Motor Insurance Claim

Unlike regular courts, the MACT has specific powers to: 

1. Determine liability for the accident. 

1. Based on the extent of loss or injury, it helps to calculate the compensation amount. 

1. Direct insurers or responsible parties to pay the compensation awarded. 

What are the Types of Motor Insurance Claims in India?

The different types of motor insurance claims available in India are mentioned below: 

1.Third-Party Claim 

1. If your vehicle is involved, then report the accident immediately to both the police and the insurance company. 

1. If you are the victim (i.e., another person’s vehicle caused the damage): 

1. Obtain the insurance details of the vehicle at fault. 

1. Inform the insurer of that vehicle about the accident. 

2.Own Damage Claim 

1. Inform your insurance company and the police immediately after the accident. 

1. To assess the damage, the insurer sends a surveyor. 

1. Until you receive permission from both the police and the insurance company, do not move the vehicle from the accident spot. 

1. Once permission is granted, you can proceed with vehicle removal and repairs. 

1. The insurer will directly pay the network garage for the covered damages, if your policy includes a cashless facility. 

1. In all cases, ensure you contact the insurer without delay after the incident. 

3. Theft Claim 

1. Immediately inform the police, the insurance company, and the transport department about the theft. 

1. To understand claim procedures and documentation requirements, review your policy document beforehand. 

1. When filing a theft claim: 

1. Collect and submit all required documents. 

1. Submit the duly filled claim form to the insurer. 

1. You must surrender the vehicle keys to the insurance company. 

Documents that are Required to be Submitted for a Motor Insurance Claim 

Check your policy to get the complete list of documents required. The documents needed are: 

1. Duly filled in claim form 

1. RC (Registration Certificate) of the vehicle 

1. Original estimate of loss 

1. Original repair invoice and payment receipt 

Note: 

1. In case a cashless facility is availed, only repair invoice would need to be submitted and FIR, if required.  

1. For theft claims, the keys are to be submitted, and FIR is needed as well along with a non-traceable certificate to be submitted. 

What is Cashless Motor Insurance Claim? 

The cashless car insurance claim process lets you get your car repaired at an insurer-approved network garage without paying upfront. The insurer directly pays the repair costs to the garage, and this process ensures a quick, hassle-free, and efficient repair experience, offering maximum convenience to policyholders. 

Benefits of Cashless Motor Insurance Claim 

The key benefits of cashless motor insurance claims are listed below: 

Fast and Efficient Process 

1. Ensures a quick and smooth claim settlement. 

1. The insurer directly settles repair costs with the network garage. 

1. Allows prompt repair without delays. 

Transparency in Claim Settlement 

1. Provides clear visibility into the repair process and associated expenses. 

1. Allows you to track progress and understand what repairs are being carried out. 

1. Minimizes disputes over costs or service details. 

Convenient Process 

1. Minimal paperwork, thereby ensuring a hassle-free experience. 

1. You need not manage payments or administrative work as the entire process is coordinated by the insurer. 

Quality Service 

1. Repairs are carried out at authorized network garages that maintain high service standards. 

1. Ensure top-quality repairs, enhancing your vehicle’s safety and longevity. 

No Need for Instant Payment 

1. Eliminates the stress of upfront repair payments. 

1. Ease your financial burden by making the payment of repairs upfront. 

Exclusions of Cashless Motor Insurance Claims 

The exclusions under cashless motor insurance claims are mentioned below: 

Depreciation 

1. Cashless car insurance does not cover depreciation on vehicle parts. 

1. As your car ages, the value of parts decreases due to regular wear and tear. 

1. When filing a claim, you must bear the depreciation cost unless you have a Zero Depreciation Add-on Cover. 

1. The Zero Depreciation Cover ensures you receive the full repair cost without factoring in depreciation. 

Deductibles 

1. Deductibles represent the portion of the claim amount you must pay out of pocket before the insurer covers the rest. 

1. Claim payout is impacted by both compulsory and voluntary deductibles. 

1. Review your policy to understand the deductible amounts. 

1. Avoid unexpected expenses during claim settlement. 

Consumables 

1. Items, such as engine oil, brake oil, nuts, bolts, and similar materials are usually excluded from coverage. 

1. These are considered part of regular vehicle maintenance, and not accident-related repairs. 

1. To cover these costs, you can opt for a Consumables Add-on Cover, which reimburses expenses for such items. 

Who is Eligible to File Claim with MACT? 

