Friday, 31 May 2013

Things to Know About Motor Insurance Claims Process

As per Motor vehicle act, 1988, it is mandatory for every vehicle-owner to get his vehicle insured or else he can be penalized. Getting your vehicle insured is mandatory and it is also equally important to understand the motor insurance claim process so in the event of any accident you can get your claim fast and smoothly.
For what kind of losses one can file a claim under a motor insurance policy?
Third party losses: If some one else has got bodily injuries by your insured vehicle or your vehicle has damaged some one's property, then it is considered as third party loss. Such losses are covered by third-party cover.
Damage to your own vehicle: If your vehicle is damaged in an accident or it is stolen then such losses are covered under own damage cover. This cover is optional and you can get this cover only if you have comprehensive motor insurance policy.
What are the things that one should do immediately after an accident occurs?
Third Party claim: In the case of third party claim, one should immediately inform the police and insurance company about the accident. And if you're the victim then you should obtain the insurance detail of that vehicle and make intimation to the insurer of that vehicle.
Theft claim: In case of theft claim you should immediately inform the police and insurance company and along with it you should also inform it to transport department.
Own damage claim: In the event of an own damage claim i.e. If your own insured vehicle gets damaged in an accident, you should inform the police as well as the insurance company so that it can send a surveyor to assess the loss.
Do not move the vehicle from the accident spot without the permission of the police and insurance company.
Do insurance companies offer cashless facility?
Yes, insurance companies offer cashless facility, provided you go to there network garages. Going to your insurer's network garage is also hassle free option as you don't have to take the hassle of documentation.
But if you don't want to go to network garages of your insurer and want to go to your preferred garage then you also have the option of reimbursement. After getting your vehicle repaired you can get your expenses reimbursed by insurance company, for that you have to submit bills along with all other required documents.
What are the documents required while filing a claim?
Though there may be specific document requirement by specific insurance companies but in general all insurers require some documents such as:-
For accident claims
  • Claim form duly filled
  • Copy of Registration Certificate (RC)
  • Copy of driving license of the person who was driving the vehicle at the time of the accident
  • Photo copy of first two pages of policy document
  • Copy of First Information Report (FIR)
  • Original repair invoice, payment receipt while for cashless garage only repair invoice
Theft claim
  • Claim form duly filled
  • Copy of Registration Certificate (RC)
  • All the original keys of the vehicle
  • Copy of driving license
  • Copy of first two pages of policy document
  • Copy of First Information Report (FIR)
  • RTO transfer papers
  • Final report or No Trace report (if police does not able to find your vehicle within 90 days of the theft then it issues a undertaking that yet they have to find your vehicle)
For third party claim
  • Duly filled claim form
  • Copy of First Information Report (FIR)
  • Copy of driving license
  • Copy of first two pages of policy document
  • Copy of Registration Certificate (RC)
Does policyholder have to bear any expenses on his own?
Yes, policyholder has to bear certain cost on their own:-
  • Amount of depreciation
  • Reasonable value of salvage (if not repaired at the network garage of insurer)
  • Voluntarily and compulsory deductibles
  • Any compulsorily excess levied by the insurer
What will happen if an accident takes place outside the city where policy was issued?
A motor insurance policy remains in force throughout the country. Hence, in such circumstances also you can file a claim.
Will filing a claim will affect renewal?
Yes, if you file a claim then you will lose the entire no-claim bonus that you have accrued.
Should claim be filed for minor accident as well?
It is not advisable to file a claim for small loss because every motor insurance policy has some deductibles (deductible is the part of claim that you need to pay on your own before insurer pay your claim). Hence, before filing a claim for a small amount, first assess what amount you have to pay as deductible and how much no-claim bonus you can get if you don't make a claim and only if it is worth to file a claim then make a claim.
It is advisable that as soon as you receive the policy document, go through the procedure and documentation requirements of the claim thoroughly, rather than to wait for the claim to arise.