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How to Settle a Car Accident Claim Explained

Wish

Written by Sharad Bajaj

Updated Oct 14, 2023

How to Settle a Car Accident Claim Explained

No matter how cautious you are while driving, it is possible that a mishap such as an accident occurs on the road. While facing such an unfortunate event, it is beneficial to have the peace of mind garnered by having your car insured for cases such as accidents. Raising and settling a claim for a car accident will result in a compensation amount from your car insurance company which will alleviate the financial hardship caused by an accident. The specifics of it will depend upon the nature and coverage of your car insurance policy.

 

How to Settle a Car Accident Claim with Your Insurance Company?

There are several steps to settling a car insurance claim settlement. To claim all the applicable benefits of your insurance policy, it is important that you contact and inform your car insurance company immediately after the accident has occurred.

Documents Required to Settle a Car Accident Claim

There are several documents required for you to be able to settle a claim. They are as follows:

  • A copy of the insurance policy
  • A copy of your driver’s license
  • Car registration certificate
  • FIR (First Information Report) filed with the police
  • In case of reimbursement claim, you would also need to submit:
  • Records of expenses, including an estimate of the repairs
  • Medical reports, in case of physical injuries,

Steps to Settling a Car Accident Claim

The insurance company will assess your vehicle and your claim and reimburse you the cost of the damages if the claim is found to be genuine. The following are the steps to ensure a successful claim.

1. Inform your insurance company immediately after the accident, before the claim settlement period of seven working days is lapsed. This will involve submitting the aforementioned necessary documents.

2. A mandatory step in the settling of a car accident insurance claim is the lodging of an FIR (First Information Report) at the nearest police station, a copy of which will also need to be submitted to the insurance company.

3. In case a third party is involved, a case in the Motor Accident Claims Tribunal will have to be registered.

4. The collection of proof is an important part of the process as well. You may take pictures of the damage or the physical injuries to gather proof and strengthen your claim.

5. Your car will be surveyed by the insurance company to assess the damage.

6. If you prefer to make a cashless claim, the insurance company will have your car towed (in order to make sure that no more damage occurs) to a garage and have it repaired. Alternatively, you may get the repairs done yourself, submit all receipts, and be reimbursed after your claim is found to be genuine.

How to Avoid Claim Rejection?

The following points are things to keep in mind to avoid claim rejection:

1. Collect Evidence: In case of a mishap, it can be traumatic but make sure to try and keep your cool. It is important to take photographs of the situation or note down the name and numbers of people who can confirm the incident. This will lower the chances of claim rejection.

2. Inform the Insurance Provider:  Make sure to inform the insurance provider about the situation as soon as possible. Extended delays can be cited as a reason for claim rejection. 

3. Fill the Claim Form: It is a crucial document for the claim process. Make sure to fill the required diligently and try your best to avoid errors and inconsistencies. 

4. Documents: The other documents that are required by the insurance provider to process the claim are also very important. Make sure you can produce these documents at the time of claim to avoid complications and claim rejection.

5. Modifications on the Car: Any accessories added to the car whether they be aesthetic, performance or safety related must be an informed installation. If there are modifications that the insurance provider does no know about the chances of your claim being rejected are higher.

6. Steer Clear of Consequential Loss: After the car has been damaged make sure not to further aggravate the damage by using it. This additional damage is called consequential loss and is not covered by the insurance provider.

7. Carefully Check the Terms and Conditions: The terms and conditions mentioned in the insurance document contain all the dos and don’ts of filing car insurance claims.

Conclusion

It is important therefore to be aware of the needful steps in case of an unfortunate situation like an accident. By being aware of the necessary procedures and by submitting all documents and recording evidence, you can make a successful accident claim.

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Car Insurance Claim Settlement FAQs

Q.What is a car insurance claim settlement?

A. Car insurance claim settlement is the process in which car insurance company compensates the policyholder for the losses/damages incurred as a result of an unfortunate event.

Q.Is an FIR required for a car insurance claim settlement?

A.In case of an accident, bodily injury, disability or death of a third-party FIR is mandatory. Also if your car is stolen, you need to file an FIR.

Q.How many times can we claim car insurance?

A.There is no limit on a number of claims one can make. However, you can make it subject to the IDV of your car. Also, No claim bonus (NCB) is affected when you make a claim under your car insurance policy.

Q.How is the claim settled if my car gets stolen?

A.In case your car gets stolen, file an FIR at the nearby police station. After filing the FIR, your vehicle will be traced for 90 days by the police. In case it is not traced, a non-traceable report will be given to the insurance company. Along with this NOC (Non-objection Certificate) will be issued to the insurer and the investigation will be done by the insurance company regarding the tracing of car. The claim settlement process will have proceeded in case the car is not traced by the insurance company.

Q.How can I locate the nearest garage authorised by my car insurance provider?

A.You can find the nearest Cashless Garages at InsuranceDekho. You can also contact the customer care number of your insurance company to know the authorised garage.

Q.When and to whom should I submit all the documents?

A.You should submit the documents to the surveyor. The documents must be provided at the time of assessment of damages incurred by your car.

Q.What are the reasons behind the rejection of car insurance claims?

A.Some of the reasons behind the rejection of car insurance claims are as follows: 1) Claim form not filled completely. 2) Accident occurred if the driver was under the influence of alcohol , not carrying a valid license, RC. 3) Providing false documents at the time of buying the car insurance policy. 4) Accident of car used for illegal purpose.

Q.How do I get claims on my car insurance in India?

A.Our customers can make their insurance claim in a trouble-free way contacting by our claims team. You can also initiate the process with your Insurance Company.

Q.Can I claim car insurance without a license?

A.No, you cannot claim car insurance without holding a car license.

Q.Is a canceled cheque necessary to claim car insurance?

A. A cancelled cheque is required whenever a claim is settled in a reimbursement manner.

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

Wish

Written by Sharad Bajaj

Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. Read More

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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