then later, the car insurance company reimburses you the total amount through NEFT within 8-10 days.

What is Covered Under Car Insurance?

Own car damage and third-party liability are the two main components that are covered under the car insurance plans.

Coverage under own Damage

  • Loss of Vehicle
  • Accident
  • Theft
  • Explosion
  • Fire
  • Self-ignition
  • Natural calamities
  • Act of terrorism
  • Riot
  • Lightning

Coverage Under Third Party Liability

  • Damages to your car caused by someone else ca
  • Injuries to someone caused because your car hits them
  • Any damage to third-party property

Car insurance also offers a personal accident cover to the policyholder in which the insurer pays a lump sum amount to the insured in case of the death of the owner due to an accident.

How To Claim Car Insurance in Case of Your Car Damage?

If you have damaged your car in an accident, you can file a claim for damages with your car insurance companies:

  • Inform your car insurance company about the damage to your car immediately.
  • Inform the police and file an FIR (First Investigation Report) if your car has caused multiple impacts, bodily injuries, and casualties to anyone in the accident.
  • You can visit the car insurance company’s website or reach out to the InsureNow, brand name under Advance Life Insurance Brokers Pvt. Ltd for claim support to find the nearest cashless garage. The car insurance company takes the car to one such network garage. After the car was taken to the garage, repairs were estimated after the survey began.
  • A surveyor from an insurance company visits and discusses the estimate with the garage.
  • Once the surveyor finalizes the estimate and gives his approval, the garage will proceed with repairs accordingly.
  • The duration of claim settlement is decided by the car insurance company and it varies from company to company.
  • The policyholder will have to pay some repair cost out of his pocket and it depends on the policy chosen by the policyholder.

How To Claim Car Insurance in Case of Theft of Your Car?

In the unfortunate event of a car being stolen, below are the steps to file a claim under car insurance:

  • Inform the Police Authority

    You have to file a complaint at your nearest police station or where the incident took place.

  • Intimate the Insurance Company about the Incident

    After informing the police authorities, you have to inform the insurance company about the incident.

  • Investigation

    The car insurance company appoints an investigator who verifies and certifies the facts of the claim.

  • Submit the Keys

    Submit the duplicate keys of the car along with the subrogation letter.

  • Original RC Document

    You need to submit the original RC document to the car insurance company for making a theft claim.

  • Inform the RTO Authority

    To avoid any fraudulent activity from your stolen car, you need to inform the RTO authority about the car theft.

  • Policyholder Statement

    The policyholder needs to give a detailed statement to the car 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.

  • Claim disbursement

    Once all the formalities are completed, the car insurance company pays the claim.

How To Claim Car Insurance in Case of Third Party Claim?

Below mentioned is the car insurance claim process for filing a third-party claim:

  • Do not speak directly to a third party who sent you a legal letter notice for a claim before contacting your car insurance company. Also, talk to your car insurance company before making any financial commitments or settlements out of court.
  • Submit a xerox copy of the legal notice along with the RC books, driving license, and a copy of FIR to the car insurance company.
  • The car insurance company verifies the documents and appoints a lawyer for your case.
  • If the court orders you to pay damages to a third party, the car insurance company will pay the amount directly to the third party on your behalf.

How to File a Cashless Car Insurance Claim?

Below-mentioned are the steps to file a cashless car insurance claim:

  • Registration

    Register your cashless claim on the car insurance company’s toll-free number or through its official website, mobile app, or e-mail.

  • Registration Number

    The insurance company will provide you with a claim registration number that can be used for future communications and future claims.

  • Network garage

    Take the damaged car to any of the authorized network garages of the insurance provider for repairs.

  • Document Submission

    Submit all the required documents to the car insurance company.

  • Claim Settlement

    The car insurance company directly settles the bill with the garage.

How to File a Reimbursement Car Insurance Claim?

Follow the below-mentioned steps to make a reimbursement car insurance claim:

  • Registration

    Register your reimbursement claim by contacting your car insurance company through its website, email address, or toll-free number.

  • Registration Number

    The policyholder will receive a claim registration number from the insurance company that can be used for future claims and communications.

  • Car Repair

    Take your damaged car to any nearest garage for repairs.

  • Document Submission

    Submit all the necessary documents to the car insurance company.

  • Claim Settlement

    The car insurance company will confirm the liability and initiate the claim settlement process.

