What Is an Insurance Claim?
Definition
A formal insurance claim is a demand for payment from someone to their policy provider. If the incident is covered under the policy, then a claim can be filed. Payment from a claim is usually used to replace or repair the property or to pay for health care costs associated with an accident.
Definitions and examples of insurance claims
A claim is basically an inquiry to your provider. A claim is a request to your insurance company to declare damage to your property and injuries or any other incidents that may result in an award. Only one of the listed perils in your policy can be accepted. The policy will protect and compensate you for any losses or damages. A claim is a request to the payment of your portion of the cost in the event that you are able to pay.
In the case of example, if for instance you’re insured for collisions and you get involved in an accident with a driver then you’ll need to submit a claim to your car insurance company to pay (or pay) the costs that stem from the incident so you don’t need to pay out of the pocket.
What is an insurance claim? How does it Work?
Many factors dictate what the claims process you are going to run like. It could include sending out documents in person, calling a representative using the company’s app or any combination of these actions.
The way you claim depends on how much you have to pay before your provider does, called the “deductible.” Your provider will pay the rest of the cost. You pay your deductible. To learn more about the coverage you have in your base check out the declaration page of your policy.
The kind of claim you have will also affect the way your claims will be handled. It isn’t easy to file a claim for your home or personal property. It is possible to meet with adjusters. You may have to meet with them, obtain estimates accepted, or repair or replace things as well as have to meet with them. It is possible that you are not involved in the process of obtaining health insurance.
Payments are contingent on your policy
Before beginning the claims process, you may want to know how your service will settle for a claim. You might have heard of someone who was compensated more than another person for the exact same loss or damage. Many think this is due to the fact that the other person has a better provider. This is not always true. When you buy your policy you have the option of choosing the coverage options that you want. The person who received more cash from their claims could have to pay a higher cost for greater coverage.
This is the reason it is important to know what costs such as personal property, insurance, and contents are protected. Also, find out what restrictions or limitations. Take note of the particulars of the items you are insuring and also. If you purchase homeowners insurance and you have other structures located on your property, you must determine whether your policy will cover any claims in connection with those structures and their contents.
Motor Vehicle Insurance is compulsory in India as per the Motor Vehicle Act 1988. Motor vehicle insurance covers the third-party risks that arise from the usage of motor vehicles and also the possibility of vehicle damage. Indians are not concerned about Life Insurance Plan or Medical Insurance, but Motor Vehicle Insurance is more important to them. It is mandatory otherwise if someone is injured while driving without insurance is considered to be a Crime.
Today, everybody has their own car. The roads are crowded with vehicles. The danger is high, as a result, motor insurance companies are growing each day, and claims are also going up. Yet, often the policyholders don’t know what they need to do to obtain their Car Insurance Claim Procedure. We will show you how to file a claim for your car insurance policy. This can be extremely helpful.
How do you file a claim for your Car Insurance Claim
This will make it very simple for us to understand the steps in a given situation.
Claimants for damage to their own property
If your car was involved in an accident, you must follow these steps to make a claim for damages:
Inform the insurance company
In the first place, you must inform the insurer at the earliest and you need to send a correctly filled in claim form along with all required documentation to the insurance company before you take the vehicle to the garage for repairs. These forms can be found on the websites of insurance companies. Most insurers follow strict guidelines and its included in the policy document.
Lodge FIR
In certain cases, it is necessary to file a First Information Report (FIR), is mandatory. To ensure your safety You can file an FIR at your nearest police station. Although it’s not mandatory for claim settlements but it is advisable to lodge an FIR. It’s dependent on the situation.
Examine the extent of damage
Once you have informed your insurance company that you have done so, they will assign a surveyor assess and evaluate the vehicle’s damage. He will then prepare the report and then pass it on to the insurance provider. In addition, you will receive an exact copy, and you can take your vehicle to the nearest network garage for repair.Note: If the damage is severe then surveyors will arrive at the scene of the collision at the earliest for inspection.
Claim settlement
When the survey report has been accepted by the insurance company will then review the claim and then approve the garage. The garage has to offer an estimate of the cost for the vehicle repair and timelines to complete the repair. For a complete view of the vehicle’s damage and how the repairs are proceeding the insurer should contact the garage in the network.
