Car Insurance Claims

Situations to raise a Car insurance claim

What is the next step after an accident? Is it about raising claim? Not all times when the policyholder’s car meets an accident, there needs to be a claim requested. The policyholder has to think a while before applying for the claim. In certain situations, there are many other solutions other than an insurance claim. Certain factors must be considered before deciding on making car insurance claims. 

No-claim Bonus ( NCB ) – It is an effective add-on that can be attached to car insurance policies. By this add-on, there is a cut off discount provided for the policyholder at the time renewal if there isn’t any claim made in the previous policy tenure. Incase the policyholder has made a claim in the tenure, then the individual will lose the no claim bonus advantage and will have to pay the actual renewal amount. The no-claim bonus keeps increasing up to 50%, thus making it an economic advantage. The insurer cannot let go of this advantage, so he/she must be cautious about making claim requests. 

Depreciation – Every vehicle faces wear and tear effects every day. The value of the car and the parts decrease as time pass by. In case there is a damaged part, then the insurance firm doesn’t provide the full coverage amount. The depreciation factor attached with the vehicle decreases the compensation amount for the claim. 

Deductible – During a car insurance claim, a part of the money should be paid by the policyholder from their own pocket. Anyways there is a mandatory contribution to be done by the policyholder. In certain cases more than the insurance firm’s coverage amount, the policyholder has to invest an even more money.

Car insurance Claim 

The previous section of the blog had the factors to be considered before making a car insurance claim. Hence before making a car insurance claim, one should make a calculative study on the depreciation and deductibles. In addition, the policyholder must also consider the validity status of the No claim bonus add-on. While considering such factors, one can easily choose whether to make a claim or not. 

For example, 

If the claim amount is Rs 3000, and the no claim bonus is worth Rs 3500, then by making a claim one is going to lose Rs 500. If the claim is made, then NCB value becomes 0. 

One must understand that car insurance claims must be requested only on any kind of major damages. It is a better financial move to repair minor damages without the insurance policy, 

Claims for services done at Unauthorised garages 

Every insurance firm recommends the policyholder a network garage with the list of authorised garages for car service. The insurance company has official tie-up with the service centres. An unauthorised garage is the one not available in the insurance firm’s network garage. It is not practically possible to leave car for service only in authorised service centres. There are chances when the policyholder is put in a situation to leave the car for service in an unauthorised garage. 

There are claim options available relating to such situations. In general, there are two types of claim options for every policyholder, namely cashless and reimbursement. By the cashless claim protocols, one the insurance firm provides direct claim settlements for the services done in the network garage. In the reimbursement claim process, the policyholder has to pay from their pocket for the accidental services and later must submit the bills to the insurance firm to get the money spent. The reimbursement claims are applicable to the services done at unauthorised service centres. 

When the service is done in the network garage, then the insurance firm will contact the service centre regarding the damages of the vehicle. If the service is done in any unauthorised garage, then the insurance firm sends a team of surveyors to examine the damages of the vehicle. The inspection must be complete before the car service process. The service will start only after the approval from the insurance firm. In the end, the reimbursement claim process is completed. 

Survey requirements

The claims raised for services done at any unauthorised centres has several limitations. The service must happen after the inspection of the surveyors sent by the insurance firm. In case the service has been completed before inspection, then the claim request is directly rejected. 

The policyholder must make sure to detail the accident to the surveyor so that they will know the actual requirement. 


The policyholder must understand the benefits of the car insurance policies completely. The individual must take a well informed choice on insurance claim requests. A person’s insurance profile wouldn’t look good with the rejection records in the history. So make sure your claim records are clean and economical.

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