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Claiming Car Insurance For The First Time? Read This Helpful Guide

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A car owner takes insurance coverage to protect him or her from the risk of unforeseen liabilities. Under the Motor Vehicles Act, no car can be driven on the Indian roads without a third party insurance coverage. Any violation of the provision of the law will attract imposition of steep fines on the car owner.

 

So, it is prudent and plain common sense for all vehicle owners in India to have the appropriate insurance coverage for their cars. There are two types of insurance coverages for them to choose from.

 

  • The compulsory third party insurance coverage
  • The comprehensive insurance coverage

 

Difference Between Third Party & Comprehensive Insurance Coverage

 

The third party insurance coverage provides coverage of the financial liabilities due to a road accident which results in injury to the victim or death. It also includes financial coverage of third party loss or damages to the property due to an accident.

 

The comprehensive insurance coverage includes third party insurance claims. It also offers financial protection from various other risk factors which can happen while driving on Indian roads.

 

How to Settle A Third Party Liability Claim?

 

A car owner has had an accident due to which a third party compensation claim has been raised against him or her. To settle such a claim the owner must check the following process has been undertaken by the claimant.

 

  • The claimant of the third party compensation must first register a First Information Report (FIR) to the police station detailing the incident
  • The car owner must give a copy of his or her car insurance policy document to the claimant to facilitate the process
  • The claimant has to submit his or her claim to Motor Accident Claims Tribunal (MACT) as per the provisions of the Motor Vehicles Act. It can be done by the victim or his or her dependents
  • The Tribunal after weighing the statements of the witnesses to the accident and weighing other evidence will pass its verdict. The settlement may take time

 

If the above steps have not been followed, there is a high probability that the claim will fall through.

 

How to Settle Other Types of Car Insurance Claims?

 

If the car owner has damaged his own car by an accident, he or she must undertake the following steps to settle the car insurance claim in a hassle free manner by the insurance company.

 

  • Inform the insurance company about the accident immediately
  • It is better to lodge an FIR with the Police Station where the accident has taken place. Although this action is not mandatory but may act as a facilitator in completing the claim procedure
  • Once the insurance company has the information about the accident, they will then send an expert for inspection of the car. If it is damaged badly then tow the car to the nearest garage in the locality
  • Submit your claim form to the insurance company at the earliest
  • After inspection of the damage to the car is done, the inspector will submit a survey report to the insurance company. The report will reveal the assessment of the damage of the car
  • After verifying your claim request and consideration of the survey report by the inspector, the insurance company will determine the claim to be settled in your favour. Accordingly, a work order for repair of the car will be issued to the service centre of the company

 

Generally, these are the broad steps to be executed by the car owner to settle any form of a car insurance claim made to the insurance company.

 

Partial Settlement of Claims

 

Sometimes the insurance company does not allow full settlement of the car insurance claim made by the car owner. The reasons are broadly stated below.

 

  • The assessment of the damages made by the car owner in the claim form is not acceptable to the inspector after verification of the damage suffered by the car in an accident
  • Another factor may be the type of coverage of the policy, nature of claims made and the terms and conditions of the policy document does not permit the insurance company to accept the claim in totality

 

In such a scenario, the insurance company can approve a partial settlement of the claim of the car owner.

 

Reasons for Rejection of Car Insurance Claim

 

There are chances that your car insurance claim may also be rejected by your service provider. This can happen under the following circumstances:

 

  • The driver of the car is driving without a valid license
  • Information of the incident for car insurance claim must be immediate otherwise it may create hassles in settlement
  • If the driver is driving the car after consuming alcohol or drugs or any other intoxicants
  • If you repair the car before inspection and submission of the survey report by the inspector to the insurance company

 

These are the don’ts that every car owner has to follow before making a claim to the insurance company.

 

The Norms to Be Followed by The Car Owners

 

Regardless of how easy and convenient the process of a car insurance claim maybe, you would want to avoid being in such a situation, nonetheless. For this, every car owner must abide by a set of norms.

 

Never keep your car unlocked even in anxious times. Keep the insurance policy document in the car itself. Study your car insurance policy document carefully and know beforehand what is covered and what is not covered.

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Disclaimer :The information published on this website is for the public's reference only. Content of this information is to provide an overview of your 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 for Travel/Health/Motor. Bharti AXA General Insurance Company Limited makes no representations about the suitability, reliability, timeliness, and accuracy of the information, travel, services, or any other items mentioned on this subject for any purpose whatsoever.

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