Demystifying Motor Insurance Claims: A Comprehensive Guide

We rely significantly on our cars for our daily routine and they are an essential component of our lives. In the wake of the pandemic, people are now relying more and more on their own cars as a safety precaution by shunning taxi services and public transportation.

It is likely that if you own a car, you have third-party insurance, which is required by law, or comprehensive automobile insurance. Motor insurance has grown to be one of the most sought-after insurance products as a result of the enormous number of individuals purchasing personal vehicles, which also leads to a significant number of claims each year.

The majority of us are taken aback when we see our first auto accident. This article's goal is to provide readers with more knowledge regarding auto insurance claims.

 Cashless claims and reimbursement claims are the two main categories into which motor insurance claims are usually divided.

Cashless Claims: Should your car sustain damage that requires additional repairs, you won't be required to pay for those repairs up front with cashless claims. The costs incurred for the network garage repair are paid for by the insurer directly. Only the appropriate deductible and depreciation are your responsibility as the customer.

The age and component of the car affect the percentage of depreciation. A portion of fiber glass, for instance, has 30% degradation. Therefore, in the event that this specific part needs to be replaced due to damage, the insurer will cover 70% of the cost; the policyholder would be responsible for the remaining 30%.

The amount the insured must pay as a deductible prior to the start of the insurance coverage. In the event that the insured has a claim for INR 6,000 and the mandatory deductible is INR 2,000, the insured is responsible for paying the first INR 2,000, with the insurer covering the remaining INR 4,000.

For the policyholder, cashless settlement is generally a simple and easy process.

Compensation Allegations - In the event that your car sustains damage, you can have it fixed at any garage (outside of network garages) under compensation claims. You will be responsible for paying for the repairs and submitting an application to the insurance company for reimbursement later. Make sure you collect all of the workshop's repair invoices and receipts. After confirming the accuracy of the bills and claim paperwork, the insurer will pay.

Based on the incidence, there are three categories of claims under car insurance:

Third Party (TP): In India, the law requires third party insurance. The coverage offered by TP is intended to shield you from third-party lawsuits alleging that your vehicle caused them harm or damage. You and your car are not covered by the TP section. A third party who was harmed, had property damaged, or lost their life as a result of your car may file a claim for compensation under the TP section. There is no cap on compensation in cases of death or injury; a court will determine the exact sum. If you are involved in an accident as a third party, you must:As soon as possible, report a crime and get the vehicle owner's details for TP insurance. You must submit a compensation claim to the Motor Accident Claims Tribunal (MACT). You have the option to file your claim in your hometown or the location of the accident.

The following are the main claims you can make: Payment for physical disfigurement

•  Payment for income lost as a result of a disability  Health care costs
•  Deterioration of property

If you pass away as a result of the accident, your dependents may be eligible to receive compensation.

Own damage (OD): When an accident damages your vehicle, OD claims begin to run. Notifying your insurer and the police is the first thing to do. Without the permission of the police and your insurance company, you should not remove your car from the scene of the collision. You can take the car for restoration when you get permission to remove it from the accident scene, and the insurance company will pay you either cashlessly or through reimbursement.

Theft: Should your car be taken, you must file a police report, notify your insurance company, and notify the RTO of the theft. The insurance company will need copies of your driver's license, vehicle registration certificate, and police report, among other documents. The police will look into the situation; nevertheless, they will file a no trace report if your car cannot be located within 90 days. In the event of theft, a no trace report is required to resolve the claim. The insurer will begin the claim settlement process as soon as you send in the report and the necessary documentation.

Digitalized Procedure for Claims

The insurance sector is increasingly digitizing and utilizing scientific technologies to expedite the payment of claims. On-the-spot settlement is one such innovation in claim settlement that is carried out via the insurer's website or app. To submit images of the damage to their vehicle, the insured just needs to take them with their phone and upload them to the insurer's app or website. With the use of these images and data analytics technologies, insurers determine a claim value that, if accepted by the insured, can be resolved in less than twenty minutes. With the help of these advancements, insured parties may quickly settle their claims and get their cars fixed without having to worry about paying for them. 

Author -Mr.T A Ramalingam, Chief Technical Officer, Bajaj Allianz General Insurance