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Being a car owner with a solid insurance plan gives you the financial backing in case of an accident or damage to the car. Getting the financial compensation from the insurance provider in such a case is called a claim. Here is a question that ponders your mind: how many times can one claim a car insurance policy in India?
Let's have a detailed look at it.
Usually, there are no limitations on the number of claims one can make under the car insurance policy in an entire year. However, there are several factors attached to it. Like, in such a case, the car insurance claim affects the no claim bonus and may also increase the premium as and when you renew the car insurance policy.
Remember, in the case of a Zero Depreciation cover for the car insurance plan; there is a specific set number of claims you can make in an entire year. The number of claims permitted under this cover varies with different insurance providers.
"Not having a contingency plan or never performing risk analysis and mitigation activities is like not having an insurance plan for yourself." ― Pooja Agnihotri
Car insurance claims majorly depend on the type of claim and the extent of damage to the car. However, it is recommended not to raise a claim if the damages are minor, like a dent on the bumper or a broken mirror. It is advisable to file a claim against the car insurance only if the damages are severe and require a considerable amount of repair or car parts replacement.
Though there are no limits on the number of claims, you should be watchful when filing a claim in the car insurance policy. Multiple car insurance claims can impact your car insurance policy with;
‘’If there is anyone dependent on your income, like your parents, children, or relatives, for instance, then you need life insurance’’. - Suze Orman
In the financial year 2019, the insurance claims ratio of private multi-line insurers across India was 75 percent, while that of public multi-line insurers stood at 102 percent. The claims ratio differential has increased significantly in the country. The claims ratio is the percentage of insurance claims costs that a company incurs concerning the premiums earned in a financial year. An ideal claims ratio is considered to be between 75 and 90 percent. If the value is greater than expected, there is a potential for fraud regarding the claim. At the same time, a lower ratio can indicate unconnected products or difficulty for insurance policy holders in getting their claims settled rightfully.
Let’s look at some frequent queries on how many times one can claim for a car insurance policy;
No. Normally, a car insurance provider cannot cancel insurance policy for making multiple claims. However, the insurer may increase the premium when the policy is up for getting renewed.
Officially, yes you can raise an insurance claim for the car insurance policy in case of a dented bumper or even a broken mirror. However, it is advisable that you avoid filing claims for minor damages as in such case you shall miss the NCB- No claim bonus discount. Filing a claim if the repair costs are greater than the NCB is ideal.
Though each insurance provider gives a set of documents needed for the claims procedure of a car insurance policy, the general documents like original car insurance policy, driver’s license, filled claim form, and the repair charges bill. There is also an option of filing car insurance claim online these days, for most insurance providers.
It is advisable to not claim for minor damages. Before filing a claim, you should broadly assess factors like actual amount of loss or damage to the car, the number of applicable deductibles and the no claim bonus applicable to the car insurance policy.