Motor Insurance in India

Today, I am sharing my experience with Motor insurance claim process in India. Before I start explaining process, Let us understand some of basic thing about a motor policy. 

Motor insurance is mandatory for all types of motor vehicle in India. A vehicle can be used for Commercial and non commercial purpose. Motor insurance is also known as Auto Insurance and Vehicle Insurance.

Its primary use is to provide financial protection against physical damage and/or bodily injury resulting from traffic collisions and against liability that could also arise there from.

It provides accident cover for individual owners of the vehicle while driving and also for passengers and third party legal liability.

There are around 20+ companies in India which offer Motor insurance.  There are few names which are leader in Motor insurance.

 

How to make a Motor Claim

1 - If a vehicle meets with accident first call to public help services such as -

Police by calling at 100 in case of collusion / fire and hit and run case,

Ambulance service 102 / 108 in case of physical injury to any person due to your vehicle. 

Fire department help by calling 101 in case of fire to your vehicle. 

As responsible insured you are required to act your best to reduce loss by doing prompt actions such as trying to defuse fire / helping injured using first aid etc. This action are required from insured as per insurance contract and if insure does not full fill this duty at his best. Insurance company can deny claim. 

2 - Call to insurance company's claims department as soon as vehicle meets with accident. You can find call center number on policy document or company's website. 

Before you call to insurance company make 3 things ready for your reference.

     1. Driving licence number ( who ever drives vehicle)

     2. Vehicle registration details from RC book.

     3. Insurance details like policy number, name of insured.  

Have a brief description of accident ready in 2 to 3 lines. Also ask insurance customer care person that does Insurance company require police complain (FIR) for accident ?

 

If you have taken insurance from Dealer network like Maruti Insurance. Dealer can make claims intimation for your behalf after you have submitted claim request from signed by Policy holder. 

 3 - Register Police complaint - If your insurance company asks you to register a police complain.

1. Write an application to Police station In charge officer , Provide details about the accident, time , place, vehicle number, Chassis number, engine number and all relevant details so It will make easier of police to investigate the accident. 
2. Make two copy of application.
3. Meet with Inspector or Thana in charge with application. Inspector will ask you to submit application with some one in department.
4. Get a receiving stamp on the copy of application from the police officer and ask for General diary number. Remember if the police will not register a FIR at once. They will do it only after investigating crime scene. In that case to register your insurance claim GD number will be sufficient.
5. In case of vehicle theft, you will need a FIR copy GD number will not be enough for claim. (See step )

 4 -  Take your vehicle to Garage authorized by insurance company. If you are able to drive your self that is good or you may tow your vehicle to nearest service station by taking help from crane service. Remember to take a receipt from towing company. You will need it for claim towing charges from insurance company in original.

5.  Once your vehicle is reached to garage a surveyor will be assigned to settle claim by insurance company. Provide all relevant document to surveyor including photo copy of police report (if required).

 6.  Most of the insurance company allow cash less claim settlement for motor claim. But there are few like government company which will not provide cashless settlement for claim in different zone. So confirm with your insurance company about it.

 7.  Based on the surveyor's report garage will prepare a estimated cost of repair and you will need to pay for deduction amount INR 500 or 1000 depends on your vehicle size. Insurance company will pay 50% for plastic part , 100 % for metal and Glass (after considering depreciation), a fixed amount for Towing charges.

 8. In case of complete loss company will pay for the actual value of the vehicle and will take custody of the vehicle.

 9.  In case of theft company will wait for police confirmation report. Generally, police will give stolen vehicle confirmation only after 90 days.  Insurance company will release the claim amount based on Actual value of vehicle after confirmation is received from the police department.  

I hope with will be a help full information.

I have tried my best to provide as much as information. If you feel I have missed some information please put in comments.