What is an insurance claim?
Definition
An insurance claim is a request made to the insurance company for payment. A claim is made following an event that is covered by the policy. The claim typically is used to pay for the replacement or fixing property, or medical expenses resulting from injuries.
Definition and Examples of an Insurance Claim
A claim is essentially an inquiry made to your provider. A claim is an offer to your provider that you declare damage to your property and injuries or any other events that could trigger the payment. The only named risks in your policy may be claimed. Your policy covers and compensates you for damages or losses. A claim is a demand for that compensation after you pay your share of the costs when you have them.
If you are covered by collision insurance and get involved in an collision with another driver then you must submit a claim to the insurance company for your car to cover the costs of the incident.
What is an insurance claim? How does it Work?
Many factors dictate what your claims procedure will look like. It could involve mailing documents in person, calling a representative using the company’s application or any combination of these steps.
The “deductible” is the amount you have to pay before your provider pays. This is what can affect the way that claims are handled. Your provider will take care of the remaining portion of the cost. You pay your deductible. To determine your basic coverage, refer to the declaration page on your policy.
The way you handle claims will depend on the kind of claim you are making. It can be difficult to submit a claim on personal or home property. Meetings with adjusters are possible. It is possible to have to meet with them, obtain estimates approved, fix or replace objects as well as be required to attend meetings with them. It is possible that you are not involved in the process of obtaining health insurance.
Payments Depend on Your Policy
It is a good idea to inquire with your insurance provider regarding how they will pay for a claim before you start the claim process. You may know someone who received more than the amount for the same type of damage or loss. A lot of people believe it’s because the other party has a superior provider. This is not always true. When you buy your policy you have the option of choosing the options for coverage that you’d like. To get better coverage, the person who has received the most from their claims might have to pay more.
This is why it’s crucial to understand what expenses such as personal property, insurance, and contents are protected. Also, find out whether there are any limitations or limitations. Be sure to consider the specifics of the property you’re protecting. For example, if you are purchasing homeowners insurance and have additional buildings within your home, consider the extent to which your policy covers any claims relating to the buildings and their contents.
Motor Vehicle Insurance in India is mandatory as per the Motor Vehicle Act 1988. Motor vehicle insurance provides insurance that covers the risk of a third party arising out the use of motor vehicle and also for protecting against the possibility of damage caused to the vehicle. Indian citizens are not concerned regarding Life Insurance Plan nor Medical Insurance plan, however they are more concerned about Motor Vehicle Insurance either they are driving a Scooter , a Bike or a Car or a truck. If somebody gets injured in an accident that is not covered by insurance, it is treated as criminal activity.
Today, everybody has their own vehicle, roads are jam pack with vehicles, the risk of accidents is very high as a result, insurance companies for motor vehicles are increasing every day, and claims are also going up. Yet, often, the policyholders do not know exactly what they should do to claim their Car Insurance Claim Procedure. Here we are explaining the procedure how to claim on your car insurance policy. This will help you tremendously.
How do you claim your Car Insurance Claim
This will make it easy to comprehend the process of a particular situation.
Claim compensation for your own damage
These steps will help you to file an claim for damages should your car is involved an accident.
Inform the insurance service provider
Before you send your car to the garage, it is necessary to first inform the insurer. The forms are available on insurance service provider’s websites. The majority of insurers adhere to strict guidelines, and it is included in the policy document.
Lodge FIR
In some instances, First Information Report (FIR) is required, so you should submit an FIR to the closest police station to be on the safety of the community. While it isn’t necessary for claim settlements, it is advisable to lodge an FIR. It is all dependent on the specific situation.
Assess the extent of damage
once you inform to insurance service provider the insurance company, they’ll assign an inspector to evaluate the extent of damage to your vehicle. The surveyor will write an assessment report and then send it to your insurance provider. A copy of the report will be sent to you. Once that is done then you are able to take your vehicle to the nearest garage for repairs.
Claim settlement
When the survey report has been received by insurance, the company will review the claim and approve the garage. The garage will need to give an estimate of the cost and the timeline for repairs. The insurance company will stay in touch with the network garage for an overview of the extent of the damage and how the repairs are going on.
When the project is completed, you’ll need to collect the bills and other paperwork from the garage, and then send them to the surveyor. Surveyor will forward the information to insurance company.
The insurance provider will pay you back for your costs if all documentation has been submitted. You should also keep in mind that the policy will define the obligatory deductible and variable-deductible components. Once your claim has been settled and your car is OK then you can take the road again.