After the work is completed after the work has been completed, collect the signed and dated bills and other documents out of the garage and send them to surveyor. Surveyor will forward it to the insurance firm.
If all documents are completed, the insurance provider will reimburse your bills. It is important to keep in mind that your policy will define the obligatory deductible and variable-deductible components. After your claim is paid and your car is in good working order you are able to begin driving again.
Third-party car insurance claim process If you’re responsible for an accident where the other party suffers injury or property damage then here’s the procedure to follow:
Contact an insurance company
It is important to notify your provider of the problem as quickly as you can. Don’t make financial commitments to any third person.
Lodge FIR
To be able to refer back later, file an FIR at the closest police station and keep the original.
Share policy document
To allow third parties to file a claim it is recommended to share a copy your car insurance policy.
Claim in Motor Tribunal
According to the Motor Vehicles Act 1988, third-party liability claims are filed with the Motor Accident Claims Tribunal (MACT). The third party or you can make a claim to the tribunal nearest to your home.
After you have received all the documentation, the insurance service provider will examine the documentation and determine the accident and if found satisfactory, you’ll be given a lawyer chosen by them.
The court may order you to pay for damages to the third person. In this case the insurance company would pay the fees directly to the third person. It is advisable to see if the situation can be settled amicably outside the tribunal.
Claimants for theft
If you find that your car was stolen , then follow this procedure.
Lodge FIR
For future reference, you can file an FIR at the nearest station of police and keep the original.
Contact an insurance company
It is important to notify your service provider at the earliest possible time, along with a copy the FIR
Once you receive the final report from police station, you must make a copy of it and submit the report to your insurance company. Insurance company assigns an investigator. The investigator will write the report and then send it to the insurance company. Once that is done you can forward the RC book of the car you have stolen to the insurance company.
Send duplicate keys to the car as well as a subrogation note. A notarized indemnity must be filed on a stamp paper. Once all formalities are completed, the insurance company will pay the claim.
It is crucial for us to know about the requirements of a car insurance claim procedures, as lots of people pay out of their pocket due to lack of these information. Nowadays, every insurance company has a very good customer support network and their teams are highly skilled and cooperative, therefore you need to contact your insurance company whenever you require it.
Car Insurance Claim Settlement FAQs
How is a claim settled in the case of theft of the insured vehicle?
You can make a claim in the event that a vehicle is stolen. Follow these steps:
- 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 police cannot find the vehicle insured within the specified time frame, a court will issue a Non Objection Certificate.
- 3. After the issuance of a NOC after which the insurer begins an investigation on its own to track the vehicle. If the insurer fails to locate the vehicle, the claim settlement process begins. Step 4: It is considered theft. complete loss, the insurer will provide you with the IDV of the vehicle after deducting any applicable deductibles.
Where can I find the nearest garage associated with my insurance?
You can dial the customer service phone number of your insurance provider to find the nearest garage that is authorized by the company. Also, you can look up the official website. This option can be found in the section on claims on the website under the name “list of garages in the network”.
What time and where do I need to submit the documents?
If the vehicle is in the garage to be repaired, policyholders must provide the required documentation to the surveyor.
What is the role played by the surveyor in the settlement process?
Any policyholder is eligible to make a claim, and the insurance company will dispatch a surveyor to inspect your vehicle to assess the extent of damage. The surveyor submits an assessment of the amount of the damage to the insurance company in order to settle the claim.
What if an insurance policy expired one day before the accident?
You are not able to submit a claim for car insurance if the policy has expired. It is therefore crucial to renew your policy on time as no claim will be granted under the policy that is expired.
What are the required documents to register a claim?
You’ll require a copy FIR (in the event of an accident) as well as ID proof, Address proof and policy details for the purpose of registering an insurance claim.
Is car insurance covered for natural disasters?
Yes, natural disasters like flood, cyclone, earthquake, hurricane etc. are protected under Comprehensive as well as Standalone Own-Damage car insurance plans.
What exactly is No Claim Bonus?
The insurer will offer the No Claim Bonus to policyholders who renew their insurance policy. This bonus is a reward for not making any claims during the term of the policy.
When is a claim paid in cash?
A claim is able to be settled cashless when it is processed at an insurance network garage.
Additional Resource:
https://www.iii.org/article/what-auto-insurance
https://www.libertymutual.com/vehicle/auto-insurance
https://www.geico.com/auto-insurance/
