CAR INSURANCE CLAIM SETTLEMENT PROCESS AND RATIO

A car insurance claim settlement is a procedure that is initiated when your vehicle is involved in an accident, natural disaster, or man-made calamity. During this process, a policyholder requests that the insurer provide compensation in such circumstances.

The amount provided by the insurer is primarily determined by factors such as the IDV, or insured declared value, of your vehicle and the type of insurance policy you have purchased, whether it is a third party, own damage, or comprehensive.

In this article, we will go over the car settlement ratio and process in detail.

What is a car insurance claim settlement ratio?

The percentage of claims settled by a car insurance company in a given year out of total claims is known as the claim settlement ratio. The higher the percentage of claims settled, the more credible the insurance provider becomes.

It is also advised that before purchasing any insurance, you should check the claim settlement ratios of all major companies on the internet.

How is a claim settlement ratio calculated?

CSR = (total number of claims settled in a year/total number of claims filed in a year) X 100

For example, if an insurance company settles 9000 claims out of a total of 10,000 claims, its CSR will be 90 percent.

Types of car insurance claim settlement

  1. Reimbursement Claim: If you repair your car outside of the authorized network, this type of process falls under the reimbursement claim settlement process. During this process, the car owner pays for the garage of his or her choice and later receives the repair cost from the insurer.
  2. Cashless Claim: This is the inverse of the previous process, so if you get your car repaired at an authorized garage, you are eligible for the cashless claim settlement process. The entire process is cashless, and the policyholder will not pay any money to anyone.

The process of Car Insurance Claim Settlement for reimbursement claim

  1. You must notify your insurance company of your accident as soon as possible, either by phone or by email; this will initiate the claim process.
  2. The company will then assign a surveyor to evaluate the damage to your vehicle, and a report will be sent to the company.
  3. The company will tow your vehicle to a nearby repair shop of their choice.
  4. Once all of the paperwork is completed, the insurance company will pay the amount directly to the garage owner, and the policyholder will be able to pick up his car.

 The process of Car Insurance Claim Settlement Procedure for Cashless Claim 

  1. You must immediately notify the insurance company of your accident; this will start the claim process.
  2. Following that, the company will assign a surveyor to assess the damage to your vehicle, and the report will be sent to the company.
  3. The company will tow your vehicle to an authorized garage for repairs.
  4. Once all of the formalities are completed, the insurance company will pay the amount directly to the garage owner, and the policyholder will be able to pick up his car.

Documents required for the settlement of a car insurance claim. 

You will need the following documents when filing a car insurance claim:

  1. Claim form, complete and duly signed.
  2. Policy document
  3. RC, or vehicle registration certificate
  4. Driving license
  5. PUC, or pollution under control certificate.
  6. FIR Copies
  7. PAN card (if required)
  8. Discharge voucher

How to file for car insurance claim settlement?

  1. Contact your insurance company's helpline as soon as possible and immediately notify them of the situation.
  2. You will also require a copy of the FIR, so file a complaint with your local police station to obtain a copy of the FIR.
  3. Submit the necessary documents.

 Best car insurance companies with a 2022 claim settlement ratio

Insurance company

CSR

Royal Sundaram

92%

Edelweiss car insurance

93%

HDFC ERGO

90%

IffcoTokio car insurance

84%

Chola MS car insurance

74%

 

FAQ

Q1. How to locate the local garage for cashless claim settlement?

You can locate the nearest garage of your respective insurance company by visiting their websites and providing the city, state, and car manufacturer.

Q2. Do I have to pay during claim settlement?

It depends. If you choose cashless claim settlement, you only have to pay a portion of the mandatory and voluntary deductibles, as well as the difference between the repair cost and the insured sum, whereas if you choose reimbursement claim settlement, you must pay the entire amount to the garage, and the company will reimburse you as soon as possible.

Q3. Can I get a higher amount as a claim settlement?

Yes, but only if you purchased add-on covers like engine protection or zero depreciation. These will increase your protection and lower your responsibility.

 

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