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Car owners need to be aware of certain key issues involved in settling of accident claims.
Driving may be a pleasure, but the process of settling accident claims is far from pleasant.
Though the process is cumbersome, clarity on certain issues will ensure vehicle owners don't stay in the dark.
In most cases, frantic vehicle owners ring up their insurance agents to settle accident claims. The process is, however, flawed, says Antony Jacob, managing director, Royal Sundaram Alliance Insurance Co.
The first thing a car owner must do is to intimate the insurer from whom he had availed of the policy instead of calling up the agent. The other important thing, says Jacob, is to avoid trying to fix the car oneself.
Eswara Natrajan, head of motor insurance, ICICI Lombard, advises that one should always have the helpline numbers of the insurer. Jacob as well as Natrajan reiterate that once the insurer gets a call about an accident, the vehicle owner is directed to the nearest garage, which is part of the company's cashless claims network.
The first step to be followed after an accident is to detail the event, which will help in documenting the claim, says Jacob.
In case of an injury to a third party or severe damage to the car:
Report the matter to the nearest police station and obtain a copy of the first information report.
Do not make any promises or offer compensation to any third party who may be involved in the accident on behalf of the company.
Inform the damage details to the insurer at the earliest.
Car insurance broadly covers loss or damage owing to collision with an external object, fire, explosion, self-ignition or lightening, burglary, housebreak-in or theft, transit by road, rail, inland waterway, air, act of terrorism, riot, strike or malicious acts of third party, earthquake, floods, storm, rock slide, and towing charges too. Damage caused by towing is, however, restricted to a maximum of Rs 1,500, subject to receipt of the bill.
The premium charged for car insurance by private and public insurers are the same. Car insurance, which falls under the motor insurance category, is a tariffed regime, hence, the uniform pricing.
The premium for car insurance marginally differs from city to city. A person in Mumbai pays the highest premium in the country.
The basic premium charged across all categories of cars will be 3.18 per cent of the price of the car and additional charges.
Eswara says average claims from cars are about Rs 20,000 for ICICI Lombard, while almost 45 per cent of claims fall between Rs 10,000 and Rs 40,000. While claims amounting to over Rs 50,000 account only for 5 per cent, he adds.
N Raveendran, managing director, Alegion Insurance Services Ltd, says that if an accident involves only own damage to the car, claims are settled within seven days. If insurers delay the process, a consumer can approach the Insurance Ombudsman (insurance redressal forum) or go to the consumer court for service deficiency on the part of the insurer.
If the car, however, involves third-party liability (that is injury caused to a third party or other person) claim settlement may be a long-drawn process. The other party involved in the accident will have to make a claim to the Motor Accident Compensation Tribunal which will decide the amount to be settled.