Motor insurance is a way to avoid financial strain in the face of an accident or damage involving a vehicle. It can cover the cost of repairs or replacement of the vehicle and any medical expenses incurred by the driver or passengers.
In a heavily populated country such as India, where the occurrence of road accidents is alarmingly high, third-party motor insurance is mandatory for all vehicle owners. However, it is always advised to go for a comprehensive cover because it provides better protection as compared to third-party insurance.
To make a successful claim, it is essential to understand your policy and follow the correct claim process. In some cases, your claim can be rejected by the insurer on certain grounds. Here are a few tips to help you navigate the claim process with ease.
Evaluate your options
Comparing your motor insurance policy before buying is crucial as it ensures that you have the right coverage for your vehicle and requirements. It is important to compare the features, benefits, and premium rates of different policies to make an informed decision. The evaluation process can also help you identify any gaps in coverage or additional benefits you may need.
With the rise of insurtechs, evaluating and purchasing motor insurance has become more convenient. These digital platforms offer consumer-friendly offers, such as instant quotes, online policy purchases, and easy claim settlements. Additionally, insurtechs provide a transparent and user-friendly process for policy evaluation and comparison, making it easier for customers to make informed decisions.
Understand your policy
Motor insurance claims are often rejected due to non-compliance with the process. Therefore, it is important to know your policy in and out. This includes reviewing the policy details carefully and making sure that you are aware of the coverage you have, what is covered under the policy, any exclusions or limits on coverage, and the claim settlement process.
By having a clear understanding of your policy, you will be able to anticipate any issues that may arise when filing a claim, and take the necessary steps to address them ahead of time.
Some common exclusions in motor insurance include:
· Wear and tear of the vehicle
· Driving under the influence of drugs or alcohol
· War, mutiny and nuclear risks
· Mechanical or electrical breakdown
· Driving without a valid driving licence
· Damage to tires unless caused by a covered peril
· Loss or damage to accessories not covered under the policy
· Natural calamities unless otherwise specified
Keep detailed records
Proper documentation is crucial to the success of a motor insurance claim. Ensure that you have all the necessary vehicle-related documents at hand, including your motor insurance policy, registration certificate, and driving licence.
It is also a good idea to document your vehicle’s regular maintenance and repair. This will help in establishing the condition of the vehicle before the incident, making it easier to determine the cause of the damage and calculate the extent of the loss.
Act quickly
In case of an accident, it is essential to report it to the insurance company promptly. Also, remember to take detailed photographs of the damages and make a list of any stolen items if the vehicle has been involved in an accident.
Insurers usually give a window of 48 hours for you to make a claim. Failing to provide your insurance provider with the right documentation within the given time frame can get your claim rejected. If your vehicle has been damaged, report it to your insurance company before you give it for repair.
Be honest and transparent
It is important to know that failing to disclose accurate information about the condition of your vehicle at the time of issuance of a motor policy is considered fraud and can result in your claim being denied.
Hiding facts or lying about the condition of your vehicle can also invalidate your insurance policy. It is always best to be honest about the condition of your vehicle to ensure that you are fully covered in case of an accident or other covered event.
It is also advised to keep a record of your interactions with the insurance company, including the date and time of the call, the name of the person you spoke with, and a conversation summary. This will help you track the progress of your claim and will be useful in case you need to follow up with the company.