Fire Insurance

What are the principles of fire insurance?

• Indemnity - It covers loss compensation only.
• Proximate cause - The accurate reason for the fire.
• Insurable interest -Proof that the policyholder is the owner of the property/belongings

Fire is a type of peril that causes financial loss and If you invest in standard fire insurance usually there are other perils covered too with it like a flood, storm, etc. This is a comprehensive type of insurance usually for factories or other businesses.

Who should take Fire Insurance?

Anyone who has an insurable interest in their property or belongings.

If you have taken property fire insurance for your factory, the coverage will Include the stock that's in it, and the structure only if you are the owner.

If its a rented property, the structure of the building will not be insured by your policy as there wouldn’t be an insurable interest

For any rented accommodation, the landlord is responsible for the structural damage

If you are taking loans, make sure to ask for insurance for the structure of the property too as banks usually ask if the structure is insured too.

What is covered under Fire Insurance?

1. Factory -

• Electrical installations like Machinery
• Stocks - finished good, semi-finished goods, and Raw material
• Other types of equipment

2. Home insurance - All personal belongings except expensive and precious items

3. Shops and hotels - furniture and stock

Which is not covered under fire insurance?

1. Earthquake
2. War
3. Terrorist
4. Caused by the Third-party - for example, your factory is on the ground floor and the fire was caused by someone of the first floor

PS - But these perils can be bought as a rider along with a standard fire insurance policy.

Pro Tip-

• You should be aware of the items you wanna cover so that you could calculate      the value of your belongings.
• Proof of insurable interest (ownership) should be there
• It's important to have fire safety equipment too, the quality of which would      also help you get a lower premium.

Things to declare

1. You would need to declare the kind of products that you want the insurer to secure, depending on which the premium will be decided, flammable materials premium would cost a lot more.
2. You would have to declare the previous loses you have had too,

Always take insurance equal to the value of the items you want to insure.

For instance, your Stock value is Rs 2 crore for which you took insurance of Rs 1 crore. You suffered a loss of 50% and because you took 1 core, ideally you should get Rs 50 lakh, but insurers work on a pro-rata basis. Since you have insured only half of the stock, your loss will be compensated for 50% too.

Hence, You will be entitled to get Rs 25 lakhs

Therefore, it's very important to cover the entire stock and not only a part of it.

Important Documents for Fire Insurance

• Fire department report
• Police report - this is crucial evidence that explains the cause of the fire
• Panchanama report - damage
• Evidence to establish the value of the stock
• Surveyor report

Once you inform your insurance company, they send a surveyor who makes a report, this Surveyor report is very important to evaluate your loss.

And if you have any objection with their report, you can also submit an objection letter to your insurer (Insurance samadhan can help you with this, click here to register)

Within 30 days of the surveyor visiting you, a discrepancy report for further information or claim acceptance will be sent to you.

Sometimes, the claim is not as per what you thought it would be, and it’s important to know that the offer you get from your insurer is not the final ultimatum, you don't have to accept it if you think you deserve better and we at insurance samadhan could help you with that too!

Register here if you have difficulties in raising complaints or claiming your money!

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

When to buy a term insurance?

Term insurance plans are one of the best investment instruments that can be beneficial if you want to guarantee financial soundness for your family after your death. Every insurance company offers a range of term insurance options to choose from, each of them specially designed to suit the individual needs of every investor. A very valid question that often plagues investors is- when is the right time to buy term insurance plans? What makes this question all the more crucial is that most potential investors are oblivious to the prospects of early investments in term plans. The widespread notion is that term insurance plans are an excellent investment if your age is above 35 years, since they are well-settled by then. However, it is quite a misconception. On the contrary, the earlier you start investing in term insurance plans, the better it is. By investing in a good term insurance plan at a young age, you will have to incur lesser premium payout. Good investors usually Invest early in term insurance as their main goal to reap as much benefits as possible. Yet another reason in favor of starting early is that there are lesser diseases to riddle you. On the other hand, the older you get, the higher are your chances of being afflicted by various diseases, which in turn, lead to a rise in your premium. Let us take a look at the implications of availing term insurance plans at different stages of your life:

1.       Early twenties and unmarried: since in today’s times, most people choose to marry late, they are an added income to their existing families. Their expenses are much less, which makes it a conducive time to create a financial cushion for their later years. Another advantage is that, term insurance at this phase is quite affordable, and aids in tax-saving.