As per Section 166 of the Motor Vehicles Act, the following individuals are eligible to file a motor accident compensation claim: 

1. The injured person who was involved in the accident. 

1. The owner of the damaged property. 

1. Legal representatives of a deceased victim. 

1. An authorised agent or legal guardian (in cases involving minors or incapacitated persons). 

1. Pedestrians or other victims, excluding unauthorised passengers or those not associated with the vehicle involved in the accident. 

How to Process Motor Insurance Claims?

The steps to file a claim with the Motor Accident Claims Tribunal (MACT) are listed below: 

1. Report the Accident 

1. Report the incident to the police immediately. 

1. File a First Information Report (FIR). 

1. Obtain a copy of FIR, as it is a mandatory document for your claim submission. 

2. Collect Your Documents 

1. If you are injured in the accident, keep all medical records organized, including: 

1. Bills and receipts. 

1. Doctor’s prescriptions. 

1. Test reports and discharge summaries. 

1. These documents serve as critical evidence for your claim. 

1. File your claim under Section 166 of the Motor Vehicles Act within six months of the accident. 

3. Submit Your Claim with the MACT 

1. Submit the claim to the MACT that has jurisdiction over: 

1. The area where the accident occurred, or 

1. Your place of residence, or 

1. The location of the insurer’s office. 

1. Ensure you have the following documents ready for a smooth process: 

1. Copy of the FIR and related criminal papers. 

1. Driver’s licence of the accused driver. 

1. Vehicle Registration Certificate (RC), permit, and fitness documents. 

1. Insurance policy of the accused vehicle. 

1. Medical bills and post-mortem report (PMR), if applicable. 

1. Proof of income 

4. Attend the Tribunal Hearings 

1. The MACT will issue notices to all parties involved, including the insurance company, once the claim is filed. 

1. During the hearings, both parties can present evidence, call witnesses, and cross-examine each other. 

1. The Tribunal will evaluate factors such as: 

1. Fault and negligence of the parties involved. 

1. Extent of injuries or death caused. 

1. Impact on earning capacity or employment. 

1. Supporting evidence and documentation. 

5. Receive the Compensation 

1. If your claim is approved, the MACT will order the insurance company or liable party to pay compensation, which may cover: 

1. Medical expenses. 

1. Loss of income or earning capacity. 

1. Funeral costs (in case of death). 

1. Future treatment expenses. 

What are the Differences Between MACT vs Direct Insurance Claim (Own Damage)?

The key differences between MACT and Direct Insurance Claim are listed in the table below: 

How to Initiate a Cashless Claim After an Accident?

If your vehicle has been involved in an accident, you can initiate a cashless claim in the following manner: 

Step 1: Inform Your Insurer 

1. Immediately notify your insurer after an accident. 

1. Provide details of damage to your vehicle. 

Step 2: Locate a Network Garage 

1. Use the list of authorised network garages from your insurer. 

1. If needed, call the insurer’s toll-free number to find the nearest garage. 

Step 3: Take Your Car to the Network Garage 

1. Drive or tow your car to the chosen garage. 

1. Carry your insurance policy details with you. 

Step 4: Submit Policy Details 

1. Provide your car insurance policy to the garage. 

1. The garage will initiate the cashless claims process on your behalf. 

Step 5: Inspection and Approval 

1. To assess the damage, the insurer may send an inspector. 

1. Before repairing, wait for the insurer’s approval. 

Step 6: Repair Process 

1. Once approved, the network garage will start repairing your car. 

1. Monitor the progress of repairs as needed. 

Step 7: Direct Billing 

1. Payment is made to the garage directly by the insurer for the repairs. 

1. No upfront payment is required from you. 

Step 8: Pay Deductibles and Depreciation Costs 

1. Pay any applicable deductibles and depreciation costs for replaced parts. 

1. Zero depreciation add-on cover can exempt you from depreciation charges. 

Step 9: Collect Your Repaired Car 

1. Once repairs are complete, collect your car from the garage. 

1. Ensure the repairs meet your satisfaction before leaving. 

What is Reimbursement Motor Insurance Claims?

