7 Amazing Tips for a Better Car Insurance Claim-Settlement Process

Posted by Reena More on July 29th, 2019

Car insurance has been made mandatory by the Government of India under the Motor Vehicle Act, 1988. Buying the right car insurance policy is always important because it safeguards you and your vehicle from all the unfortunate situations. So as a car owner and policyholder, you must be well aware of what is and what isn’t covered under your car insurance. If your car gets damaged due to an unfortunate accident, then you should know how to put a claim in a hassle-free way. In this article, we will highlight 7 amazing tips for a better car insurance claim settlement process

7 Amazing tips for a better car insurance claim settlement process

A new car comes with the package of the extra expenses of maintenance and operating cost. However, when any unfortunate accidental experience occurs, your vehicle may get damaged. The best way to deal with such misfortune is by buying car insurance which best suits your car and offers comprehensive coverage. In case of unexpected circumstances, you will be relieved from heavy losses if you have a good car insurance policy. Let’s look at some of the tips for a better claim settlement process.

Take note of details of the accident and damage suffered

It is not just enough to just call the car insurance company about the car accident. You should take down and keep a written record of how, when, and where the accident happened. Try to click pictures of the damage to the car and also note the injuries caused to the other persons involved in the accident.

You will need to prepare proper documentation with all the above-mentioned details. If you organize all the document properly of car damage, F.I.R (policy report), repair bills, etc., then you will have a strong case. This will ensure that your claim for settlement will be passed quickly without much hassle.

Analyze and then finalize the settlement amount

Once you have submitted all your proofs in detail, the time to analyze the loss that has been incurred will be less. For example – On damage to the vehicle and medical care expenses of the passengers. You will be offered a settlement amount by the insurance company. Ensure you have given all the required details for your claim. You don’t want to risk getting an insurance claim which will be lower than the actual damage suffered due to your ignorance of submitting any document or missed out any detail.

Demand letter to the insurer

In the next step, draft a demand letter that clearly states the claim settlement amount and send it across to your car insurance company. The demand letter should point out details of the accident like damages to your car and injuries to the passengers. Details like medical treatment undergone by the passengers must be given if they are covered in the policy. The medical bills, any disability report, loss of income as a result of the loss of work due to accident, etc. should be mentioned in the demand letter. All the details mentioned need to be validated by necessary proofs.

Remember, in case of mentioning the settlement amount, it is important that you put the right amount and support it with proper evidence. This will ensure that the insurance company will have no grounds to deny your claim for inflated or wrong claims.

Check the first offer by the insurer and push for a practical settlement

Once you have submitted your claim request, the insurer will check the claim and accordingly will give out the first settlement offer. If you feel the claim settlement is on the lower side than what you have asked and submitted the proof, then you can ask to revise the claim settlement based on the proofs you have given to the insurance company.

In case the settlement offer is as per your demand and reasonable, then you should accept it.

Get the claim settlement in writing

If the car insurance company calls you to tell you that the claim settlement has been accepted, then you should get the same in writing. You should also ask the insurance company to mention when the settlement amount will be credited in your bank. Having the same in writing will ensure that there is no miscommunication or misunderstanding in the claim agreed amount and process.

Get in touch with Ombudsman or IRDAI for delayed or refusal of the rightful claim

In case the negotiation fails and the insurer refuses you to pay the rightful settlement as per the terms and conditions of the policy, then you should contact the ombudsman or IRDAI. IRDA (Insurance Regulatory and Development Authority) is the regulatory body of insurers in the country. IRDA has made it mandatory for the companies to settle the claims within 30 days of receiving all necessary documents.

Cashless Garage Claims

In today’s day and age, car claims have gone cashless, just like cashless claims in health insurance. The insurance companies are offering cashless garage claim service to its customers to ensure a smooth transition of the claim process. Companies have also started mobile based video recording of accidental damage and online reporting of the accident to ensure there are no discrepancies in the claim report or delay in reporting the accident. This also ensures that the repair work of the car starts ASAP, and it reduces the downtime of the broken car for the policyholder.

The repair work of accidental damage of the car can be done in a network garage and the bill will be paid settled directly with the insurance company by the garage. Insurance companies are also offering additional services like taxi fare for the additional period that the car stays in the garage for repair. Cashless garage facility has made a car insurance claim process better and far more convenient for the claimant.

In a nutshell

The most important thing to do is to get in touch with your insurer ASAP whenever you are involved in an accident and ask them to guide you with the claim process. As mentioned, with the advent of mobile apps, many insurers have intelligent apps that guide you to record and report the car insurance claim instantly. Do keep the above tips in mind to ensure that your car insurance claim process is hassle-free and convenient for you.

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Reena More

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Reena More
Joined: April 9th, 2018
Articles Posted: 13

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