2.        Term insurance plans are one of the best investment instruments that can be beneficial if you want to guarantee financial soundness for your family after your death. Every insurance company offers a range of term insurance options to choose from, each of them specially designed to suit the individual needs of every investor. A very valid question that often plagues investors is- when is the right time to buy term insurance plans? What makes this question all the more crucial is that most potential investors are oblivious to the prospects of early investments in term plans. The widespread notion is that term insurance plans are an excellent investment if your age is above 35 years, since they are well-settled by then. However, it is quite a misconception. On the contrary, the earlier you start investing in term insurance plans, the better it is. By investing in a good term insurance plan at a young age, you will have to incur lesser premium payout. Good investors usually Invest early in term insurance as their main goal to reap as much benefits as possible. Yet another reason in favor of starting early is that there are lesser diseases to riddle you. On the other hand, the older you get, the higher are your chances of being afflicted by various diseases, which in turn, lead to a rise in your premium. Let us take a look at the implications of availing term insurance plans at different stages of your life:

1.       Early twenties and unmarried: since in today’s times, most people choose to marry late, they are an added income to their existing families. Their expenses are much less, which makes it a conducive time to create a financial cushion for their later years. Another advantage is that, term insurance at this phase is quite affordable, and aids in tax-saving.

2.       Mid/late twenties and married: this is a crucial stage, as you have just embarked on, or are soon going to start a new journey of life. If you are a newlywed, this is the perfect time to invest, which will pave the way for reliable financial backing for your family which is bound to grow over the course of a few years. However, note that at this phase the term insurance plan should have more coverage as compared to your previous investments. With the growing responsibilities of a parent, you need to spare ample thought to your children’s education, extra-curricular activities, medical expenses, and so on. Make sure that your long-term debts are covered and you get enough security for yourself and your family with a higher protection term policy.

3.       Retirement plans: although this is quite an unfit time to buy term insurance plans, once your kids get into college or begin to pursue higher education, it is always advisable to start planning for your twilight years. You can settle for a few good pension plans that will secure funds for you and your lifestyle once your retired life begins. You should also take into consideration that in the event of your premature demise, how your family will support their lifestyles. this is a crucial stage, as you have just embarked on, or are soon going to start a new journey of life. If you are a newlywed, this is the perfect time to invest, which will pave the way for reliable financial backing for your family which is bound to grow over the course of a few years. However, note that at this phase the term insurance plan should have more coverage as compared to your previous investments. With the growing responsibilities of a parent, you need to spare ample thought to your children’s education, extra-curricular activities, medical expenses, and so on. Make sure that your long-term debts are covered and you get enough security for yourself and your family with a higher protection term policy.

3.       Retirement plans: although this is quite an unfit time to buy term insurance plans, once your kids get into college or begin to pursue higher education, it is always advisable to start planning for your twilight years. You can settle for a few good pension plans that will secure funds for you and your lifestyle once your retired life begins. You should also take into consideration that in the event of your premature demise, how your family will support their lifestyles. 

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

How Can You Safeguard Yourself from Insurance Related Fraud?

Insurance related fraud is a problem that is rearing its head in India and the number of instances is only going up regularly. The commonest way of deceiving people is when scamsters pretend to be representatives from the IRDA. These people usually masquerade as representatives of the IRDA (Insurance Regulatory & Development Authority). Existing life insurance customers are called by these fraudsters and told that they can get an IRDA bonus for their policies but have to buy a new policy in order to get this bonus after a few months.

Watch this Video and know how to identify Insurance Fraud Calls

This is totally fraudulent. There are no such bonuses given by IRDA and it is not engaged in selling insurance policies or other financial schemes. In case you get these calls, immediately file a complaint to the Police Station while providing all details of the phone call you received. Do not have blind faith in your insurance agent. Always conduct an extensive background verification, particularly of his/her unique code. This is given by the IRDAI for every agent/broker who is authorized. Life insurance plans are never recommended to customers by the IRDAI and switching between plans is something that is avoidable.

Always have a copy of personal identification cards and documents of your insurance agent along with the number, contact number and address along with all necessary policy papers. Do not leave vital policy documents in the hands of your insurance agent. Always make sure that insurance premium payments are made via demand draft, cheque or online payments. Cheques should never be made out in the name of the insurance agent and do not pay any premiums in cash. You should directly issue the cheque in the name of the insurance company. 

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

Car Insurance Claim Rules

We put so much money and effort into purchasing a car and it wouldn’t be right if we don’t protect it. Although, car insurance is mandatory for every vehicle you see on the road it’s a wise practice regardless.

