Which Is The Best Car Insurance With Good Claim Settlement?
The best car insurance companies in terms of claim settlement ratio are IFFCO Tokio, Royal Sundaram, Oriental Insurance, HDFC Ergo and Universal Sompo.
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Having car insurance is mandatory for every car owner-driver in India. The third party insurance cover was made obligatory by the Motor Vehicles Act of 1988. However, it is also recommended to get an own-damage cover for your car. In case of a mishap, this type of cover will compensate for the damages to your car. Moreover, the cover provides this protection in several different scenarios, including theft, vandalism, road accidents, natural or manmade calamities, and fires. If you are looking for the most hassle-free insurance for your car, then you should opt for a comprehensive car insurance plan. It will take care of both your own damage costs and third party liabilities under a single premium and you will have only one renewal date to remember. In this article, we will tell you about some of the best car insurance companies concerning claim settlement.
What is Claim Settlement and Claim Settlement Ratio?
Claim settlement is the right of the insurance holder that allows them to file for compensation for the damages in case they are in an accident. When the insurance holder files a claim and the insurance company reimburses for the damages according to the coverage provided by the insurance policy. Moreover, there are two main ways by which you can receive your claim:
Cashless ClaimIf there is a mishap and your car needs to be repaired, then you can take it to a network garage. These garages have tie-ups with insurance providers. Hence, when the repairs are complete the cost of the repairs is settled directly between the garages and insurance company. This form of compensation requires little to no out-of-pocket expenses from your side.
Reimbursement ClaimIf you choose to go to a non-network garage to get your car repaired the process of receiving compensation is longer. Once the repairs are complete, you will need to submit the original invoice to your insurance provider who will then reimburse this amount to you. This process is comparatively cumbersome and involves higher out-of-pocket expenses.
Claim Settlement Ratio is a yardstick of measurement used in car insurance. It measures the trustworthiness of the insurance provider and helps to understand the likelihood of the insurance provider proving the compensation in case of a mishap. It is calculated by taking into account the number of claims in a financial year and divides it by the total number of claims received in a year and multiplies it by a hundred. The higher the claim ratio, the lower are your chances of facing claim rejection.
Which Car Insurance Companies Have the Best Claim Settlement Ratio in India?
Following are the top five car insurance providers in India according to their claim settlement ratio:
- IFFCO Tokio General Insurance: 95.30%
- Royal Sundaram General Insurance: 92.66%
- The Oriental Insurance Company: 91.76%
- HDFC ERGO General Insurance: 91.23%
- Universal Sompo General Insurance: 90.78%
You may also like to read:- How Zero Depreciation Cover Can Help During Car Insurance Claim Settlement?
What Are the Other Factors to Look At Before Purchasing Car Insurance?
Though the claim settlement ratio is an important factor when comparing car insurance providers, there are other factors that must also be taken into account. Following are the other important factors to check before selecting a car insurance policy:
- Keep an Eye Out for Discounts: Insurance providers do give discounts from time to time, make sure to keep an eye out for these if you are hunting for a good deal.
- IDV: Check the IDV of your car, it will help you understand which car insurance policy offers a better deal.
- Deductibles: The best kind of car insurance offers a good balance between deductibles and premium. Select the right voluntary deductibles to make the most of your car insurance.
- Add-on Covers: Make sure to choose the right add-on covers; these can make a world of difference. Since they are optional in nature, they allow you to shape your insurance policy to fit your individual needs.
- Read Reviews: Reviews are written by customers on an insurance provider’s claim process, customer service etc. can easily be found on the internet.
- Cashless Garages: The network of cashless garages is very important when selecting your car insurance policy. Make sure to check that your selected insurance provider has enough network garages in your area.
In a nutshell, using the claim settlement ratio is an easy and effective way to discern which insurance company offers the best chances at receiving your claim in case of a mishap. However, there are also other equally important aspects of car insurance that need to be looked at. When you purchase insurance online, comparing these factors becomes extremely simple and can be done from the comfort of your home in a short period of time.
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.