Motor Vehicle Insurance is compulsory in India under Motor Vehicle Act 1988. Motor vehicle insurance is the insurance coverage of the risk of third party arising out the use of motor vehicle and also for covering the risk of damage caused to the vehicle. Indian people neither concern about Life Insurance Plan nor Medical Insurance plan but they are more concern on Motor Vehicle Insurance either they are driving a Scooter or a Bike or a Car or a Truck. It is mandatory otherwise if anyone injured without insurance vehicle, it will treated like a Crime.
Now days everyone have their own vehicle, roads are jam pack with vehicles, the risk is high so as a result, motor insurance companies are growing day by day and claims have also gone up. But many a time, the policyholders do not know exactly what they can do to get their Car Insurance Claim Procedure.
Here we are explaining the procedure how to claim on your car insurance policy. This will help you a lot.
How to claim on your Car Insurance Claim
We will understand this procedure in some scenario step by step so it will be very easy for us.
Claims for own-damage: If your car met with an accident, you should follow these steps to claim for damages:
- Inform the insurance service provider – First and foremost you should inform to the insurer at the earliest and you have to submit a duly filled in claim form along with the required documents to the insurance company before you send the car to the garage for any repairs. The forms are available on insurance service provider’s websites. Most insurers follow strict guidelines and its mentioned in the policy documentation.
- Lodge FIR – In some cases, First Information Report (FIR) is required so lodge FIR to the nearest police station for the safer side. Although it may not be mandatory for claim settlements but it is advisable to lodge an FIR. It depends on the condition.
- Assess the damage – Once you inform to insurance service provider, they will appoint a surveyor who will assess / evaluate the damage of your vehicle. He will prepare a report and pass it on to the insurance company. You will also receive a copy and then you can move your car to the nearest network garage for repair.Note: If the damage is severe then surveyor will reach the spot of the accident at the earliest for survey.
- Claim settlement – As soon as insurance company receives survey report, they will analyze the claim request and sends an approval to the garage. The garage will have to provide an estimated cost for the vehicle repair and timelines for the same. The insurer will be in touch with the network garage for an overall view of the extent of damage and the way in which the repair work is proceeding.
After the work is completed, you will have to take the duly signed bills and documents from the garage and submit them to surveyor. Surveyor will send it to the insurance company.
If all the documents are completed, the insurance provider will reimburse your bills. Keep in mind that there will be some compulsory deductible and variable deductible components, as stated in the policy document. Once your claim settled and your car is OK then you can drive again.
Car insurance claim process for a third party claim: -If you are responsible for an accident where a third-party suffers injuries or damage to property, here is what you need to do:
- Inform to insurance service provider – First and foremost you should inform to your service provider at the earliest. Also remember not to make any financial commitments to third party.
- Lodge FIR – Lodge FIR at the nearest police station and keep a copy of the FIR for future reference as well.
- Share policy document – You should mandatorily share a copy of your car insurance policy with the third-party, so that they can raise a claim on it.
- Claim at Motor Tribunal – According to the Motor Vehicles Act 1988, third-party liability claims are raised at the Motor Accident Claims Tribunal (MACT). The claim can be raised by the third-party at the tribunal closest to his/her residence or yours.
After receiving all the documents, the insurance service provider will verify the documents and assess the accident and if found satisfactory, you will get a lawyer appointed by them.
If the court directs you to pay the damages to the third party thereafter, the insurance service company will directly pay the dues to the third party.
It is advisable to see if the situation can be settled amicably outside the tribunal.
Claims for theft: If you find that your car has been stolen then follow the below procedure.
- Lodge FIR – Lodge FIR at the nearest police station and keep a copy of the FIR for future reference as well.
- Inform to insurance service provider – You should inform to your service provider at the earliest with a copy of FIR
- Once you receive the final report from police station, make a copy of it and submit it to your insurance company. The insurance company will assign an investigator. Investigator will make the report and submit to insurance company. Once that is done, submit the RC book of your stolen car to the insurance company.
- Submit the duplicate keys of the car and also a subrogation letter. You will also need to submit a notarized indemnity on a stamp paper also.
- Once all the formalities are completed, the insurance company will disburse the claim.
It is very important for us to know about the formalities of car insurance claim procedure otherwise many people are paying from their pocket due to lack of these information. Now days the entire insurance service provider’s having a very good customer support network and their teams are skilled and co-operative also so you must communicate with your insurer whenever you need it.
I wish that you don’t need these procedures. I wish you will have a Safe Drive, someone is waiting for you.