Car insurance is broadly classified into two categories, third party liability insurance, and comprehensive insurance.

Third-party liability insurance provides benefits only to the third party and not the policyholder and as the name suggests, a comprehensive policy protects us from various unforeseen situations. Hence it's recommended having a comprehensive one that protects you (the policyholder) from accidents, theft, and other damages.

One should be cautious not only while purchasing a car insurance policy but also while filing for a claim. Sometimes, because we don’t do our research properly, there are some mistakes we might make that can cause our claim to get rejected. Hence it's always better to be well informed so there are no mistakes from our end.

Things to Keep in Mind While Filing for a Car Insurance Claim

1. File for an FIR if your car has been a victim of a crime.

For every insurer to authenticate your claim request, they would need an FIR if your car has been stolen or vandalized.

To enable your insurer to process your claim application, an FIR is mandatory. So, make sure you file for one at the nearest police station immediately.

2. Intimate your Insurance provider at the earliest

The first instinct when something tragic happens has to be an intimation to your insurer.

Sometimes, if the insurer is not informed immediately, they would suspect an insurance swindling and to avoid such accusations that would lead to further investigation which means a delay in the settlement, make sure you inform your insurer at the earliest possible and don’t miss out on any details.

3. A surveyor should inspect the situation

Once an insurer is informed about the incident, they appoint a surveyor who inspects the incident to evaluate the authenticity of the situation.

At this point, make sure you are completely transparent with the surveyor to avoid any kind of delay. It is only when the surveyor will have all the information will he be able to process the claim in your favor.

4. Collect evidence that will strengthen your claim request

To strengthen your position in a claim settlement process, evidence plays a very important role. If you manage to collect a valid proof that will serve in your favor, it's gonna help you speed up your claim process.

Collect all kinds of evidence possible - Pictures and videos of the incident, name and contact details of witnesses, copy of the insurance policy of the third party, etc.

5. Maintain a record of the bills and expenses incurred concerning your claim.

Your car or you might need some stitching up after the tragic incident and to get reimbursed by your insurer, just make sure you collect all these expenses that you might have to incur.

6. Payout options

a. Reimbursement claim: The policyholder pays the car repair shop directly and collects the repair bills and receipts that need to be submitted to the insurance company or the surveyor. The company then pays the policyholder within a specific period from the document submission date.

b. Cashless claim: Your insurer will approve the claim amount and it will be communicated to the specific workshop directly. The Insurer will pay for the repairs directly to the concerned workshop.

7. Make sure the policy is under your name

This is quite obvious but if you have purchased a second-hand car and have forgotten to transfer the policy under your name, your claim will get rejected.

8. Avoid moving from the accident spot

This is an important rule that one should keep in mind, do not move from the accident spot even if it is causing minor inconvenience to be there, and if it causes too much trouble, usually insurers will then send a surveyor immediately to your location. And if this is not the case, avoid moving from that spot as you may tamper with the process of inspection that the surveyor might do to validate your claim.

9. Start repair work only after informing your insurer

If your car needs to be repaired, make sure it is done only after you have informed the insurer about your situation. If the damage repairs have been done before intimation, your claim might get rejected.

10. Refrain from making any deals with the third party

It's quite common after an accident that both parties come to a mutual agreement and accept a deal to make things quicker and easier. But if you are a car insurance policyholder, it makes much more sense for you to refrain from such agreements and channel your energy towards applying for your insurance claim as the money you might receive from the third party would most likely be lesser than what you could get through your claim.

11. Don’t hide any information from your insurer or surveyor

Insurance fraudulence is being committed more often than ever and it has made insurance companies and policyholders extremely cautious about their investments/money.

To avoid any kind of accusations of swindling, make sure you disclose all the information that you think is necessary and relevant to your case. If the insurance company identifies the inauthenticity of the information you have provided (even if it's a minor one like - wrong spellings of your personal information) your claim might get rejected.

12. Avoid any written agreements

Like you read earlier, policyholders also have to be cautious about any kind of extortion that an insurance company might indulge in. This is why it is advisable to avoid any kind of written agreement that your insurer might ask for, to confirm the claim offer put on the table.

If you think that the claim you are receiving is not satisfactory, don’t agree with it!

13. Accept the claim only if you are sure that it’s sufficient.

A lot of policyholders don’t understand the right they have over their insurance policy that they pay a regular premium for. If a claim offer is not what you expected, you don’t need to accept it.

an insurance grievance mechanism has been developed for the sole reason of dissatisfied policyholders. Don’t give in to something that you are not satisfied with, you have every right to fight for what's rightfully yours!

