When Not to File for a Car Insurance Claim?

Consider the case where your vehicle was parked in a garage and your neighbour's car rammed into it causing broken headlights. In such cases, you can opt for an insurance claim under the third-party liability of your neighbour, irrespective of the scale of damage.  

In the case mentioned above, you were not at-fault as a driver. That is why, by opting for third-party liability insurance, you won’t be required to raise a claim under your insurance policy. Your neighbour's insurance provider is liable to pay for your vehicle’s damage.  

Do note that you would have to file an (First Information Report) FIR at the nearest police station to raise a third-party claim.  

1. Protecting Your NCB: 

A car owner who has not raised any claim in a year gets the benefit of a No Claim Bonus (NCB). This bonus can later be enchased as a discount on the car insurance’s renewal premium. In case the car owner does not raise any claim for five consecutive years, he/she is entitled to a discount of up to 50% on the renewal premium. That is why, it is important to consider all aspects before you raise a claim. You need to be really that raising a claim is worth the effort.  

1. Deductibles: 

Deductibles are a compulsory part of the car insurance policy in most cases and are paid from your pocket. The amount deductible charged depends on the engine capacity of your vehicle. Other than this, there is a voluntary deductible. This amount is charged when you raise a claim. The insurer will pay you the claim amount only after you have paid the deductible. That is why, it is important to check if your claim is bigger than the deductible.  

Consider the case where the sum of your compulsory and voluntary deductible is Rs.11,000. In this case, if you raise a claim of Rs.10,000, then the insurer will not pay you anything. You would have to pay this amount. You will also lose your No Claim Bonus in the process. 

When You Should Not File a Car Insurance Claim? 

Make a note of the below mentioned scenarios to know when you should not file a car insurance: 

1. When you have accumulated a high amount of NCB: If you have not raised a car insurance claim for five consecutive years (in most cases), you are entitled to a discount of up to 50% on the car insurance renewal premium. That is why, you should consider this aspect before raising a car claim.  
2. Mutual Settlement: In a case where your car is damaged due to a third party's fault, and he/she is ready to pay for the damage, you should not raise a claim. Settling the issue amicably without raising a claim is the best option in such a situation. However, do note that you might have to inform the insurer about the same and file an FIR.  

1. Deductible is higher: Consider a case where you are required to pay Rs.10,000 as the sum of your compulsory and voluntary deductible. And you need to raise a claim of Rs.9,000, then the insurer will not pay for your claim. You will have to pay this amount. Moreover, you will also lose your No Claim Bonus in this scenario.  
2. Minor Damage: In case of minor damages, it is better to pay for your own damages and protect your NCB rather than raise a claim. 

How to Raise a Claim After Accident? 

Follow the steps given below to raise a claim for your own car after a major accident: 

Step 1: Report the issue to your insurance provider 

Step 2: File an FIR at the nearest police station and get a copy of it. 

Step 3: Raise a claim at the insurance company. 

Documents Required to Raise a Claim: 

The following documents are required to raise a claim: 

1. Original insurance policy as well as copy 
2. FIR 
3. Car’s registration certificate 
4. Your driving licence 

1. A summary of the damage as estimated cost of the repair 
2. Medical bills (in case of injury)