Car Insurance Claim Settlement

What is Car Insurance Claim Settlement

Car Insurance Claim is the process under which a car insurance policyholders requests the insurer to compensate for the expenses/damage incurred by him/her due to an unfortunate event involving his/her car. The amount and extent of the claim amount depends on the Insured Declared Value (IDV) of your car and the type of car insurance policy bought by you - third party, own damage or comprehensive.

Types of Car Claim Settlement

A car insurance claim can be settled in either of the two ways:

1) Cashless Claim

If you get your car repaired at a garage authorised by the insurer then you enter a cashless claim settlement process. As the name suggests, under this type of claim the entire process is cashless which means that the policyholder is not required to pay any cash/money to the insurer authorised garage for the repair of his/her car. The insurer makes the payment to the garage directly subject to the claim amount. The policyholder is only liable to pay for the compulsory deductible and voluntary deductible if opted for at the time of policy purchase.

2) Reimbursement Claim

When you get your car repaired at a garage/workshop outside the authorised network of the insurer, you enter a reimbursement claim settlement process. Under this process, the policyholder makes the payment for the repair cost at the garage of his/her choice and gets the repair cost reimbursed from the insurer later subject to the claim amount. The insurer reimburses the entire claim amount to the policyholder after factoring in the applicable deductibles - compulsory and voluntary (if opted for).

Car Insurance Plans In Own Damage (OD) Claim Settlement (FY 2018-19)

Claim settlement ratio is a way of ensuring the trustworthiness of the car insurer.

Car Insurance Providers

Claim Settlement Ratio (CSR)

Personal Accidental Cover

Third-party Cover

Network Garages

No Claim Bonus

IFFCO Tokio Car Insurance 96.44% Upto Rs. 15 Lakh Available Available Available
Royal Sundaram Car Insurance 94.07% Upto Rs. 15 Lakh Available Available Available
Oriental Insurance Car Insurance 93.16% Upto Rs. 15 Lakh Available Available Available
Universal Sompo Car Insurance 92.45% Upto Rs. 15 Lakh Available Available Available
New India Car Insurance 92.23% Upto Rs. 15 Lakh Available Available Available
TATA AIG Car Insurance 91.80% Upto Rs. 15 Lakh Available Available Available
SBI General Car Insurance 91.74% Upto Rs. 15 Lakh Available Available Available
Bajaj Allianz Car Insurance 91.23% Upto Rs. 15 Lakh Available Available Available
HDFC Ergo Car Insurance 89.48% Upto Rs. 15 Lakh Available Available Available
Future Generali Car Insurance 88.56% Upto Rs. 15 Lakh Available Available Available
Bharti AXA Car Insurance 88.49% Upto Rs. 15 Lakh Available Available Available
ICICI Lombard Car Insurance 87.84% Upto Rs. 15 Lakh Available Available Available
Liberty General Car Insurance 87.48% Upto Rs. 15 Lakh Available Available Available
Cholamandalam Car Insurance 85.86% Upto Rs. 15 Lakh Available Available Available
Go Digit Car Insurance 85.76% Upto Rs. 15 Lakh Available Available Available
United India Car Insurance 84.17% Upto Rs. 15 Lakh Available Available Available
Reliance Car Insurance 83.81% Upto Rs. 15 Lakh Available Available Available
Kotak Mahindra General Car Insurance 81.70% Upto Rs. 15 Lakh Available Available Available
National Insurance Car Insurance 80.50% Upto Rs. 15 Lakh Available Available Available
Magma HDI Car Insurance 75.66% Upto Rs. 15 Lakh Available Available Available
Acko Car Insurance 72.68% Upto Rs. 15 Lakh Available Available Available
Edelweiss Car Insurance 70.59% Upto Rs. 15 Lakh Available Available Available
Shriram General Car Insurance 62.84% Upto Rs. 15 Lakh Available Available Available
DHFL General Car Insurance 53.10% Upto Rs. 15 Lakh Available Available Available

