Here is what you should Do For Your Auto Insurance?// Car Insurance Claim.

The Rise Of The Automobile Industry in India. 

Motor insurance or Auto Insurance is a necessity of every vehicle, particularly if you are a regular driver. Although you are careful on the road, chances of an accident never abate. To reduce financial loss and avoid legal trouble, motor insurance is a must.

What is Car Insurance?

Car insurance, or motor insurance, is a brand which safeguards you from losing money to repair or damage your car or somebody's vehicles or properties.

There are various types of car insurance policies at hand such as comprehensive car insurance, third party car insurance and commercial vehicle insurance. Every vehicle owner in India must have possessed at least a third party car Insurance.

Do I Need Auto Insurance?

Purchasing a trustworthy car insurance is an important financial kickoff to take as a vehicle owner. As per the Motor Vehicle Act, a third party insurance is mandatory for every vehicle and you should buy it irrespective of new or used car.

You can also buy a comprehensive cover policy. A comprehensive coverage insurance policy protects the vehicle against damage due to accidents, fire, theft or any natural calamities.

 Main reasons for insure your car are discussed below:

1.Loss or damage:

If your car is damaged due to an accident  or self-ignition or suffers damage owing to vandalism, strikes, riots or terrorism, you are safeguarded because your insurance policy covers all of these. Another benefit of car insurance is, it covers loss or damage during transit by road, rail, inland waterways, or by air.

2.Personal accident cover:

Another benefit of car insurance is, it facilitates personal accident cover for a predetermined amount. Personal accident cover gives protection against permanent  disability and accidental death. Moreover, personal accident covers facilitates other passengers also for a predefined amount under the car insurance policy.

3.Third party liability:

When your car collides with another car and consequently a third party's car is damaged, it is covered by the car insurance policy. Moreover, in case of bodily injury or death of a third party and consequently face any legal liability, your car insurance policy defends you.

4.Large network of garages Facility:

 This is a very useful feature because you can take cashless facilities if required for any repair of your car. This is possible due to the large network of garages.

 

5.No claim bonus:

 No Claim Bonus or NCB are very useful features of car insurance policy. Policyholders are entitled to get this benefit for every claim-free year. They can enjoy this facility as a discount on the premium, making car insurance more logical.

CAR INSURANCE CLAIM can be made in two ways : 1) Cashless;

                 2) Reimbursement.

Cashless:- 

If you wish to claim cashless, an investigator of the Insurance company will inspect your vehicle. Now, you get your car repaired at a network garage without paying for the job in addition to the applicable cost.

Reimbursement:- 

In case of reimbursement claim you need to make payment first to a non-network garage. After completion of the repairing job, You can submit the invoice and a job sheet of the workshop to your insurer to settle the claim.

When your car insurer refuses to pay for an accident?

 Reasons for Car Insurance Claim Denial:

Situations may arise when your insurance company refuses to cover someone else driving your car.

1.Accidental damage for drunk driving:

When insurers find you driving under the influence of drugs or alcohol or without a valid license, your accidental damage claim will not be entertained.

2.Use of private vehicle for commercial purposes:

When your private vehicle is used commercially, and gets damaged, the insurer may deny the claim because different laws and different sets of premiums are applicable for commercial vehicles. 

3.Any modifications or Installations were added without knowledge of Insurer:-

In case you made any alterations or any modifications of your vehicle, it should be informed to the insurer before renewing it. After examining the vehicle, the insurer will add the changes in your policy with extra premium. If you don't record it in your policy, there is a chance for refusal of your claim.

4.Inability to produce documents:

Usually, at the time of Insurance claim the Insurer asks for a few key documents such as Insurance policy Certificate, Vehicle Registration Certificate (RC), Valid Driving Licence, FIR copy in case of theft, Aadhaar card of both Driver and Owner. If the owner is unable to produce any one of them, the claim may be rejected.

5.Damage for self-negligence:

If it is proved that your vehicle is recklessly parked at no parking areas and collides with another car, your claim may be denied.

6.When someone takes your car without your permission:

If anyone drives your car without getting your consent then your claim may be rejected.

Conclusion:

Unfortunately India ranks high for road accidents and accidental deaths. Buying capacity of Individuals has increased. So, the number of vehicles on the road has increased a lot. But infrastructure facilities remain more or less unchanged. So the vehicle owners are facing troubles on the road.

This kind of situation emphasises the importance of auto insurance.

FAQ

1.Do I need to inform the local police about the car accident?

Ans: Yes, definitely. You should file an FIR at the nearest police station where the accident had taken place. Get the FIR copy and produce it to your car insurance company.

2.Are Car Accident Insurance Settlements Taxable?

Nevertheless, a few settlements towards compensation for your medical bills or for pain and sufferings and damage to your property are not taxable, a few settlements of car accidents are taxable.