The motor claim settlement process can broadly be divided into several key stages, each requiring prompt action and accurate documentation from the policyholder.
1. Immediate Actions Post-Incident:
- Prioritize Safety: First and foremost, ensure the safety of all individuals involved. Provide first aid if necessary and move the vehicle to a safe spot if possible and legal to do so without further risk.
- Inform the Police (if necessary): For major accidents involving third-party injury, death, or significant property damage, or in cases of theft, immediately inform the police and file a First Information Report (FIR). Keep a copy of the FIR as it’s a critical document for your claim. While not mandatory for minor own-damage claims, it’s always advisable if there’s any ambiguity or dispute.
- Do Not Admit Guilt: Refrain from admitting fault or liability at the accident scene. Let the authorities and the insurance surveyor determine the cause.
- Gather Evidence: Take clear photographs and videos of the accident scene, including vehicle positions, damage to all vehicles involved, road conditions, and any injuries. Note down details of other vehicles/drivers involved (registration number, driver’s license, insurance details), and contact information of any witnesses.
2. Intimating Your Insurer:
- Prompt Notification: This is a crucial step. Inform your insurance provider about the incident as soon as possible, ideally within 24-48 hours. Most insurers offer 24/7 helplines, online portals, or mobile apps for claim intimation. Provide them with your policy number, vehicle details, date, time, and a brief description of the incident.
- Claim Reference Number: Upon successful intimation, you will receive a claim reference number. Keep this handy for all future communication.
3. Vehicle Inspection and Damage Assessment:
- Surveyor Appointment: The insurer will appoint a surveyor (also known as a loss assessor) to inspect your damaged vehicle. As per IRDAI guidelines, a surveyor must generally be appointed within 72 hours of claim intimation.
- Inspection: The surveyor will assess the extent of the damage, verify the cause of the loss, and prepare a detailed report.
- No Repairs Before Inspection: It is imperative not to start any repair work on your vehicle before the surveyor completes their inspection and provides a green light, as this can lead to claim rejection.
4. Document Submission:
You will need to submit a set of documents to your insurer, typically including:
- Duly filled and signed claim form
- Copy of your Motor Insurance Policy
- Copy of Vehicle Registration Certificate (RC)
- Copy of Driving License (of the person driving at the time of the incident)
- FIR copy (if applicable, especially for theft, third-party injury/death, or major accidents)
- Repair estimates from the garage (if opting for reimbursement)
- Original repair bills and payment receipts (for reimbursement claims)
- Cancelled Cheque (for reimbursement credit)
- Additional documents may be required for specific scenarios like theft (e.g., ‘Non-Traceable Report’ from Police, RTO letter of “non-use,” original keys).
- For total loss/theft claims, the Registration Certificate (RC) may need to be submitted to the insurer for cancellation.
5. Repair and Claim Settlement:
There are generally two modes of claim settlement:
- Cashless Claim Settlement: If you choose a network garage (one that has a tie-up with your insurer), the insurer directly settles the repair bills with the garage, minus your applicable deductibles (compulsory and voluntary excess) and depreciation (if Zero Depreciation add-on is not opted for). This is often the preferred and most convenient option.
- Reimbursement Claim Settlement: If you get your vehicle repaired at a non-network garage of your choice, you will have to pay the repair bills upfront. After submitting the original bills and receipts to the insurer, they will reimburse the approved claim amount to your bank account.
- IRDAI Timelines: As per IRDAI guidelines, insurers are generally mandated to acknowledge a claim within 3 days, surveyors must submit their report within 30 days of inspection, and claims must be settled within 30 days of receiving all necessary documents. Delays beyond this period may entail penalty interest.
6. Claim Closure:
Once the repairs are completed and the payment is processed (either to the garage or to you), the claim is officially closed. Review the work done to ensure satisfaction before taking delivery of your vehicle.
Crucial Points to Remember for a Smooth Process:
- Read Your Policy Document: Understand your policy’s terms, conditions, deductibles, exclusions, and add-ons (like Zero Depreciation or NCB Protection) beforehand.
- Beware of Depreciation: A standard policy deducts depreciation on parts. A “Zero Depreciation” add-on eliminates this, leading to a higher payout in Indian Rupees.
- No-Claim Bonus (NCB) Impact: Filing a claim, even a minor one, will usually reset your accumulated NCB to zero, increasing your premium for the next renewal. Consider paying for minor damages out-of-pocket if the repair cost is less than your NCB savings. The “NCB Protection” add-on can safeguard your NCB for a limited number of claims.
- Timely Renewal: Ensure your policy is renewed before its expiry date. A lapsed policy (especially beyond 90 days of expiry) can lead to loss of NCB and complexities in claim processing.
The Motor Claim Settlement Process, while detailed, is designed to protect policyholders. By being prepared, acting promptly, and understanding the steps involved, you can navigate it efficiently and ensure your vehicle is back on the road with minimal financial strain.