(Source: IBAI’s General Insurance Claim Insights Handbook For Policyholders - 4th Edition)

Documents Required for Car Insurance Claim Settlement

You need the following documents at the time of claim settlement of your car insurance:

  • Duly signed and filled claim form
  • Insurance Policy Document
  • Car’s Registration Certificate (RC)
  • Driver’s licence (DL)
  • Pollution Under Control (PUC) Certificate
  • Original receipt/bills of repairs (in case of reimbursement claim)
  • FIR (in case of fatal injuries/accidents or third party liabilities)
  • A copy of PAN Card (if the claim amount is more than Rs. 1 lakh).
  • Duly signed Satisfaction Voucher (SV) or Discharge Voucher (DV)

What is your car's brand?

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How To Make A Cashless Car Insurance Claim?

Given below is the process which is generally observed with most of the insurers, however the actual process may vary from insurer to insurer:

Step 1: Intimate Claim With Insurer

Inform the insurer immediately about the road accident or any other mishap involving the insured car and initiate a claim process. You can do this by calling at the customer care number of the insurer or through the insurer’s official website or mobile app (if available). The insurer will provide you with a claim reference number after registering your claim.

Step 2: Assessment of Damage Sustained

After the claim has been successfully registered, the insurer will assign a surveyor to you who will assess the extent of damage/loss sustained by the insured car or will send you a self-inspection link on your registered mobile number.

In the former case, the surveyor will send the damage report to insurer after the inspection whereas in the latter case the insurer will estimate the repair cost and reach out to you as soon as possible. Provide all the required documents to the insurer at this stage for easy and quick settlement of your claim request.

Step 3: Towing and Repair of Car

Get your car towed to a garage authorised by the insurer for repairs. You can also ask the insurer to provide a towing service for your insured car. Insurers generally provide free towing facility up to Rs.1,500, however, this varies from insurer to insurer.

Step 4: Claim Settlement

The insurer will pay for the repairs directly to the garage according to the entitled claim amount. The policyholders can take back their repaired car after paying the necessary deductibles.

How To Make A Reimbursement Car Insurance Claim?

Given below are the common steps needed to be followed for a reimbursement car insurance claim:

Step 1: Claim Intimation

The first step is to inform the insurance provider about the accident/mishap involving the insured car immediately. This can be done by contacting the insurer’s customer care team on call or via email. The insurer will provide you with a claim reference number after registering your claim.

Step 2: Survey and inspection

After the registration of your claim, the insurer will assign a surveyor to you who will inspect your insured car and assess the extent of damage/loss sustained by it in the accident/mishap and report it to the company. Policyholders must submit all the required documents to the surveyor to help process the claim settlement.

Step 3: Towing and Repairs

After the inspection of the insured car, policyholders can get their car towed to a garage of their choice to proceed with the car repairs. Most insurance providers provide free towing facilities up to Rs.1,500.

Step 4: Final Reimbursement

Since the insured car is getting repaired at a garage outside the authorised network of the insurer, the policyholder needs to pay the entire repair cost to the garage and initiate a reimbursement process for the paid amount with the insurer. The insurer will reimburse the repair cost subject to the entitled claim amount after deducting the applicable deductibles.

Common Claim Rejection Reasons

Below are some of the common reasons which lead to rejection of car insurance claims by insurers:

  • Occurrence of accident/mishap involving the insured car outside the geographical location stated in the insurance policy.
  • Occurrence of accident when the driver is under the influence of intoxicants.
  • Occurrence of accident when the insured car is being used for illegal activities.
  • Expiry of insurance policy.
  • Fraudulent claim

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Car Insurance Claim Settlement FAQs

  • How is a claim settled in the case of theft of the insured car?