Documents Required For Car Insurance Claim

The following is the list of documents that you need to submit for different types of car insurance claims:

Third Party Car Insurance Claim

  • Duly filled and signed claim form.
  • Xerox copy of FIR.
  • Xerox copy of Driving License.
  • Xerox copy of the car insurance policy document.
  • Xerox copy of RC.

Car Theft Claim

  • Xerox copy of the registration certificate.
  • Xerox copy of the driving license.
  • Xerox copy of the FIR.
  • Xerox copy of the first two pages of the car insurance policy document.
  • Original letter addressed to the RTO.

The police will try to find your vehicle. If the vehicle is not found even after 6 months, the police will issue a ‘Non-Traceable Report’, completing the process of transferring the RC of your lost car to the Car Insurance Company, and a subrogation letter will also be submitted. The claim will be settled after the insurance company gets all the required documents.

Car Accident Claim

  • Duly filled and signed claim form.
  • Xerox copy of your car’s RC.
  • Xerox copy of your Driving License.
  • Xerox copy of your policy document.
  • Xerox copy of the FIR.
  • Original bills, and payment receipt.

Reasons For Car Insurance Claim Rejection

Following are the situations in which your car insurance claims get rejected:

  • Second-hand car with no insurance
  • No valid license
  • Drink and Drive
  • Delay in filing claim
  • Unregistered CNG Kit
  • Consequential damages
  • Exceeding limitation of use of the car
Conclusion : You can file a car insurance claim only if you have a car insurance plan. Accidents can happen at any time and we have to be prepared for them. No matter how carefully you drive your car, you can still have an accident. Hence, you should buy a car insurance plan at the earliest to comply with the law and protect yourself financially in case of emergencies like accidents, thefts, or other road calamities.

Car Insurance Claim FAQ’s

Though they are already mentioned in the policy, here is a handy list for your convenience:

  • A copy of the insurance policy
  • Driving license
  • Claim form appropriately filled (a copy of the same can be kept with the policyholder for future reference)
  • Registration Certificate along with the original for verification
  • Pollution Certificate Copy
  • Fitness Certificate of the vehicle
  • In case of NCB availed in the policy ‘NCB confirmation’ from the previous insurer
  • Repair estimate (given by insurance company)
  • Spot photos & intimation to police authorities if the vehicle has sustained multiple impacts or involved bodily injury

*Other than the above mentioned from case-to-case basis, the requirement may vary

This depends upon the insurer to insurer. Most insurers allow you multiple claims within a year, but you have to read the insurance document provided to you for the exact information.

Under the cashless claim facility, you do not have to pay for the repairs. The insurance company will pay it directly to the garage. But you need to remember that this facility can only be availed if you go to one of the network garages of the insurance company.

NCB is the discount in premium that you can get if you do not make any claims during the motor insurance policy term.

Yes, your car insurance claim can be rejected in some circumstances, which include:

  • If the car is repaired before making a claim
  • If any modifications are done to the car and not intimated to the Insurance Company and RTO at the same time
  • In case the car owner has failed to complete the transfer formalities to another owner/ entity
  • If the insurance company is misled/ not informed about the purpose of using a car

There is no specific period that the insurance company takes to settle the claims. Different companies follow a different claim settlement period. Moreover, this also depends upon the complexity of the claim.

You need to buy a car insurance policy because third-party liability insurance is compulsory under the Motor Vehicles Act, 1988. Without a valid insurance policy, you cannot drive your car on the roads in India.

Moreover, the car insurance plan acts as a safety net against financial losses that may occur in case of accident, theft, or unforeseen natural/manmade calamities.

Any tangible damage caused to a vehicle due to natural calamity like- flood, tempest, cyclone, earthquake, hurricane etc., are covered under the comprehensive insurance policy.

No, the car insurance policy does not cover passengers. But you can purchase passenger cover as an add-on cover offered by the insurance companies in India. This cover provides personal accident cover to unnamed passengers travelling in the car.

Yes, a four-wheeler insurance policy issued online is valid under the motor laws in the country. But the policy has to be issued by a company that is registered with IRDAI.

Disclaimer: The information published in this article is for the reader′s reference only. The content of this information is to provide an overview of your motor insurance needs and should not be relied upon for personal, medical, legal, or financial decisions and you should consult an appropriate professional for specific advice The makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.