Before making a car insurance claim, policyholders should carefully evaluate the potential impact on their No Claim Bonus (NCB) benefits. As reported by Mint, a repair bill of ₹12,000 may seem like a valid claim, but avoiding that claim could save ₹22,000 when the policy comes up for renewal. The key comparison involves the NCB benefit versus the actual claim amount. For example, a ₹45,000 repair bill against the same ₹22,000 NCB benefit would generally make a claim more useful, depending on the eligible payout. Policyholders should calculate the expected payout versus the entire repair bill amount, including any deductibles they must pay. Narayan Rao, head – Motor Claims, Go Digit General Insurance, explained that if a repair costs ₹8,000-10,000 but retaining the NCB saves ₹12,000-15,000 at renewal, paying for the repair yourself may make sense, but if the claim is ₹50,000, filing it would generally be more sensible.
Even approved claims may leave policyholders with significant out-of-pocket expenses through deductibles. According to Mint, for a ₹30,000 repair bill with a ₹7,500 voluntary deductible, the policyholder would bear ₹7,500 while the insurer pays the remaining eligible amount. This means policyholders should use the expected payout rather than the entire repair bill amount when making calculations. Higher voluntary deductibles can lower premiums but increase contributions when making claims. A zero-depreciation add-on reduces depreciation deductions on eligible parts after an accident, but it doesn't cover everything - normal wear and tear remains excluded, and policyholders should check which parts and situations are covered under their specific policy.
Motor insurance claims often fail due to overlooked details such as expired licenses, misreporting, or missing add-ons. According to Mint, claim disputes arise from details that policyholders overlook—from an expired driving license to previous scratches, incorrect disclosures or missing add-ons. Chirag Andani's (23) claim was rejected after his Honda City collided with a cow, hit an electric pole and stones, but the insurer argued the damage was inconsistent with the accident described. The insurance ombudsman found that surveyors had not obtained CCTV footage to establish the car's condition before the accident, leading to the insurer's subsequent settlement of the claim. Bhupendra Gosar's (62) claim was rejected after his driving license had expired, while Dharmendra Kumar (38) had his car fire claim rejected as 'mechanical in nature' until he provided fire report and police diary notes that supported his case when the matter went to the ombudsman.
When buying a policy, policyholders should provide accurate information about their previous claims, no-claim bonus (NCB), vehicle ownership, usage, modifications and other details. As reported by Mint, misrepresentation is one of the biggest reasons for claim rejection. Narayan Rao, head – Motor Claims, Go Digit General Insurance, explained that information that may seem unimportant while buying the policy can become relevant at the time of a claim. Policyholders should also inform the insurer of changes during the policy period, such as transfer of ownership, change in vehicle usage, significant modifications, or previously provided incorrect information. Amish Shah, Pune-based garage owner, emphasized that taking pictures and videos of the accident site as visual proof is essential for thorough documentation.
A common misconception is that an existing motor policy automatically remains fully valid when a car changes hands. According to Mint, while the third-party or liability component transfers automatically, the own-damage component needs to be transferred to the new owner. Buyers should inform the insurer, provide proof of purchase and Form 29/30, and apply for transfer to ensure claim validity. For theft claims, policyholders should act quickly by lodging an FIR, informing the insurer, informing the RTO and obtaining acknowledgement, and submitting the original RC and keys to the insurer. If a vehicle is declared a total loss, its salvage retains value - depending on the insurer's process, the customer may opt for assisted disposal or take responsibility for disposing of it.
