Isn’t it annoying? Not knowing and understanding something as important as insurance claims? It is equal to having an Apple MacBook Pro and not knowing how to use it. When it comes to insurance claims, one can be really confused about how and when to claim it. It may all seem Greek and Latin at times but here is an easy way to comprehend the process and use your insurance with maximum benefits.
First, let us understand,
When do you claim an insurance?
To understand this let’s take an example of Mr Sen. Mr Sen bought a car two years ago and has never met with an accident, until now. There hasn’t been any major damage as such, but Mr Sen thinks this would be a good time to use his insurance for the repairs. Is Mr Sen right to do such a thing?
Let’s say, Mr Sen has to pay a deductible or voluntary excess (A certain amount that comes out of the insured’s pocket) of Rs 3000. He has a No Claim Bonus (NCB) of Rs 6000 for 2 years. A NCB is usually offered by almost all insurance companies which starts off with a minimum percentage and keeps increasing every year for not claiming insurance, but as soon as it is used, the NCB goes back to square one.
If Mr. Sen bears the cost of repairs that are Rs 9000 and below, it is pointless to claim the insurance as Mr Sen will lose out on his NCB and will also be paying an excess which is equal to the cost of damages. He will not be saving any kind of money by using his claims under these circumstances.
Now, if Mr Sen is bearing a cost of Rs 15,000 worth of damage then he is paying a small amount of excess compared to the cost of damage. Also, if he uses his NCB, it still makes sense to do so, because it will enable him to save quite a bit with the NCB as the damage cost is way more than the NCB and the excess put together.
Pat yourselves on the back because you deserve that after understanding this complex concept.
Now that we have ticked ‘when’ from our check list, let’s get to ‘what’.
What can you possibly claim from a vehicle insurance?
This is very simple. You can claim the listed things from your insurance:
- Property damage claims
- Vehicle repairs
- Stolen property
Different insurance policies offer different premiums but these are the basic claims that can be made from all the insurance premiums of all the insurance companies.
The process to claim differs depending on what you are claiming vehicle insurance for.
In case of an accident,
You can either use the comprehensive policy or the 3rd party insurance depending on the nature of the accident. Comprehensive policy refers to your policy of your own car. You must make sure that you inform the company and the cops about the accident as soon as it happens. For evidence, take pictures if possible and make sure you tell the company exactly what happened and stick to the story.
After the accident, it would be ideal to take the car to a nearby garage and fill up the insurance claiming form which is usually available online. This form is usually to write down how the accident happened and what parts of the car were damaged. This is then assessed and processed by the Insurance Adjuster for the claims to take place. Once this is done, if the car repair company you go to are tied up with the insurance company, they may let you go cashless (directly get paid from the insurance company) or you pay the bills and then claim your money from the company.
In case of third party claim, you are claiming from the other person’s insurance company (The person who crashed into your vehicle causing you all the damage).
Other than these details about how what and when, please keep in mind that you can also get a rental reimbursement coverage (if you have opted for it). This is the cost of the rental car you will be using while your car is under damage construction. The insurance companies give you a budget and will pay you back all the money you spent renting cars.
These are the basics one should know and understand about insurance claims to use it wisely with as many benefits one can possibly get from it.
Not as annoying as it was before you landed here, isn’t it?