    In the case of theft of a vehicle a claim can be made by following the steps below: Step 1: Register an FIR (First Information Report) at the nearest police station and inform your insurer. The police will try to trace your vehicle until 90 days after which the police will issue a non-traceable report for your vehicle. Step 2: If the police are not able to trace the insured car in the stipulated time period then a court of law will issue a Non Objection Certificate (NOC). Step 3: Post NOC issuance, the insurer undertakes an investigation from its side to trace the vehicle. In case the insurer is not able to find the vehicle, the claim settlement process gets initiated. Step 4: Since it is a case of theft i.e. total loss, the insurer will provide you with the IDV of the car after deducting the applicable deductibles.
  • How can I locate the nearest garage associated with my insurer?

    To locate your nearest garage authorised by your insurer, you can either call and enquire on the customer service helpline of the insurance provider or look for the same on the insurer’s official website. The option is generally present in the claims section on the website by the name ‘list of network garages’.
  • When and to whom do I need to submit the documents?

    Policyholders are required to submit the documents to the surveyor when the vehicle is at the garage for repairs.
  • What is the role of the surveyor in the claim settlement process?

    When a claim is raised by any policyholder the insurance company sends a surveyor to conduct an inspection to assess out and understand the extent of damage incurred by your car. Surveyor submits an assessment report of the damage to the insurance company for claim settlement processing.

  • Can an individual make a claim if the insurance policy had expired a day before the accident?

    No, you cannot make a claim if your car insurance policy has expired. It is thus very important to renew the policy in time because no claim can be made under an expired policy.

  • What are the documents required to register a claim?

    To register a claim, you need a copy of an FIR (in case of an incident), ID proof, Address proof, and policy details.

  • Are natural calamities covered under car insurance?

    Yes, natural calamities including flood, cyclone, earthquake, hurricane etc. are covered under Comprehensive as well as Standalone Own-Damage car insurance plans.

  • What is the meaning of No Claim Bonus?

    No Claim Bonus is a reward provided by the insurance company to the policyholder at the time of renewing the insurance policy for not making any claim during the term of the insurance policy.

  • When is a claim settled in a cashless manner?

    Whenever the repair is done at a network garage of the insurance provider, a claim is settled in a cashless manner.

  • Can my claim be rejected?

    Yes, an insurance claim can be rejected in the following cases:

    • If the repairs are made before making a claim.
    • If any changes are made to the car without informing the Insurance Company.
    • If the insurance policy has expired
    • If the car’s driver was under the influence of alcohol/drugs at the time of the incident.

  • What car insurance add on covers are crucial?

    Various add-on covers that are important for your car are No claim bonus(NCB), zero depreciation, total cover, engine cover, roadside assistance cover etc. InsuranceDekho offers various add-ons that you can avail of with your standard car insurance policy.

  • Is there a limit on the number of add-ons I can purchase?

    No, there is no limit on the number of add-ons that can be purchased with a car insurance policy.

  • What are the documents required for add-on covers in car insurance?

    No documents are required for availing of add-on covers in car insurance.

  • What are the different types of add-on covers in car insurance available in the market?

    There are various types of add-ons offered by insurance companies such as Zero Depreciation, NCB (No claim bonus) , Consumable Cover, Roadside Assistance cover etc.

  • What do I need to know before buying a car insurance add-on?

    Before buying a car insurance add-on, you must know its features, coverage offered, and the premium amount.

  • How do add-on covers enhance car insurance?

    Add-on cover provides additional benefits over your standard car insurance policy. Add-ons such as Zero Depreciation, NCB (No claim bonus), Consumable Cover, Roadside Assistance cover, Key protection cover, offer extra coverage for specif car parts/circumstances, thereby enhancing the basic coverage.

  • Why should I buy a add-on covers in car insurance?

    Add-on covers are the additional benefits that are provided on your basic car insurance policy. These offer overall protection to your car from losses/damages thereby compensating and protecting you from paying high claim costs.

  • Is it necessary to have car add cover on every year?

    No, it is not necessary to have a car add-on cover every year.

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#Applicable on non-inspection cases i.e. existing policy has not expired or when buying a policy for a new vehicle.