Important Tips To Consider When Claiming A Car Insurance

By Alok Kumar
November 26, 2016
Car Insurance

You recently bought a new car and you drove it extra carefully from the office to your home. But suddenly a reckless driver driving his car at a high speed crashed into your car, causing major damage to your vehicle. As a result, you are depressed and worried about the damage and cost of repairing your new car. Having car insurance can save you from bearing the burden of large expenses in such a situation. In case you have not purchased car insurance, you should know why you should have a policy. Having an insurance policy ensures that the insurance company will cover the minimum damage caused to your car and even damage done to other vehicles in case you had opted for third party insurance.

Importance of Having Car Insurance

Recently there have been some changes made in the Motor Vehicle Act of 1988. As per the new regulations and policies mentioned in the amended version of Motor Vehicle Act 2016, presently it is mandatory for a vehicle owner to opt for auto-insurance whether it is new or used one. If you are driving your car without possessing any insurance, then you are making a big mistake. If you are spotted by traffic police without car insurance, you may have to pay a large fine or your license may even be suspended. Moreover, if you end up in an accident then you would have to bear all the damage expenses for the car, including other damages, on your own. Therefore it’s important for you to purchase your insurance policy when purchasing a car.

Car Insurance

Types of Car Insurance Policies

Basically, there are two types of car insurance policies:

  • Third party policy: Third party policy is a mandatory policy which comes under the Motor Vehicle Act of 1988. It covers damage done to life or property of a third party due to your vehicle.
  • Comprehensive policy: Comprehensive policy is also known as the package policy. It provides wholesome coverage which includes damage done to you, your co-passengers and any third party. The damage can be a result of man-made and natural calamities.

How Does Your Insurance Policy Work

As mentioned above, the main objective of an insurance policy is to provide financial protection for your car, which in India is mainly against the damage done to the car or damage done at the time of an accident. You can assume your car insurance as an annual contract which needs to be renewed every year. You can find the starting as well as terminating time period of your insurance coverage written clearly on your policy documents. So you need to renew your policy before its expiration date to avoid a break in your insurance coverage. A break in your coverage means you will have to buy the policy again which can result in a high premium plan or rejection to offer the same policy again.

How to Claim Your Car Insurance

Claiming insurance at the right time after an accident is very important for you and your car. In some cases, it may so happen that if you unluckily missed any documentation or any inspection required you’d then have to bear all charges out-of-pocket. The overall process is not just complicated but often patience-draining as sometimes you have to commute to the insurance office many times, each visit often requiring some complex documentation. If you feel that the overall process is out of your understanding and it is making you feel stressed, then you are reading the right article.

Rimtimmers will help you in understanding the process clearly. Keep reading to the end in order to understand some important tips to follow regarding the insurance claim process.

When claiming your insurance, you may have to do some paperwork and research since different types of policies require different types of legal formalities. The following are important documents that may be required of you to complete the process:

  • Insurance Papers
  • Original and Photocopy of your driving license
  • Registration Copy Book or RC Card
  • Police FIR copy or Pan
  • Road tax receipt

[NOTE: This article doesn’t claim responsibility for any legal information provided. Information is for general understanding only. Please check with your insurance provider for the documents required in your situation.]

In order to claim your car insurance, make sure you have all of the detailed documents (mentioned above) required of you at the time of filing the claim. Make sure to read the provided documentation carefully which is required for claiming insurance. In the case of theft, you may be required to surrender your car keys to the insurance company in order to make a claim.

Car Insurance Claim

Steps to Follow When Trying to Make Different Types of Claims

Depending on the type of policy you have opted for, below we have classified the different types of claims you can make and have listed some important points you may need to follow.

  • Third party claim – If you want to make a third party claim, make sure to file an immediate FIR or at least a report to the police after any accident. If someone else’s vehicle is involved in the accident and you are a victim, then you’ll need the insurance details of that vehicle and make contact with the insurance provider of that vehicle.
  • Theft claim – In case somebody has stolen your vehicle, then make sure to inform your insurance provider and the police immediately. Also report to the transport department with the detailed information about your vehicle.
  • Own damage claim – If you have been involved in an accident then don’t move the vehicle from the location of the accident unless a police officer has asked you to do it. Inform your insurance provider about the damage and inform the officer. If your policy involves cashless service then the cost of the damage will be paid by your insurance company directly to the repair workshop.

How to Avoid Rejection During Car Insurance Claiming Process

As mentioned above, you have to be careful regarding the overall insurance claiming process as sometimes minor mistakes during documentation may cost you heavily. The following are some important points that you may have to follow in order to avoid rejection of your claim.

  • Take your time to read and understand policy documents carefully (You may get the help of a knowledgeable person regarding this)
  • Immediately inform your car insurance company as a time lag may cost you
  • Make sure to avoid any type of policy lapse by renewing your insurance after the specified time period
  • Ensure that you have valid documents with you at the time of filing the claim
  • Submit the necessary documents at the time of claiming your insurance coverage
  • Make sure to have an intimate talk with your insurance company officer about the policy

To sum up, it is important for you to understand the overall car insurance claiming process before filing a claim. We hope we have succeeded in helping you understand it in a better way.