Process of filing auto insurance; Car/Bike Insurance claim process

 How to claim insurance in case of car or two-wheeler accident

Below is the detailed process for the same:-

Motor insurance has recently surpassed all other forms of insurance in popularity as a result of the surge in the number of people purchasing private automobiles. However, when filing their first auto insurance claim, the vast majority of customers have no idea what they're doing. This article will help in clarifying the details about how to file insurance claim for automobiles.

How to File a Claim with Your Auto Insurance

The convenience of having a car or motorcycle at our disposal is invaluable. These are extremely important to people's day-to-day functioning. As people stay away from public transportation and taxis for their own safety during the pandemic, the value of having a private vehicle has risen.

Automobile insurance claims are simple to file. Motor insurance is the most sought after type of insurance today because of the rising number of people who own their own cars. However, most people do not understand anything when they are filing their first motor insurance claim. Then, let us get the facts straight about auto insurance claims.

1.    The number of different auto insurance claim types is

There are two primary types of auto insurance claims:

(i)            Cashless and

(ii)           Reimbursement.

Both have different characteristics. The cost of the premium for either option may also vary.

(i)            What is Cashless Claim?

Under a cashless claim, you do not have to spend anything out of your pocket to repair your vehicle after it is damaged. The insurer directly pays the repair expenses to its network garage. As a customer, you only have to pay depreciation and deductible, if applicable. The percentage of depreciation varies depending on the age of the car and the damaged part. For example, fibreglass have a 30% depreciation.

Therefore, if this particular part gets damaged and needs to be replaced, the insurer will pay 70% of the cost along with the remaining 30% which will be borne by the policyholder. Deductible is the amount that the insured has to pay before availing the insurance cover. Suppose the mandatory deduction is Rs.2,000 and the insured has a claim of Rs.6,000, then the insured will first have to pay Rs.2,000 and the insurer will pay the remaining Rs.4,000. Overall, cashless settlement is a smooth and hassle-free process for the policyholder.

(ii)          What is reimbursement claim?

Under reimbursement claim, in case of any damage to your vehicle, you can get your vehicle repaired at any garage (outside network garage). You will have to bear the cost of repairs and later apply for reimbursement claim with the insurer. However, make sure you take the receipt and bill for all the repairs done in the garage. The insurer will make the payment after verifying the claim documents and bills.

 

2.    How many types of claims are there for motor insurance based on the incident?

There are three types of claims in motor insurance depending on the incident:-

• Third Party Liability

• Self Damage

• Theft Third Party (TP)

Third Party is a mandatory cover by law in India. The purpose of TP is to provide coverage against legal liability claimed by any third party in which they have suffered loss or injury from your vehicle. TP Section does not provide any cover to you or your vehicle. Under TP, a third party who has suffered injury, property damage or death arising out of your vehicle can claim compensation. In case of death or injury, there is no limit on compensation, this amount to be decided by the Court. If you are a third party in an accident, you have to immediately register a FIR and get the TP insurance details from the vehicle owner. You have to file for compensation in the Motor Accident Claims Tribunal (MACT).

You can file a claim wherever the accident occurred or where you live. Motor claims you can file:-

• Compensation for physical disability or loss

• Compensation for not earning due to disability

• Medical Expenses

• Loss of Property

Self Damage

In the unfortunate event of your death due to an accident, your dependents can file for compensation for Self Damage (OD) - OD claim comes to the fore when your vehicle is damaged due to an accident.

The first thing you have to do in this situation is to inform the police and your insurer. You must not remove your vehicle from the accident site without the consent of the police and the insurer. Once you have given consent to remove the vehicle from the accident site, you can take the vehicle there for repairs and the insurance company will pay either cashless or reimbursement basis.

Theft –

In case your vehicle is stolen You have to file a FIR with the police, inform the insurer and RTO about the theft. For this, you will have to submit the copy of FIR, driving license, vehicle registration certificate etc. to the insurer. The police will investigate the matter, however, if your vehicle is not traced within 90 days, the police will issue a no trace report. No trace report is mandatory for settlement of claims in case of theft. Once you submit the report along with the required documents, the insurer will start the process for claim settlement.

 

3.    Can I claim motor insurance in a digitised way? If yes, what is its process?

The insurance industry is rapidly moving towards digitization and increasingly using scientific applications for claim settlement. One such innovation in these claims settlement is "on the spot settlement" which is done through apps or the insurer's website. In this, the insured has to click pictures of the damage caused to his vehicle and upload it on the insurer's app or portal. Insurers use these images and data analytics tools and fix a claim amount and if it is acceptable to the insured, the settlement is done in less than 20 minutes. With this kind of innovation, the insured can easily get the claim in less time and also get his vehicle repaired quickly without any financial hassles.