Car insurance is mandatory in India, but many car owners are unsure about the claim process. When an accident happens or your car gets damaged, knowing the correct car insurance claim process can save time, money, and stress. A small mistake or delay can even lead to claim rejection.
This guide explains the complete car insurance claim process in India in a simple and easy-to-understand way, so you know exactly what to do when you need it most.
What Is a Car Insurance Claim?
A car insurance claim is a formal request made by the policyholder to the insurance company for financial compensation after damage or loss of the insured vehicle. The claim can be raised due to an accident, theft, fire, natural calamity, or vandalism.
In India, car insurance policies are regulated by IRDAI, which ensures standard rules and transparency for insurers and policyholders.
Types of Car Insurance Claims in India
There are mainly two types of car insurance claims, and understanding the difference helps you choose the right method.
A cashless claim allows you to get your car repaired at a network garage without paying the full repair cost upfront. The insurance company directly settles the bill with the garage, and you only pay the deductible and non-covered expenses.
A reimbursement claim requires you to pay the repair cost first and later claim the amount from the insurance company by submitting bills and documents.
When Can You File a Car Insurance Claim?
You can file a car insurance claim in situations such as road accidents, theft of the vehicle, damage due to fire, floods, earthquakes, riots, or falling objects. Claims can also be raised for third-party liability if your vehicle causes injury or property damage to someone else.
However, normal wear and tear, mechanical failure, or driving under the influence of alcohol are usually not covered.
Step-by-Step Car Insurance Claim Process in India
The claim process becomes smooth if you follow the correct steps from the beginning.
The first step is to inform your insurance company as soon as the incident occurs. Most insurers allow claim intimation through mobile apps, websites, or customer care numbers. Delaying this step can create problems later.
In case of a major accident, theft, or third-party injury, filing an FIR at the nearest police station is mandatory. The FIR copy is required for claim approval.
After informing the insurer, a surveyor is appointed to assess the damage. The surveyor inspects the vehicle and prepares a report based on which the claim amount is decided. Do not start repairs before the surveyor’s inspection unless allowed by the insurer.
Once the survey is done, you can take the car to a network garage for cashless repair or any garage for reimbursement. After repairs, the insurer settles the claim according to the policy terms.
Documents Required for Car Insurance Claim
Documents play an important role in claim approval. You generally need the insurance policy copy, vehicle registration certificate, driving license of the driver, FIR copy if required, and repair bills.
Submitting clear and accurate documents helps avoid delays and rejections.
Third-Party Car Insurance Claim Process
Third-party insurance claims work differently. If your car damages another person’s property or causes injury, the claim is settled through the Motor Accident Claims Tribunal.
In such cases, the insurer pays the compensation to the third party, and the policyholder does not receive any repair amount for their own vehicle unless they have a comprehensive policy.
Common Reasons for Car Insurance Claim Rejection
Many car insurance claims are rejected due to small mistakes. Some common reasons include delayed claim intimation, expired policy, incorrect information, or driving without a valid license.
Claims can also be rejected if the accident occurred due to drunk driving or if the damage is not covered under the policy.
Tips to Ensure Smooth Claim Settlement
To avoid problems during claim settlement, always read your policy documents carefully. Keep your insurance active and renew it on time.
Inform the insurer immediately after an incident and follow their instructions strictly. Avoid repairing the vehicle before inspection and always provide accurate information.
How No Claim Bonus Affects Your Policy
If you do not make any claims during the policy period, you earn a No Claim Bonus, which reduces your premium at the time of renewal. Making a claim may affect this bonus, but in some cases, using an NCB protection add-on can help.
Digital Car Insurance Claims in India
Most insurance companies in India now offer digital claim services. You can upload photos, documents, and track claim status online. This has made the process faster and more transparent.
Digital claims are especially useful for minor damages and cashless repairs.
Final Thoughts
Understanding the car insurance claim process in India helps you handle stressful situations confidently. While filing a claim may seem complicated, following the correct steps and knowing your policy coverage makes it much easier.
Always choose the right insurance policy, keep documents ready, and act quickly after an incident. A well-informed policyholder is less likely to face claim rejection and more likely to get timely compensation.