Steps to Claim Insurance for Minor Car Accidents: Explained in Detail
Key Highlights:
- It is important to notify the insurer immediately in the event of a road accident, as even minor damage can lead to future issues if not reported.
- Most policies have a deductible amount, which the policyholder must pay before the insurer covers the rest of the repair costs.
- If all documents are in order, minor accident claims are usually settled within 7 to 15 days for cashless repairs.
A minor accident could be termed an incident in which the vehicle suffers only small dents, scratches or broken cosmetic parts that do not affect the car’s regular operation. These accidents seldom cause serious injuries or harm to public property, and occur while parking, reversing or driving in slow traffic. Even if the situation is not serious, filing an insurance claim is important as it helps keep the car in good condition for the long haul.
Types of Car Insurance Policies in India
In India, car insurance is generally classified into two types: third-party policies, mandated by law, provide coverage for damages caused by the insured car to another person or their property. However, it does not cover the damage to the insured car. A comprehensive insurance policy, on the other hand, covers both third-party losses as well as damage to the insured car. As an add-on, comprehensive insurance can be strengthened through bumper-to-bumper or zero depreciation coverage, which promises the full repair costs of affected parts.
Immediate Steps After a Minor Accident
Regardless of the degree, the priority is to remain calm and check if anyone is hurt immediately after an accident. Afterwards, the vehicle should be moved to a secure spot so that it does not obstruct traffic. It is important to be present at the scene (fleeing invites legal troubles).
The owner should take photos of the damage to their car and any other vehicle involved, in a way that the cause of the accident is self-explanatory. These pictures act as evidence documents during the insurance claim. It is also wise to note down key details such as the time, place and names of any witnesses. In situations of heated arguments, potential for conflicts or injury to another person, filing a police report is advisable.
Notifying the Insurance Company
After the situation is brought under control, the next step is to contact the insurance company. Most insurers need to be updated right away, or at least within 24 hours. The report can be made through the company’s toll-free number, smartphone app or official website.
The policyholder must ensure the correct and complete information is shared, as hiding or changing any facts afterwards may result in claim denial. Once the report is received, the insurer will issue a claim reference number (this is needed throughout the process).
Inspection and Damage Assessment
After the claim is notified, the insurance company assigns a surveyor to examine the damage. The surveyor’s duty is to assess the extent of damage and estimate the cost of repairs. It is essential to note that the vehicle must not be repaired before the inspection, unless the insurer provides permission. The surveyor usually visits the accident site or the workshop to take photographs and prepare a detailed report. The insurance company determines the claim amount according to the policy terms once the surveyor shares this report.
Choosing the Right Workshop
Owners can have their vehicle repaired at any authorised workshop, but it is usually better to rely on a service centre approved by the insurance company. The advantages include direct cashless repairs. Meanwhile, at a ‘non-network garage,’ the owner has to pay the repair amount in full and later request reimbursement by submitting the relevant receipts. Cashless repairs are always convenient, especially for small damages.
Documents for Processing an Insurance Claim
To process an insurance claim, one needs to submit specific documents to the insurance company. These include:
- Insurance claim form (filled and signed)
- Copy of car insurance policy
- Registration certificate
- Driving licence
- Photos of the damage
- FIR or General Diary entry, if the police were informed
- Repair bills in case of reimbursement
Claim Settlement
After the insurance company checks the relevant documents and the surveyor’s report, the claim amount is determined. In a cashless claim, the owner may still need to cover a small part, such as depreciation or processing, as mentioned in the policy terms. In a reimbursement, the policyholder pays for the repairs upfront and then receives the approved amount after any applicable deductions. Most insurers process minor claims within a few working days, provided all documents are complete.
No Claim Bonus
No Claim Bonus rewards policyholders for not claiming previously in the policy year. Even a minor claim could nullify this bonus, which can otherwise promise a significant discount on future premiums. In such situations, some owners choose to pay for minor repairs themselves rather than compromising their No Claim Bonus. Comparing repair costs with the bonus helps make a sensible choice.
Handling Disputes or Delays
If a policyholder feels the insurance company has unfairly delayed or denied their claim, they can lodge a complaint using the ‘insurer’s grievance redressal system’. If the complaint is not resolved, it can be further taken to the Insurance Ombudsman. The Ombudsman offers a free and impartial solution to ending disputes. Strong documentation and evidence are vital in achieving favourable results.
Common Mistakes to Avoid
Informing the insurer late may be considered negligence. Repairing damages before the surveyor's inspection also raises red flags. Needless to mention, the documents submitted should be complete and accurate. Being honest and following the insurer’s instructions makes the process smooth and efficient. Always read the insurance policy’s terms and conditions to avoid overexpectations or disappointment.
Making the Right Call
Filing a car insurance claim for a minor accident is pretty straightforward if one acts quickly, maintains precise records and works within the instructions of the insurer. Even in minor accidents, making an insurance claim in the right way preserves the car’s condition and shields the owner from unexpected costs. This also fulfils the main purpose of insurance: to provide peace of mind and financial security while driving. Accidents can happen due to multiple reasons, but one shouldn’t fail to act responsibly afterwards.
FAQs
1. Should I inform the insurance company even for minor accidents?
Yes, it is important to notify your insurer immediately. Even minor damages can lead to future issues if not reported.
2. How soon should I report a minor accident?
Most insurers require reporting within 24 to 48 hours. Prompt reporting ensures smoother claim processing.
3. Do I need to file a police report for a minor accident?
It is not mandatory for minor damages without third-party involvement in some states. However, if there is a third-party vehicle involved or injury, filing an FIR is required.
4. How does the claim process start?
You start by calling your insurer or registering the claim online. An insurance representative may inspect your vehicle and advise on repair procedures.
5. What if I delay the claim?
Delaying the claim can lead to rejection, reduced coverage, or complications during the repair process. Always notify your insurer promptly.