Claim Process: Documents Checklist
Motor Insurance provides financial cover in case of loss or theft of the vehicle. At the
time of the claim there are certain documents that are required which vary
depending upon the claim.
Documents required for Accidental Claims:
- Policy Copy
- Claim form duly signed by the insured
- Copy of Vehicle Registration
- Copy of Driving License
- First Information Report (FIR)
- Original Estimate
- Original Repair Invoice, Payment Receipt
Documents required for Theft Claims:
- Policy Copy
- Claim form duly signed by the insured
- Copy of Vehicle Registration along with original keys
- Copy of Driving License
- First Information Report (FIR)
- Intimation to RTO
- RTO transfer papers duly signed
- Indemnity Bond
- Original police certified no-trace report
Documents required for Third Party Claims:
- Policy Copy
- Claim form duly signed by the insured
- Copy of Vehicle Registration
- Copy of Driving License
- First Information Report (FIR)
What if I forget to renew my auto insurance on time?
If a vehicle's auto insurance policy is not renewed, driving that vehicle is illegal.
Also, if the vehicle has an accident, the insurance company will not pay out claims.
All No Claims Bonuses will also be forfeited
A car insurance policy has to be renewed before the expiry of the ongoing term of
insurance. Delay in renewing a policy and thereby driving a vehicle without valid
motor insurance is illegal and there are substantial penalties.
Here are some scenarios where you will lose out:
In case the uninsured vehicle has an accident, the insurance company is not
liable and you would have to bear the liabilities alone, if any.
If the policy is not renewed within 90 days of the expiry date of the previous
policy, the No Claim Bonus cannot be claimed.
If the policy expires and is not renewed on time, the insurance company will
insist on a physical inspection of the vehicle before granting renewal.
No Claim Bonus
If you have made no claims on your motor insurance in a particular year, the
insurance company grants a discount in the premium during policy renewal called a
No Claims Bonus. Insurers reward policyholders for not making claims by providing
this discount on the Own Damage part of the premium up to a maximum of 50 per
cent. That is, if you have made no claim in the first year, you get a bonus of 20 per
cent; for two consecutive years, the bonus is 25 per cent; for three consecutive
years, it's 35 per cent; for four consecutive years, 45 per cent, and for five
consecutive years, the bonus is 50 per cent.
If you have made no claims on your motor insurance policy in a particular year, the
insurance company grants a discount in the premium during policy renewal called a
No Claims Bonus.
Insurers reward policyholders for not making claims by providing this discount on
the Own Damage part of the premium up to a maximum of 50 per cent. That is, if
you have made no claim in the first year, you get a bonus of 20 per cent; for two
consecutive years, the bonus is 25 per cent; for three consecutive years, it's 35 per
cent; for four consecutive years, 45 per cent, and for five consecutive years, the
bonus is 50 per cent. Remember to renew your policy within 90 days of expiry to
avail of the No Claims Bonus.
What are the process and procedure after submitting the claim form for
the damaged vehicle
1. After you submit your claim form and the relevant documents, the insurer
appoints a surveyor to inspect your vehicle and submit his/her report to the
insurance company. You also get the details of the surveyor's report. In case of
major damage to the vehicle, the insurer arranges for a spot survey at the site of
accident.
2. You can undertake repairs only on completion of the survey. Once the vehicle is
repaired, you submit duly signed bills/cash memos to the insurance company.
3. Some companies have the surveyor re-inspect the vehicle after repairs. In such a
scenario, you pay the workshop/garage and obtain a proof of release document (this
is an authenticated document signed by you to release the vehicle from the garage
after it is checked and repaired).
4. Once the vehicle has been released, you then submit the original bill, proof of
release, and cash receipt from the garage to the surveyor. The surveyor sends the
claim file to the insurance company for settlement along with all the documents.
5. Finally, the insurance company reimburses you.
What if the accident takes place in a city other than where the motor
insurance policy was issued?
It does not matter where the accident takes place; if your motor insurance policy is
in force, you remain insured throughout the country.
How much would the insurance company pay in the event of an accident?
In case of an accident, the insurance company pays for the replacement of the
damaged parts and the labor fees.
The costs that you have to bear include:
o
The amount of depreciation as per the rate prescribed
Reasonable value of salvage (if not repaired at the outlet)
Voluntary deductions under the policy, if you have opted for any
Compulsory excesses levied by the insurer
Will the claim amount be paid to the workshop or the insured?
If you have used the cashless repair facility, the claim money is paid directly to the
workshop or garage. Otherwise, you receive the claim amount.
Will the insurance company pay an advance on the basis of a damage
estimate?
This practice varies by company.
Most companies offer a cashless claim service whereby you don't have to pay for
the repairs - the company handles them directly. Therefore, the question of an
advance does not arise.
In case you choose the non-cashless service, you are reimbursed once all the
repairs have been completed and the bills have been submitted to the insurance
company. In such cases, if you are unable to pay the entire charges, you need to
inform the insurance agent and the insurer will make the balance payment.
Can I produce bills at the end of the year and claim for small repairs
carried out?
No, a claim has to necessarily be lodged immediately - you cannot accumulate
them. Thus, bills for small repairs accrued over the period of insurance will not be
reimbursed by the insurer.
Who bears the towing charges?
Comprehensive insurance policies provide for towing charges from the place of
accident to the workshop (subject to a maximum of Rs.300 for scooters and
motorcycles and Rs.1500 for private cars and commercial vehicles). You can also
opt for higher towing charges by paying extra premium. On your request for towing
services in the event of an accident, the insurance company will pay up to the
maximum limit specified or the actual amount spent, whichever is lower.
Are servicing costs included in the claim amount?
No.
What should I do if I receive a Court notice from a third party claimant?
In the event of a third party claim, notify the insurance company in writing along
with a copy of the notice and your insurance certificate.
DO NOT offer to make an out-of-court settlement or promise payment to any party
without the written consent of the insurance company. The insurance company has
a right to refuse liabilities arising out of such promises.
The insurance company will issue a claim form that has to be filled and submitted
along with:
Copy of the Registration Certificate
Driving license
First information report (FIR)
After verification, the insurance company will appoint a lawyer in your defense. You
are expected cooperate with the insurance company, providing evidence during
court proceedings. If the court orders compensation on your part, the insurance
company will then do it directly.
Procedure for Motor Insurance in case of theft
1. In the event of theft of vehicle, lodge the First Information Report (FIR) with a
police station immediately.
2. Inform your insurance company and provide them with a copy of the FIR.
3. Submit the Final Police Report to the insurance company as soon as it is received.
4. Extend full cooperation to the surveyor or investigator appointed by the company.
5. After the claim is approved, the Registration Certificate of the stolen vehicle has
to be transferred in the name of the company. You also need to submit the duplicate
keys of the vehicle along with a letter of subrogation and an indemnity on stamp
paper (duly notarized) to the insurance company.
What if I have an accident with an uninsured vehicle? What is the extent
to which I am covered?
It does not matter whether the vehicle on the other side has insurance or not. If you
have a comprehensive policy for your vehicle, you are fully insured against
liabilities, subject to your policy specifics.
If there is a dispute regarding the claim settlement between the insured
and the insurer, how is the dispute resolved?
The most common form of dispute that arises between the insured and the insurer
is about admission of liability or the size of the claim.
Disputes regarding claim amounts, where the insurer has agreed to cover the claim
under the policy, are referred to an arbitrator. If the decision of the arbitrator is
disputed by either party, the Consumer Forum or the Civil Court could be
approached.
