How to solve common problems associated with car insurance claims

Posted on: Sep 1, 2021 | | Written by:

How to solve common problems associated with car insurance claims

Published on September 1, 2021. EST READ TIME: 3 minutes

A car insurance policy is something every responsible car owner must have. Not only is car insurance (third-party liability) a legal requirement, it is the best way to ensure your own financial stability and protection against a major repair cost shock in case your car meets with an accident. However, an insurance policy will be of no use if your claim gets rejected when you need monetary compensation the most. So, what you need to know is, car insurance companies require you to follow certain rules and regulations.

If you are not in compliance with the same or ignore them when you buy car insurance online, you may experience claims-related problems when the time comes. One best solutions to such problems are knowing your car insurance policy better and having sufficient knowledge about the claim filing procedure. In this article, you will get to know about insurance filing problems, why they occur, and how you can easily avoid them.

What is car insurance?

A car insurance policy is primarily a legal agreement between the car owner and the insurance company. In this agreement, the car owner pays a sum of the car insurance premium and in return, the insurance company guarantees financial coverage against losses and damages incurred by the vehicle due to an accident or any other admissible condition. Since four-wheelers are hefty possessions, it is essential to have a sufficient car insurance policy so that you do not burn a hole in your pocket when it comes to repairing your vehicle.

As per the Motor Vehicle Act, of 1988, every car/motor vehicle owner needs to have a minimum of third-party car insurance. Third party car insurance assures you financial coverage for losses or damages incurred to a third-party person or property due to admissible conditions of accidents. However, with third-party insurance, damages to your vehicle are not covered, and this is why many people opt for comprehensive car insurance so that their own damage is also covered.

Common problems associated with car insurance claims

Policyholders may face a few common problems while filing an insurance claim for a car. Read on to know all about them and how you can fix such problems.

1. No FIR is filed

A lack of an FIR or a police report can cause the insurance company to deny your claims. This is applicable in case of accidental damage to your car or if your car gets stolen. While a theft claim will not be entertained in the absence of a police report, certain kinds of accidental claims can only be processed when accompanied by a police report or an FIR. For better clarity on the matter, you may speak to the customer care team of your insurance company.

2. Lack of proper documentation

Absence of or shortage of proper documentation when a claim is filed can lead to a denial as well. When you buy a car insurance policy online, a welcome kit is delivered to you. The kit contains information about all the documentation that you will need to provide when you make a claim on your car insurance policy. In case a document is missing from your claim, the insurance company will contact you and inform you about the needed documents. Failure to submit the same on time can lead to claim denial.

3. Delayed application

If your vehicle meets with an accident or gets stolen, you are required to inform your car insurance company about the event and file the claim application within a set period. Failure to do so on your part may compel the insurance company to invoke a limitations clause. If such a limitation clause is invoked, the insurance company can restrict or deny your claim on the grounds that a long span of time has passed. Hence, it is best to be prompt with your claims and documentation.

4. Inadequate insurance coverage

Not only is it important for everyone who owns a car to have an insurance policy, but also to make sure that they have adequate coverage. Usually, insurance companies allow you to set your own IDV or insured declared value. It is always recommended to keep your IDV as high as you can.

Lowering your IDV is primarily suitable for cars that will be kept in long-term storage conditions. If you do not have adequate car insurance and you land in a soup, you might have to bear the cost of repairs and replacements from your own pocket. So, make sure that you choose the maximum possible IDV when you buy car insurance online.

5. Abandoned claims

It has been reported that several insurance claims are not followed up until closure. Policyholders raise a claim but don’t follow them up to the end. This is also a big reason why insurance companies need to restrict or deny claims. So, when you open an insurance claim, it is important that you follow up with them for closure. If you abandon a claim midway, the insurance company cannot keep it open forever at their end.

6. Insufficient insurance knowledge

Just like in the case of any other financial instrument, you must have adequate knowledge about car insurance policy if you want to make the best of it. In the absence of adequate information, you might end up making wrong assumptions and setting up wrong expectations. So, remember that when you buy car insurance online, the welcome kit you get has a lot of detailed information about how your policy works and what are your roles and responsibilities. It is important to read the welcome kit to understand how car insurance works and how you can make the most of it.

Conclusion

A car insurance policy saves you from unforeseen and sudden hefty expenses that might affect your financial stability. Not only this but having a minimum of a third party insurance policy will also save you from paying an unwanted motor fine. Know your needs and find the most suitable insurance policy for your four-wheeler.

All in all, a car insurance policy can come in super handy if you know how to register a claim right. Hence, make sure you have all the knowledge you need and closely follow the rules set by the insurance company to get your settlement in a hassle-free way.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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