14. Your claim may get rejected if you have participated in illegal activities.

This ones quite obvious but also necessary to put out there. If your car met with an accident directly or indirectly because of the illegal activities you participated in, your claim is bound to get rejected.

Illegal activities that are forbidden are - Drugs, drinking and driving, using the car for any other illegal purposes, etc.

Procedure on how Car Insurance Claims Work

It’s quite natural to panic when your car is even slightly damaged and that panic might even turn into a rage in case it was stolen. But those emotions are not going to help you resolve the instant financial burden imposed on you, it's just going to make you more nervous.

But if you were wise enough to insure your car, the only thing you can do after this unfortunate event is to stay calm and make sure your insurance company reimburses you for the loss you just incurred.

If your car was stolen, vandalized, damaged in an accident, or by natural calamity, a claim settlement process can be a burden to go through when you're in such an anxious state, but for the process to happen smoothly with no delays, it's important to stay calm and do your research.

The following is a stepwise procedure for a third party claim (if there is another party involved in the accident) /for theft and vandalization.

Step 1 - File for an FIR

File an FIR with the nearest police station immediately! If your case needs to be escalated and legal proceedings are required, an informal complaint will not work, you would have to register an FIR about the accident/theft/vandalization with the local police.

If your car was stolen, the police are going to start searching for your vehicle and if they cannot find it, they will issue a “non-traceable certificate” that you would have to submit to your insurance company. (might take about a month)

Step 2 - Intimate your Car Insurance Company

The next thing you need to do after calling the police is to call your insurance company at the earliest so that there aren't any delays in your claim settlement process. (Call on their helpline number)

Give your insurer all the information about the incident (venue, date, and location), and please don’t hide any details, it might be perceived as deceit.

You would also need to submit these documentations below to your insurer, (while filing for the claim)

1. Copy of your driver’s license

2. Claim form

3. Car registration certificate,

4. FIR

5. Copy of the first two pages of your insurance policy.

6. You might also need a detailed letter addressed to the Road Transport Office (RTO)

7. If your car was stolen, 2 sets of your car keys would be required (your claim might get rejected if you don’t have the keys to your car) along with the “non-traceable certificate’ that your police will issue.

8. If your car was stolen, You need to transfer your stolen Car’s RC in the favor of your car insurance company once the police submit a final ‘non-traceable report’.

Step 3 - Collect Evidence

It's always better to have evidence that could serve as valid proof and can back up your claim request especially since it was involved in an accident/theft/vandalization.

Here is some evidence that you could use-

1. Pictures and videos of the damages and accident scene, or crime scene.

2. Note down the name, contact number, and addresses of witnesses and other parties if any.

3. Take a picture of the insurance policy document of the third-party involved as it may help avail third-party liability claims.

Step 4 - Surveyor's Inspection

Every car insurance company assigns a surveyor who inspects the accident location or crime scene, Once he is done assessing the damage and repairs if any he then compiles a report called the “schedule of works” which is submitted to the insurer.

The primary function of a surveyor is to investigate if there is any swindling involved.

Hence, disclose all the information about the incident to the surveyor, if you have collected any evidence (recordings or pictures, name and contact details of witnesses or a third party) that would help you strengthen your case, submit them to the surveyor so that he has a clearer picture.

Sometimes, if absolutely necessary your insurance company might just send a surveyor right after you informed them.

Step 5 - Claim Settlement

If you were involved in a third party accident,

Once the surveyor has evaluated the whole scenario and made a decision, the insurer will then settle the claim with the third party.

If there are damages in your car, you have two payout choices to settle your claim-

1. Cashless claim - Get it repaired from a repair shop that your insurance company has prescribed and the repair cost will be paid by your insurer directly to the repair company

2. Reimbursement claim - Get your car repaired by any repair shop, save all bills and receipts that you have paid from your pocket and get them reimbursed by your insurance company.

If your car was stolen, It will take around 3 months (from the date of filing FIR) for your insurer to generate the Insured Declared Value (IDV) of your vehicle which is the amount then approved as per the surveyor’s report.

Car claim settlement if the damage was done by the insured

Step 1 - Intimate your Car Insurance Company.

Call your insurance company at the earliest so that there aren't any delays in your claim settlement process. (Call on their helpline number)

Give your insurer all the information, venue, date, and location of the incident, don’t hide any details.