In a reimbursement claim, the policyholder first pays the repair expenses out of pocket and receives compensation from the insurer later. The key advantage of this process is the freedom to choose any garage for repairs while still being eligible for reimbursement of the incurred costs. 

How to Initiate a Reimbursement Claim After an Accident?

In case your vehicle has met with an accident, you should follow these steps to raise a reimbursement claim: 

Step 1: Register Your Claim 

1. Visit your insurer’s official website. 

1. Navigate to the “Claims” section. 

1. Click “Initiate Claim.” 

1. Select “Car” from the available options. 

1. Enter your registered mobile number. 

1. Click “Confirm.” 

1. Enter the OTP received on your phone. 

1. Select “Confirm” again. 

Step 2: Choose Policy and File Claim 

1. A list of your active policies will appear after logging in. 

1. Select the relevant car insurance policy for which you want to raise a claim. 

1. Complete the claim registration process. 

1. You will receive a claim registration number.  

1. Keep a note of the claim registration number for future reference. 

Step 3: Claim Timelines 

1. File the claim within 48 to 72 hours of the incident. 

1. If you miss this window, you must still register the claim within 7 days of the incident. 

Step 4: Inspection and Verification 

1. The insurer will send a surveyor or inspection officer to assess the damage after submitting the claim. 

1. The inspection report will be prepared after the surveyor verifies whether the cause of damage is covered under your policy. 

Step 5: Vehicle Repair 

1. Take your car to a garage of your choice for repairs. 

1. Once repaired, pay the repair costs and collect all bills and receipts. 

Step 6: Submit Documents 

1. To start the claim processing, submit the repair bills and other required documents to the insurance company. 

Step 7: Claim Processing and Reimbursement 

1. The insurer will verify the submitted documents and decide whether to approve or reject the claim based on policy terms. 

1. If approved, the reimbursement will be processed, and the compensation amount will be credited to your authorised bank account within a few days. 

What are the Documents Required to Raise a Reimbursement Insurance Claim?

The essential documents required to raise a reimbursement insurance claim are listed below: 

1.For Claims After an Accident 

1. A copy of your valid car insurance policy. 

1. A copy of your driving licence. 

1. Registration Certificate (RC) of the car. 

1. Original car keys. 

1. Duly filled and signed claim form provided by the insurer. 

1. First Information Report (FIR) on cases involving significant injuries or damage. 

1. Original garage bills and payment receipts as proof of repair expenses. 

1. Clear photographs and videos showing the damage sustained by the car. 

1. Hospital Bills, if you have personal accident cover and are raising a personal accident claim. 

2. For Claims After Theft 

1. Filled and signed by the policyholder. 

1. A copy of your driving licence. 

1. Copy of the Registration Certificate (RC book/card). 

1. Original car keys. 

1. A copy of your car insurance contract. 

1. First Information Report (FIR) detailing the theft incident. 

1. No-Trace Report, issued by the police confirming that the vehicle could not be located. 

1. Letter of Subrogation is required to transfer ownership rights to the insurer after claim settlement. 

3. For Claims for Damages Caused to a Third Party 

1. Duly filled and signed by the policyholder. 

1. A copy of your driving licence. 

1. Copy of the vehicle’s Registration Certificate (RC). 

1. A copy of your valid car insurance policy. 

1. Copy of the First Information Report (FIR). 

1. Copies of any summons or legal notices received. 

What are the Differences Between Cashless Vs Reimbursement Car Insurance Claim?

The key differences between cashless and reimbursement car insurance claim are mentioned in the table below: 

Apart from the above, if the insured vehicle is too old, the repair cost could be very high. In this situation, the motor insurance company may reject the claim.