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How to Make Claim on a Motor Insurance Policy

    Mr. C.S. Sudheer | Thursday, July 19,2012, 03:44 PM
 

How to Make Claim on a Motor Insurance Policy

 

Formalities for a motor insurance claim

What Is Third Party Liability in India?

If the car you drive meets with an accident then you have to pay damages to the party which suffers the accident. If you are a college student and don’t have insurance and you were to knock down an elderly person who would foot the medical bills.

You would be able to pay for the car repair charges, medical costs of the occupants of the car damaged through a third party liability policy This premium does not cover the damages you and your car suffer and hence the premiums are cheaper than a comprehensive insurance policy.

What Is A Comprehensive Insurance Policy?

 

Comprehensive insurance policy covers damages suffered by your car and injury suffered by the occupants in your car along with the damages and injury caused to people in other cars. This policy also covers you against theft and burglary of your car and on payment of an additional premium you can cover your music, stereo systems, air conditioners and so on.

 

What Is Meant By Insured Declared Value

This basically measures the sum reclaimed by you if your car should meet with an accident. If your newly bought car were to meet with an accident then the IDV value would be higher than an older car used for 3 years as the depreciation of the car is also taken into account.

The IDV gives the current market value of the car and serves as a measure when claims are made on the value of the car. The registration cost and the insurance costs are excluded from the IDV value and only the accessories which are factory fitted are included and for coverage of new accessories add on premiums need to be paid.

Chart Showing Insured Declared Value Used To Calculate The Current Value Of Your Car Age Of Vehicle

Age Of Vehicle

% Of Depreciation To Calculate IDV

Not Exceeding 6 Months

5

Between 6 Months To 1 Year

15

Between 1 Year To 2 Years

20

Between 2 Years To 3 Years

30

Between 3 Years To 4 Years

40

Between 4 Years To 5 Years

50

 

How to Make That Claim For Your Car If You Are Involved In An Accident?

 

Attend to the injured at the accident site and call family, friends or your lawyer or anyone who can handle the situation. Take a note of the vehicle registration number of the other car involved in the accident.


Be amiable with the other party and share your insurance details with them or if necessary see if you can get covered under their policy. This may be useful if the other party has a very good comprehensive insurance policy.


Collect details of the witnesses of the accident with their names and contact numbers as this would be useful if you have to testify in court.
Remember to file an FIR as this is very necessary for any third party liability. Record all details at the accident site by taking videos using your mobile camera.


Be careful of the statements you make to the police or the Insurer as these can be used against you especially if you are not certain of who exactly is at fault in the accident.


Contact the insurance company within the stipulated time frame and make that claim. Keep all your documents ready as you will need them when you file for your claim.


The documents you need to maintain are a copy of the insurance policy, FIR Report, Filled up claim form, Driving license copy, Vehicle registration copy, Medical receipts, Copy of the estimate for repairs, Original police verified no trace report in case of theft of your vehicle and RTO transfer papers duly signed in case of theft.

Never step out into your car without a comprehensive auto/car insurance policy. This compensates you in case you suffer damage to your car. A third party liability is anyway compulsorily in India.

 

Mr. C.S. Sudheer

Mr C.S.Sudheer is a management graduate. He started his career with ICICI Prudential Life Insurance and later on worked with Howden India. After his brief stint in Howden India, he moved on and incorporated Suvision Holdings Pvt Ltd which is the sole promoter of IndianMoney.com. He aims to build a nation that is financially literate with investment savvy citizens.

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