You would also need to submit these documentations below to your insurer, (while filing for the claim)

1. Copy of your driver’s license

2. Car registration certificate

3. Copy of the first two pages of your insurance policy.

Step 2 - Collect evidence

It's always better to have evidence that could serve as valid proof and can back up your claim request.

Here is some evidence that you could use-

1. Pictures and videos of the damages.

2. Note down the name, contact number, and addresses of witnesses if      any

Step 3 - Surveyor Inspections

Every car insurance company assigns a surveyor who inspects the accident location or crime scene, Once he is done assessing the damage and repairs if any, he then compiles a report called the “schedule of works” which is submitted to the insurer.

The primary function of a surveyor is to investigate if there is any swindling involved.

Hence, disclose all the information about the incident to the surveyor, if you have collected any evidence (recordings or pictures, name and contact details of witnesses or a third party) that would help you strengthen your case, submit them to the surveyor so that he has a clearer picture.

Sometimes, if absolutely necessary your insurance company might just send a surveyor right

Step 4 - Claim Settlement

If there are damages to your car, you have two payout choices to settle your claim

1. Cashless claim - Get it repaired from a repair shop that your insurance company has prescribed and the repair cost will be paid by your insurer directly to the repair company.

2. Reimbursement claim - Get your car repaired by any repair shop, save all bills and receipts that you have paid from your pocket and get them reimbursed by your insurance company.

Things to keep in mind while claiming for Car Insurance

1. Fill the claim form accurately with no mistakes, because if there are even minute ones, your claim might be perceived as insurance fraud and might require further investigation.

2. Read your policy document - To know the formalities of the claim settlement process, the exclusions, and inclusions of your cover, and the extent of your coverage; read the policy document carefully.

3. Record all expenses to get them reimbursed by your insurance company at the time of your claim settlement. (Car repairs, Personal injury treatment, etc)

4. To avoid any confusion and misrepresentation of your case, make a note of the name of the representative you have spoken to and the position they hold in your insurance company, you might need it if your case is escalated.

5. If you have purchased a second-hand car, make sure that the insurance policy is transferred to your name, as your claim will get rejected if it's not.

6. Moving your car away from the accident scene either might delay your claim process or decrease your claim value or your claim might even get denied. (if moving your car causes further damage, your insurer might not cover those costs)

7. Don’t start any repair work before taking approval from the insurer.

8. Don’t settle with the third party before approaching your insurer, It might be tempting to settle on the spot with the third party involved, but don’t get carried away.

9. Don’t lose your temper with anyone (especially the third party)

10. Don’t hide any information or provide any wrong information to your insurance provider.

11. Don’t communicate anything with the third party without intimating your insurer.

12. Don’t give a written agreement to your insurer before you have done your home-work (Read everything about car insurance claim settlements so that you know you’re not being fooled)

13. Don’t settle with your insurer in a hurry, if you are not happy with the final settlement, you don’t have to accept it, ask your insurer to relook into your case.

14. A Non-traceable report is given to you by the police, stating that your insured car is untraceable. This document is necessary to settle your claim and might take a month to be issued.

15. You would need to obtain a duplicate RC book from the road tax officer’s office.

16. If your car was purchased on loan then the insurance company will compensate the payout amount to your financer, and you will need to pay the balance amount.

Do's and Don'ts of Car Claim Insurance Process

A car is a luxury to own and usually, luxury assets like these need to be insured for their protection and to ease the financial burden imposed on you during an unforeseen incident.

However, when something unfortunate happens to your prized possessions, it’s quite natural to lose your mind even though you know that the insurance policy you have, will take care of you.

While filing for a claim settlement it's important to always be in control of your mind, as even the tiniest mistake could cause your claim to get delayed or rejected.

A claim request can be made either if your car has met with an accident, it was vandalized, it was stolen, or if it was damaged by a natural calamity (floods, landslides, fire, etc.)

Here are some Do’s and Don’ts that you could keep in mind while filing for your car insurance benefits.

What you can Do for Car Claim Insurance Process

1. File an FIR with the nearest police station

If your case needs to be escalated and legal proceedings are required, an informal complaint will not work, you would have to register an FIR about the accident/theft/natural disaster with the local police.

2. Intimate your motor insurance provider

The next thing you need to do after calling the police is calling your insurance company at the earliest so that there aren't any delays in your claim settlement process.

