As per a report from the Ministry of Road Transport and Highways (MoRTH), more than 400 accidents happen daily in India. A car accident can be a stressful situation, whether it is a minor dent or a major collision. This is where your car insurance policy comes into play. Knowing the role of car insurance after an accident can be helpful to ease the claim settlement process and reduce your stress. Read on to understand how car insurance works after an accident, the claim process, and the documents you need.
What is the Role of Car Insurance in Case of an Accident?
Car insurance plays an important role after an accident or a collision. It reduces the financial stress, covers repair costs, third-party liabilities, total loss, theft, and also offers a personal accident (PA) cover of up to ₹15 lakhs for the driver-owner. Ultimately, car insurance ensures you do not have to bear the financial burden and protects you from several risks. It covers legal complications in case of third-party person or property damage, damages incurred due to accidents, natural disasters, man-made disasters, theft, fire, and more. Insurers also offer cashless garages and an easy digital claim process to simplify the process of filing and settling claims.
How to File a Car Insurance Claim?
After an accident, you must prioritise your safety and any other party involved. Once you have ensured that everyone is safe, follow the steps mentioned below to file a car insurance claim:
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Inform the Insurer Immediately
You must instantly report the accident to your car insurance company using the customer service helpline, mobile application, or official website. Provide all the required details like policy number, location, and explain the whole scenario to them.
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Record Evidence and File an FIR
Take clear photos and videos of the accident, damages incurred by the insured vehicle, and all other relevant details. You must also file an FIR at the nearest police station in case of any third-party liabilities.
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Fill out the Form
Fill out the claim form carefully and submit it along with all the required documents, such as driving licence, vehicle registration certificate, copy of your insurance policy, FIR (if applicable), etc.
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Surveyor Assessment
The insurance company will appoint a surveyor to assess the damage and inspect the car. The surveyor will prepare and submit the report. Your car will then be sent to an authorised network garage, and an estimate will be shared.
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Repair and Claim Settlement
The insured car will be repaired at the network garage, and the claim will be settled. In case your car is repaired at a non-network garage for any reason, you must apply for a reimbursement claim.
Documents Required for Car Insurance Claim
You must submit the following documents to file a car insurance claim:
- Copy of car insurance policy
- Valid driving licence
- Vehicle registration certificate (RC)
- FIR or police report in case of major accidents, theft, or third-party damage
- Duly filled and signed claim form
- Any relevant photos or videos
- Repair bills and payment receipts (for reimbursement claims)
Common Mistakes to Avoid While Filing an Accident Claim
Now that you have understood how car insurance works after an accident, it is also important to be aware of the common mistakes you must avoid while filing a car insurance claim. Take a look:
- Delaying Notification to the Insurer: If you delay informing the insurance company after the accident, it may result in claim rejection.
- Not filing an FIR when required: In case of major accidents, third-party injuries, theft, or significant property damage, filing a police FIR is mandatory. Failing to do so can also cause complications or claim denial, as it is a compulsory document you must submit.
- Repairing Before Inspection: If you get the insured vehicle repaired before the approval from the surveyor, your insurer may not accept even the reimbursement claim. It is important to always get the damages assessed before getting your car repaired after an accident.
- Providing Incomplete or Incorrect Details: Any mismatch in accident details, documents, or statements can slow down your claim process and even lead to rejection. You must fill out the paperwork thoroughly to avoid any such mistakes.
- Not Having Sufficient Proof: Do not forget to take photos and videos of the accident scene, damages, and surroundings to avoid a lack of proper evidence.
What is the Difference between a Cashless Claim and a Reimbursement Claim?
After an accident or any mishap, you can choose from the two types of car insurance claim settlement processes- cashless or reimbursement.
As the name suggests, in a cashless car insurance claim, you do not have to pay up front for damage repair. Your vehicle is repaired at an authorised network garage of the insurer. Whereas, if your vehicle is repaired at a non-network garage, you must pay the repair bill yourself and submit the bills and documents to the insurer for reimbursement of your car insurance claim. However, you must note that both the car insurance claim settlement scenarios follow the same survey and approval process, with a different payout.
Wrapping Up
Understanding how car insurance works after an accident helps you to take the right steps, file claims correctly, and avoid unnecessary expenses. Whether it is third-party liability or own-damage repair, car insurance policy provides the necessary financial protection. By staying informed about claim procedures and policy terms, you can ensure a smooth and stress-free experience after an accident.
