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
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?
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
Car Insurance for Popular Car Models
Add-ons For Your Car Insurance Policy
A car's value depreciates constantly with time. Thus, at the time of a claim settlement, the depreciated value of a car is deducted from the claim amount. However, by opting for a zero depreciation add-on you can shift the liability of the depreciation cost to the insurer and get the entire claim amount without any deduction of the depreciation sum. This add-on is generally available till the age of 5 years of car, however, the car age limit varies from insurer to insurer.
A No Claim Bonus (NCB) is a discount given by the insurer in the premium amount to a car insurance policy holder for not making a claim in the entire tenure of the four wheeler insurance policy. This discount is not available if the policy holder has made even a single claim. However, with the NCB cover, a policyholder will be entitled to receive an NCB discount despite having made a claim subject terms and conditions of insurance company. The NCB discount keeps on increasing with every claim-free year until it reaches 50%.
A car's engine is by default not covered under either a comprehensive or a standalone own-damage car insurance policy. And therefore, if it gets damaged due water-logging or oil leakage, your insurance company is not liable to pay for its damages. But, if you opt for the add-on known as Engine Cover, you can get your car's engine insured by the insurer for damages incurred due to water ingression as well as leakage of lubricants. Engine Cover is one of the most popular car insurance add-ons and is available against the payment of a nominal premium.
If you have a return to invoice cover added on to your comprehensive car insurance policy, you can claim the total ex-showroom price of your four wheeler, taxes and registration charges, in case of total loss. In case of total constructive loss (more than 70% of damage) or theft of your car, an insurance company pays the Insured Declared Value (IDV) of your car as compensation. However, this IDV is lesser than the actual amount paid by you at the time of purchasing your car. When you opt for the add-on called Return To Invoice Cover with your car insurance policy, the insurance company pays the total ex-showroom price of your car plus the taxes and registration charges incurred at the time of purchase, as the claim amount in case of total loss.
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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.
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