Car Insurance Claim Settlement for Total Loss

1. Untraceable Theft: If the car is stolen and remains unrecovered after the police investigation is concluded. 

1. Beyond Economical Repair: The damage is so extensive that repairing it is not financially viable compared to the car's current worth. 

How to Get Full Value of Your Car in Case of Total Loss?

Calculation of Total Loss in Car Insurance  

The insurance provider does the car insurance total loss calculation by taking into consideration the IDV and the total repair cost of the car when the car owner has raised a claim of total loss vehicle insurance. If the cost of damage repair is more than 75% of the IDV then your car insurance is considered as a whole. 

The following table highlights the car insurance total loss calculation as per age of vehicle  and the vehicle parts:

Claim Process for Total Loss 

Cashless Claim:

Given below are the steps to opt for cashless claim: 

1. Step 1: Start by informing your insurer about the claim. The policyholder can inform it online or by getting in touch with their support team. 

1. Step 2: One of the officials from the insurance company will go through the damages and make a report. 
2. Step 3: Once the assessment is done by the insurer, they will sanction repairs in the network garages. 
3. Step 4: After you have submitted the insurance claim form, the insurer will settle your bill with the network garage. 

Reimbursement Car Insurance Claim:

Given below are the steps to file a reimbursement car insurance claim: 

1. Step 1: Inform your insurer about the claim by visiting their official website or calling their support team. 
2. Step 2: Ensure you file an FIR in case of an accident. 
3. Step 3: Your car will be taken to the closest garage, where a mechanic will evaluate the damage. 
4. Step 4: Once your car is repaired, you need to retain all the bills. 
5. Step 5: After submission of claim form, you also submit all the pertinent bills. The insurance company will reimburse all the expenses after you have made the payment for the associated deductibles. 

Documents Needed for Car Insurance Claims: 

A hassle-free experience depends on your ability to record claims under your auto insurance. Getting the necessary documentation is one of the key stages to a more seamless claim procedure. These records must be stored in a secure location.  

• Driving license of the driver: This document confirms the operator was legally authorized to drive the vehicle at the time of the incident. 
• Scanned copy of insurance policy certificate: This document proves the vehicle/property was insured under a valid contract at the time of the loss.
• Proof of identity: This document verifies the claimant's identity as a mandatory KYC requirement for processing the claim. 
• Registration Certificate of the policyholder: This document establishes legal ownership and provides key registration details of the insured vehicle. 
• Fire Brigade Report: This document is an official record confirming the cause and extent of damage specifically for fire-related claims. 
• First Information Report (FIR) if lodged: An FIR is an official police report required for claims involving theft, major accidents, injury, or death. 
• Cancelled cheque: This document provides the necessary bank details (account, IFSC) for electronic fund transfer of the settlement amount. 
• Original purchase invoice: This document helps the insurer determine the original cost of the item to accurately assess the claim amount. 

Documents Needed for Accident Claims:

The process of raising car insurance claims can different for different situations as well as reasons. Each of these scenario needs you to furnish one or more documents needed for car insurance claim. The following are different types of claims and documents required:  

• Driving license: It confirms the operator was legally authorized to drive the vehicle at the time of the accident. 
• Duly filled car insurance claim form: The official document essential for processing of the claim. 
• Insurance policy certificate copy: It proves the vehicle was insured under a valid contract at the time of the loss. 
• FIR: It is an official police record mandatory for claims involving major damage, theft, injury, or death. 
• Registration Certificate of the insured vehicle: It establishes legal ownership and provides key registration details of the vehicle. 
• Cancelled cheque: It provides the necessary bank details (account, IFSC) for electronic fund transfer of the claim settlement. 
• Fire Brigade Report: It confirms the cause and extent of damage specifically if fire was involved in the accident. 
• Pictures highlighting the vehicle damage: Visual proof of the extent and nature of the damage to support the claim assessment. 
• Original repair bills: It verifies the total cost of repairs incurred and is required for reimbursement claims). 
• Original payment receipts: It proves that the claimant has paid the repair facility. 
• Original purchase invoice: It helps the insurer determine the original cost of the vehicle. 

Documents Needed for Third Party Claims:

• Driving license: It confirms the operator of the insured vehicle was legally authorized to drive at the time of the accident. 
• Insurance policy certificate: It proves the third-party liability coverage was active for the insured vehicle on the date of the incident. 
• FIR: It is a mandatory official police record detailing the incident, required for claims involving injury, death, or major property damage. 
• Duly filled car insurance claim form: The official document initiating the claim, detailing the incident and the insured vehicle's information. 
• Photos showing the damages of the car: Visual evidence used by the insurer to assess the severity of the accident and the circumstances surrounding it. 

Documents Needed for Theft Claims:

• FIR: The essential police record confirming the theft incident, date, and time and initiating the investigation. 
• Duly filled insurance claim form: The official document initiating the claim, detailing the vehicle information and theft circumstances. 
• Registration certificate of the insured vehicle: This document provides proof of ownership and is surrendered to the insurer upon claim settlement. 
• Driving license: It confirms the policyholder or regular driver was legally authorized to operate the vehicle. 
• Insurance policy certificate: This document proves the vehicle was insured against theft under a valid contract on the date of the incident. 
• Original purchase invoice: This document is used to help the insurer determine the original cost for calculating the Insured Declared Value (IDV) and final settlement. 
• Non Traceable Certificate (NTC) from the local police: This document confirms that the police have closed the investigation and failed to recover the vehicle. 
• Cancelled cheque: This document provides the necessary bank details for electronic fund transfer of the settlement amount. 

Documents Needed for Own Damage Claims:

• Driving license: It confirms the operator was legally authorized to drive the vehicle at the time of the incident. 
• Duly filled car insurance claim form: The official document used to formally notify the insurer and provide details of the incident. 
• Registration Certificate of the insured car (RC): It provides proof of ownership and confirms the vehicle details match the policy. 
• Pictures showing the damaged caused to the vehicle: Visual evidence of the extent and nature of the damage for the surveyor's assessment. 
• Insurance policy certificate: It proves the vehicle had active Own Damage (OD) coverage under a valid contract at the time of loss. 
• Original repair bills: It is used to verify the total cost of repairs paid to the workshop. 
• Original payment receipts: It is a proof that the final bill has been settled with the garage. It is essential for reimbursement claims. 
• Original purchase invoice: It is used to help the insurer determine the original cost of the vehicle, particularly for total loss claims. 

What is Actual Cash Value of the Car? 

The market value of an insured vehicle and the sum that an auto insurance will pay in the event that the vehicle is wrecked are known as actual cash value. 

Different insurance companies determine a totaled car's worth in different ways. However, insurance often take into account the price the owner paid for the car less depreciation. This indicates that your car's ACV is less than what you paid for it.