A Motor Vehicle Insurance Policy may be a mandatory policy issued by a general insurance firm as a part of prevention of public liability (Third party liability). The law mandates that each owner of a motor vehicle should have one car insurance policy.
The Govt of India introduced the motor vehicle Act was back in 1988. the most objective of this act is to form the Indian Laws on accident claims more effective.
As per this act, the owner of a motor vehicle should have a 3rd party Insurance cover. The insured (owner of the vehicle) is considered because the 1st party, the insurance company is that the ‘second party’ and all others (the general public/assets) would be ‘third parties’.
If you’re driving a motor vehicle in India, you ought to have Third Party liability insurance. TPI is mandatory for all vehicles plying on public roads in India. Do note that Third party Insurance only covers damage to others because the results of an accident that was deemed your fault. It doesn’t offer an insurance cover to you / your car.
If you would like to take the next level of protection that provides cover for third party liability and your vehicle then you have got to take a ‘Comprehensive motor vehicle Insurance Policy’.
So, a comprehensive or package policy covers each ‘Liability’ as well as ‘own damage’ to the insured vehicle.
You can check if your bike or car insurance may be a Third Party only insurance or a Comprehensive one by going through the details given within the ‘Schedule of Premium’ section of your Motor Vehicle Insurance policy certificate.
Generally a Comprehensive motor insurance cover can protect you against any accidental loss or damage to the personal car caused by the any of the unforeseen events like : –
- Fire, explosion, self ignition or lightning
- Burglary, housebreaking or theft
- Riot or strike
- Flood typhoon, hurricane, storm, inundation, cyclone, hailstorm etc.,
- Accidental (by external means)
- Malicious act
- Terrorist activity
- Whilst in transit by road, rail, inland- waterway, lift, elevator or air
- Land slide, rock slide etc.,
How to claim Motor Vehicle Insurance?
Increasing range of accidents and incidents of vehicle thefts has made it essential for policyholders to understand how to file motor insurance claims.
There is 3 types of insurance claims below a motor vehicle insurance policy: –
- Third Party Claim.
- Own Damage Claim.
- Theft Claim.
(Third Party Insurance covers only the first one. Whereas, the comprehensive package policy covers all the three.)
You have to provide the below details that are common while intimating any kind of Motor Vehicle Insurance claim:-
- Motor Insurance Policy Number.
- Policy holder’s name.
- Date & time of the accident.
- If possible, the vehicle numbers of all the motor vehicles which are involved in the accident.
- Location of the incident.
- Name & Contact details of any witnesses.
- Driver’s name.
Below are the required documents that need to be submitted while making a claim:-
- Copy of Insurance policy / Cover note.
- Copy of RC book .
- Road tax paid receipt.
- Copy of Motor driving License of the person driving the vehicle.
- Police FIR.
How to file a Third Party Claim?
- If your vehicle is involved in an accident, it’s important that you just inform about the accident to the police similarly as to your insurance firm immediately.
- In case if you’re a victim, that is, if someone else’s vehicle was involved within the accident, you need to obtain the insurance details of that vehicle and inform to the insurance company of that vehicle.
- Submit the duly filled insurance claim form.
- Submit all the documents as mentioned above.
How to make an ‘Own Damage’ Claim (Accident Claims)?
In the event of an own damage claim, that is, wherever your own vehicle is damaged due to an accident, you want to immediately inform insurance firm and police.
- Your insurance company can deploy a ‘Surveyor’ to assess the loss.
- Kindly don’t attempt to move the vehicle from the accident spot. you would like to get permission from police and your insurance company to try and do therefore.
- Submit the estimate for repairs from the repairer / original invoice along side the basic documents as mentioned above.
- If your policy provides ‘cash less service’, your insurance company can pay for the repairs directly to the repairman.
- If you have got to claim the reimbursements then submit your ‘payment receipt’ to your insurance company.
- Once you receive the claim amount, you have got to sign the ‘Claims discharge Voucher’ and submit it to the insurance company.
How to Claim Insurance if your Car is stolen (Theft Claim)?
- If your motor vehicle is stolen, you want to inform the police, your insurance firm and if possible the transport dept (Road Transportation Office) instantly.
- Along with the on top of basic documents you have got to surrender your vehicle keys to your insurance firm.
- Submit duly filled theft claim form to your insurance firm besides above basic documents.
- Once the police submit the final ‘non-traceable report’ and your claim is approved, you (insured) ought to transfer the RC of the stolen vehicle in favor of the insurance firm. you furthermore might have to hand-over all sets of vehicle keys to them.
- The amount approved as per the insurance company’s surveyor’s report are reimbursed to you. just in case the vehicle is taken on loan, the insurance firm can reimburse the payout amount to the Financier.
Important Points & FAQs on Motor Vehicle Insurance claims
Do i want to submit an FIR just in case of any accident? – yes, you’ve got to obtain a FIR from the police. It additionally depends on a case to case basis. as an example – If a tree fell on the car and destroyed it, you will get full IDV back while not an FIR. ( Insured’s Declared value (IDV) is that the current market price of your vehicle that’s fixed by the insurance company and provided just in case of theft or total loss of vehicle.)
How long can it take to method my Motor insurance claim? – this depends on the kind of loss, damage and based on the Surveyor’s report. As per the IRDA’s policy holder servicing guidelines, the insurance firm has to settle/reject the claim among thirty days when receiving the survey report.
What if the accident takes place during a town other than the place wherever the motor vehicle insurance policy has been issued? – It doesn’t matter wherever the accident happens in India. you wish to instantly contact your insurance firm & inform the police regarding the incident. If your motor insurance policy is in force, you stay insured throughout the country.
Am I liable to pay for the damages if somebody else is driving my vehicle? – If your vehicle is insured then you will not be liable to pay anything. However, you need to make sure that you hand-over your vehicle to a person who has a valid driving license and he/she isn’t under the influence of alcohol once driving your vehicle.
Can I get my car / bike repaired during a garage / workshop of my choice? – If you’ve got cash-less service choice, it’s better you get it done at your insurance company’s registered/authorized motor vehicle service centre. Else, it’s fine to get it repaired in any workshop then claim it by submitting the invoice to your insurance firm.
Can I lodge a claim when the expiry of my policy date for an event that occurred during the policy period? – yes, you’ll be eligible for the claim even when the expiry of the policy date. this is because the event took place during the policy period.
Are third party medical expenses covered? – yes, they’re covered under third party insurance claim.
In case of theft, how much can the insurance firms pay? – The insurance firm pays IDV amount.
Do I lose my NCB in case of theft of my car? – yes. If there’s a theft and you make a claim, you lose the NCB. (NCB – No Claim Bonus is a discount in premium offered by insurance firms if a vehicle owner has not made one claim during the term of the motor insurance policy.)
A recent study by Insurance information Bureau of India (IIB) and also the insurance business indicates that 45-55% of vehicles are uninsured in India. In fact, near 500th of personal cars are uninsured when the first year. Insurance policies are generally fabricated and traffic authorities don’t have any way to verify policy details.
The best way to protect your motor vehicle against any unfortunate incidences is by insuring it by buying adequate Motor Vehicle Insurance. buying insurance can relieve you from large losses just in case of any eventuality. Also, don’t forget to renew your motor insurance on time!