Third-party insurance claim for cars: -If you are liable for an accident in which a third-party suffers injury or property damage and property is damaged, here’s what you need to do:
Contact the insurance company
In the first place, you must let your service provider know immediately. Don’t make financial commitments to any third party.
Lodge FIR
Lodge FIR at the closest police station. You should keep an original copy of the FIR in case of information as well.
The document outlines the policy for sharing
It is mandatory to provide a copy of your car insurance policy with the third-party so that they can raise the claim.
Claim in Motor Tribunal
Third-party liability claims are brought at the Motor Accident Claims Tribunal in accordance to the Motor Vehicles Act 1988. The claim can be raised by the third party at the tribunal nearest to their home or at your own.
After you have received all the documentation The insurance provider will review the documents and evaluate the situation. If they find it satisfactory, you’ll be given a lawyer selected by them.
If the court requires you to pay the damage to the third party later, the insurance service company will directly make the payment to the third party. It is recommended to attempt to resolve the matter without the help of the tribunal.
Claim for the theft
Follow the steps listed below if you suspect that your car was stolen.
Lodge FIR
For future reference, lodge an FIR at your nearest station of police and also keep a copy.
Contact an insurance provider
Inform your service provider as soon as possible with a copy FIR.
After you have received your final report from police station, take copies of it and give it to the insurance company. Insurance company assigns an investigator. Investigators will write the report and then submit it the report to the insurance company. After that you can submit the RC book of your car that was stolen to the insurance company.
Submit duplicate keys to the vehicle as well as a subrogation note. Additionally, you will need to present a notarized statement of indemnity on a stamped paper as well. When all the formalities have been completed, the insurance company will issue the claim.
It is very important for us to know about the requirements of a car insurance claim procedure otherwise lots of people pay out of their pockets due to the absence of this information. The customer service system of all insurance companies is top-quality and the staff are competent and co-operative. It is essential to communicate with your insurer whenever possible.
FAQs regarding Car Insurance Claim Settlement
What happens to a claim in the event of theft of the car insured?
In the case of theft of a vehicle , a claim can be made by following the steps listed below:
- Step 1: Register an FIR (First Information Report) at the nearest police station and notify your insurance company. The police will follow the vehicle for up to 90 days. After that the police will issue you a report that is not traceable.
- Step 2. If the police are unable to locate the vehicle insured within the time frame specified, then a court of law will issue a Non Objection Certificate (NOC).
- Step 3 After issuing an NOC, the insurer conducts an investigation to locate the vehicle. If the insurer cannot locate the vehicle then the process of settlement is initiated. Step 4: If it is a case of theft i.e. After the deduction of any applicable deductibles the insurer will give you the IDV of your car.
How do I find the nearest garage affiliated with my insurance company?
For locating the nearest garage authorised by your insurance company or insurer, call and enquire on the customer service number of the insurer or look for the same on the insurer’s official site. The option is generally present in the claims section on the site, under the heading “list of network garages”.
What documents should I submit?
Policyholders are required to submit their documents to the surveyor whenever the vehicle is at the garage for repairs.
What is the role of the surveyor in the settlement process?
If a claim is made by any policyholder , the insurance company will send a surveyor to conduct an inspection in order to assess out and understand the extent of damage sustained by your vehicle. The surveyor is required to submit an assessment of the amount of damage to the insurance company in order to process the claim settlement.
Does an individual have the right to file a claim even when the policy of insurance expired just a few days prior to the incident?
It is not possible to file a claim for car insurance if your policy is expired. It is therefore crucial to renew the policy in time as no claim will be filed under the policy that is expired.
What are the documents required to file an claim? What documents are required to register
You will need to have an official copy of your FIR (in the event in the event of an accident) and ID proof the proof of address and policy information for the purpose of registering a claim.
Are natural calamities covered under the insurance of your car?
Yes natural disasters like flood or earthquake, hurricane and cyclones. Both Comprehensive and Standalone Own Damage car insurance plans cover them.
What is the significance of No Claim Bonus?
The No Claim Bonus an incentive offered by the insurance company to the policy holder at the time of renewing the insurance policy in exchange for not making a claim during the duration of the insurance policy.
When is a claim resolved in a cashless way?
When the repair is completed in a network garage owned by the insurance company, a claim can be paid in cash.
Additional Resource:
https://www.insurancedekho.com/car-insurance
https://www.moneysupermarket.com/car-insurance/
https://www.allianz.com.au/car-insurance.html