Motor insurance policy is undeniably an indispensable requirement for all vehicle owners in India. The policies offer financial coverage against risks like accidents, damage or theft, and even third-party liability, acting as a financial security.
While the benefits of having motor insurance are many, navigating coverage and claims is often tricky in this ever-changing insurance landscape, especially amid the regular introduction of new regulations and technological advancements. Moreover, complexities arise when claims are subject to scrutiny. Even the slightest discrepancy in meeting policy guidelines can lead to rejection.
This makes it imperative to keep up with the latest developments in the insurance industry and partner with a trusted insurance provider to navigate the changing landscape and its impact on policy claims. Having an insight into the process and a plan can streamline the process of filing a claim.
Let’s discuss the types of motor insurance claims common in India, the related claim process and other crucial details to navigate them properly.
Types of motor insurance claims in India
Compulsory Personal Accident (CPA) extension claims provide compensation benefits in the event of an accident causing bodily injury or even the death of the owner-driver insured. Under this claim, the insured or nominee can avail of compensation for treatment, disability benefits, or disability-induced loss of income.
Own damage claims can be raised by the insured for the damages caused to their car owing to an accident, vandalism, or theft. It often covers the cost of replacement or repair of the insured motor car but bears the excess amount or deductibles mentioned in the policy.
Third-party liability claims are filed when the vehicle insured under the policy is the cause of damage, injury, or death to a third party. This type of insurance covers the policyholder’s legal liabilities and accounts for the property damage and medical expenses. It even helps settle legal expenses if a lawsuit is filed against the policyholder.
Notably, the policyholder can opt for a reimbursement of expenses or cashless settlement of the policy.
Steps of motor car insurance claim process
- Contact the customer care of the insurer and share accident details, such as the date, time, and location of the incident along with all the supporting proof and documents.
- Furnish the required documents, including a claim form, a copy of the vehicle’s registration certificate, policy document, driver’s licence, a copy of FIR, photographs of the damage, and estimated repair cost to initiate the survey process.
- The insurance provider may appoint a surveyor or an authorised representative to verify the claim’s authenticity and estimate the repair cost.
- The motor insurance provider is obligated to settle the insured’s claim within a specified timeline as agreed upon on the policy term.
Today, insurance providers are using AI and machine learning to enhance their risk management and claim processes. While these ensure speedier claim settlements, they can get claims rejected if inaccurate information about the causative incident or only half of the documents are submitted.
Tips to navigate motor insurance coverage and claims
Understand the different types of coverage available and what they cover. Different types of coverage may include liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments. Analyse their offering to understand how the coverage applies to you.
Don't be afraid to browse the policies offered by different insurance providers to compare their coverage options, discounts, and quotes to get the best deal.
When signing up for coverage, read the fine print carefully to understand any exclusions or policy limitations.
Make sure to file a claim at the earliest to ensure you get the coverage you are entitled to. Additionally, stay updated with the latest insurance regulations that may affect your claim process.
It is challenging to keep up with the ever-changing landscape and complexities of motor insurance, especially in this technologically evolving era. However, by understanding the coverage, reading the fine print, filing claims promptly, and staying updated with changes in the industry, one can overcome the challenges and settle claims.
Virender Suri, General Insurance Expert, Insurance Samadhan