Car Insurance Claim Procedure : How Does It Work?

Car insurance offers peace of mind, ensuring protection against unforeseen damages. But do you know Insurance providers handle all claims differently? Their claim process varies depending on your insurance type and the nature of the damages. Moreover, the insurer may choose to reimburse you for the expenses or settle the bill directly through a cashless claim.So, how do you claim car insurance? You don’t want to be scrambling for it in the aftermath of an incident. Let’s demystify the intricacies of car insurance claims and help you navigate the steps to claim car insurance.

Understand the Car Insurance claim procedure:

There are two ways to file a car insurance claim:

1. Cashless claim: In cashless claims, the insurance company directly pays the garage to settle the bill for repairs. You don’t have to pay for expenses out of your own pocket besides the deductibles.
2. Reimbursement claim: In this type of claim, you bear the cost of repairs upfront. However, the insurer reimburses you when you file a claim after accounting for the deductibles.

Steps to File a Car Insurance Claim 

Here are the steps to claim car insurance in different scenarios:

# Claim Process for Own Damage

Here’s how you can claim car insurance for damages your car incurs in an accident:

Step 1. Inform the insurer about the accident and damages before taking your car to a garage. The insurer will then send an examiner to inspect your car and assess the extent of damage. 

Step 2. In case of a major accident, you must also file an FIR with the police. 

Step 3. Fill out the claim form and share it with the insurer along with other necessary documents, like an FIR copy, evidence of damage, and inspection report. 

Step 4. Now, you have two options: take your car to a workshop of your choice or request the insurer to get your vehicle repaired at a network garage.

Going to a network garage will make you eligible for a cashless claim. The insurance provider will send your car to a garage and pay for repairs.

However, if you get the vehicle repaired yourself, you must pay the garage upfront. The insurer will reimburse you for the expenses after you provide them with the invoice.

# Claim Process for Third-Party Damages

If your car is involved in an accident that results in injuries to a third party or their vehicle, the victim must file a claim in the Motor Accident Claims Tribunal demanding compensation from you for damages. That’s where your third-party car insurance will come in handy, and here’s how you can utilize it:

Step 1. First and foremost, inform your insurance provider about the incident and wait for the third party to register an FIR and send you a legal notice.

Step 2. Once you receive the legal notice and a copy of FIR documents from the third party, share them with your insurer. Also, share copies of your driving license and car’s RC.

Step 3. The insurer will review the documents and evaluate the incident and damages to verify the legitimacy of the claim. 

Step 4. If the claim is covered by your third-party insurance policy, the insurer will appoint a lawyer for you.

Step 5. Next, the tribunal court will hear the case. If it finds you liable, it will order you to compensate the third party for damages. 

Step 6. After the court’s judgement, your insurance provider will directly pay the amount to a third party on your behalf.

# Claim Process for Stolen Vehicle

In the case of a stolen car, the claim process involves the following steps:

Step 1. Lodge an FIR with the local police immediately.

Step 2. You’ll receive a copy of the FIR, which you must share with your insurance provider. 

Step 3. Police will investigate, and if they can’t find your vehicle, they’ll provide a final report stamped by the court that the car is non-traceable. 

Step 4. Share the final police report with the insurance provider, who will then hire an investigator to investigate further. 

Step 5. After the final inquiry, the insurance provider will request you to provide your stolen car’s RC and duplicate keys, a subrogation letter, and a notarised indemnity on stamp paper.

Step 6. Finally, the insurer will disburse the claim amount equal to your car’s current Insured Declared Value, i.e., the car’s original price minus the depreciation.

Most Common Reasons for Car Insurance Claim Rejection

There are certain situations which can lead to rejection of your car insurance claim. These may include:

1. Withholding information or providing false details about the accident from the authorities 

             and the insurer.

2. Having an expired insurance policy.
3. Not paying the premium for your insurance.
4. Driving without a valid driver’s license.
5. Driving under the influence.
6. Committing traffic violations.
7. Having illegal modifications and accessories installed on your vehicle.
8. Providing Incorrect Information. Ex- Incorrect NCB declaration

Key Takeaways

Understanding the car insurance claim process can significantly affect how effectively and swiftly you get to navigate the aftermath of an accident. The process depends on the insurance type, the extent of the damages, and your insurer’s policies. So, always read the terms and conditions carefully when getting car insurance. You may also consider platforms like PhonePe to simplify and streamline your car insurance purchase experience.