Auto Insurance Claims Procedure

Motor insurance is compulsory in India under the Motor Vehicles Act 1988. Motor insurance is the insurance coverage of third party risk arising from the use of a motor vehicle and also to cover the risk of damage to the vehicle. Indians do not care about life insurance plan or medical insurance plan but they are more concerned about car insurance whether they are driving scooter, bicycle, car or truck. It is mandatory otherwise if someone is injured without vehicle insurance it will be treated as a Crime.

Nowadays, everyone has their own vehicle, the roads are full of vehicles, the risk is high and therefore the car insurance companies are growing day by day and the claims are also increasing. But very often, policyholders do not know exactly what they can do to obtain their Car insurance claim procedure.

Here we explain the procedure to follow to make a claim on your car insurance policy. It will help you a lot.

How to make a claim on your auto insurance claim

We will understand this procedure step by step in some scenarios, so it will be very easy for us.

Personal Injury Claims: If your car was in an accident, you must follow these steps to claim damages:

  • Inform the insurance service provider – First and foremost, you must inform the insurer at the earliest and you must submit a completed claim form along with the required documents to the insurance company before sending the car to the garage for any repairs. Forms are available on the websites of insurance service providers. Most insurers follow strict guidelines and this is mentioned in the policy documentation.
  • FIR Lodge – In some cases a First Information Report (FIR) is required, so file the FIR at the nearest police station for the safest side. Although not mandatory for claims settlements, it is advisable to file an FIR. It depends on the state.
  • Assess the damage – Once you notify the insurance service provider, they will appoint an adjuster who will assess/assess your vehicle damage. He will prepare a report and send it to the insurance company. You will also receive a copy and then you can move your car to the nearest network garage for repair.
  • Settlement of claims – As soon as the insurance company receives the investigation report, it analyzes the claim request and sends an approval to the garage. The garage must provide an estimate of the cost of repairing the vehicle and the timeframe for it. The insurer will contact the network garage to get an overview of the extent of the damage and the progress of the repair work.

Once the work is complete, you will need to remove the duly signed invoices and documents from the garage and give them to the surveyor. The adjuster will send it to the insurance company.

If all the documents are completed, the insurer reimburses your bills. Keep in mind that there will be mandatory deductible and variable deductible items as stated in the policy document. Once your claim has been settled and your car is in good condition, you can get back on the road.

Auto Insurance Claims Procedure for a Third Party Claim:-If you are responsible for an accident where a third party suffers injury or property damage, here is what you must do:

  • Inform the insurance service provider – First and foremost, you must inform your service provider at the earliest. Also remember not to make any financial commitments to third parties.
  • FIR Lodge – File the FIR at the nearest police station and also keep a copy of the FIR for future reference.
  • Share Policy Document – You must share a copy of your car insurance policy with the third party, so that he can assert a claim.
  • Automobile court claim – In accordance with the Motor Vehicle Act 1988, third party liability claims are made to the Motor Accident Claims Tribunal (MACT). The claim may be brought by the third party before the court closest to his domicile or to yours.

After receiving all the documents, the insurance service provider will check the documents and assess the accident and if found satisfactory, you will get an attorney appointed by them.

If the court orders you to pay the damages to the third party later, the insurance service company will pay the premiums directly to the third party.

It should be seen whether the situation can be settled amicably outside the court.

Claims for theft: If you find that your car has been stolen, follow the procedure below.

  • FIR Lodge – File the FIR at the nearest police station and also keep a copy of the FIR for future reference.
  • Inform the insurance service provider – You must inform your service provider at the earliest with a copy of the FIR
  • Once you receive the final report from the police station, make a copy and submit it to your insurance company. The insurance company will appoint an investigator. The investigator will write the report and submit it to the insurance company. Once done, submit the RC book of your stolen car to the insurance company.

  • Submit duplicate car keys and a letter of subrogation. You will also need to submit a notarized indemnity on a stamp paper as well.

  • Once all the formalities have been completed, the insurance company will pay the claim.

It is very important for us to know the formalities of car insurance claim procedure, otherwise many people pay out of pocket due to lack of such information. Nowadays, the entire insurance service provider has a very good customer support network and their teams are knowledgeable and cooperative, so you need to communicate with your insurer whenever you need.

I hope you don’t need these procedures. I wish you had a Safe Drive, someone is waiting for you.

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