You would also need to submit these documentations below to your insurer,

1.    Copy of your driver’s license

2.    Car registration certificate,

3.    FIR

4.    Copy of the first two pages of your insurance policy.

5.    You might also need a detailed letter addressed to the Road Transport Office (RTO).

3. Ask you insurer to assign a surveyor

Every car insurance company assigns a surveyor who inspects the damage or crime scene, he/she investigates if there are any insurance frauds or the claim request is genuine. Once he is done assessing the damage and repairs if any and compiles the reports, a “schedule of works” prepared by him is submitted to the insurer.

Make sure a surveyor visits your accident scene so that your legalities are in place.

4. File the claim form carefully

It is quite natural to be anxious and angry when something tragic happens, but that’s not going to help you here, in fact, it would be more difficult to claim your insurance benefits.

Fill the claim form accurately with no mistakes, because if there is even a minute one, your claim might be perceived as insurance fraud and might require further investigation.

To avoid this unnecessary delay, fill the details accurately by yourself.

5. Collect Evidence

It's always better to have evidence that could serve as valid proof and can back up your claim request. Here is some evidence that you could use-

1.    Pictures and videos of the damages, accident scene, or crime scene.

2.    Note down the name, contact number, and addresses of witnesses and other parties if any.

3.    Take a picture of the insurance policy document of the third-party involved as it may help avail third-party liability claims.

6.  Read the policy document carefully

To know the formalities of the claim settlement process, the exclusions, and inclusions of your cover, and the extent of your coverage, read the policy document carefully in detail so that you know where you stand.

You can also visit your insurer’s website and read their Frequently asked questions (FAQs)

7. Maintain a record of the bills and expenses incurred concerning your claim.

From the time of the incident till the final claim settlement, there would be some expenses that you might have incurred (Car repairs, Personal injury treatment, etc), record all these expenses so that you can get reimbursed by your insurance company at the time of your claim settlement.

8. Make a note of all the representatives of the insurance company you have spoken to.

To avoid any confusion and misrepresentation of your case, make a note of the name of the representative you have spoken to and the position they hold in your insurance company, you might need it if your case is escalated.

9. Make sure you know the difference between depreciated or Actual Cash Value and Replacement Cost.

Depreciated value - All cars depreciate at different rates, usually, a new car will depreciate 20% in the first year, 15% each year after that, and after 10 years, it's worth around 10% of the original value.

Some insurance companies might consider the depreciation value before settling your claim, make sure you know how to calculate the depreciation rate of your car so that you don't settle for any less.

Actual Cash Value (Insurers prefer this while reimbursing their policyholders) - ACV is also known as market value and is basically the original value minus the replacement cost and depreciation.

Replacement Cost - Replacement cost is the value that the insurer agrees to pay to replace the car according to the current market value.

10. Change the name of the insured if you have bought a second-hand car

If you have purchased a second-hand car, make sure that the insurance policy is transferred to your name as if it is not, your claim will get rejected.

11. Know the types of payout options

1. Reimbursement Claim: The policyholder pays the car repair shop directly and collects the repair bills and receipts that need to be submitted to the insurance company or the surveyor. The company then pays the policyholder within a specific period from the document submission date.

2. Cashless Claim: Your insurer will approve the claim amount and it will be communicated to the specific workshop directly. Basically, the Insurer will pay for the repairs directly to the concerned workshop.

What you don't have to do for Car Claim Insurance Process

1. Don’t move away from the accident location

Moving your car away from the accident scene either might delay your claim process or decrease your claim value (if moving your car causes further damage, your insurer might not cover those costs) or your claim might even get denied.

Just stay at the accident spot, collect evidence, and intimate your insurance company, they could even send a surveyor at the spot if it is necessary.

2. Don’t start any repair work before taking approval from the insurer.

If you start any repair work before taking approvals, it might tamper with the evidence and your insurer might not get a clear picture of the damage. This may lead to a delay or even a repudiation of the claim.

3. Do not make any settlements with the third party

It might be tempting to settle on the spot with the third party involved, but don’t get carried away. They might lure you to settle the damages informally without filing a police complaint or by not informing the insurance company, but do not get influenced by this, always remember that an FIR will help you file your insurance claim and your insurer might compensate higher than the third party.

4.  Don’t lose your temper with anyone (especially the third party)

Expressing your anger and distress with the third party is not going to leave you in a good position, this might be the first instinct but it's not going to do any good, worst-case scenario, the person you collided with might run away and you won't get a chance to collect any evidence. So, stay calm!

5. Don’t hide any information or provide any wrong information to your insurance provider.

This might even be a silly mistake or might be deliberately, but if you hide any information or lie about something to your insurer, an investigation is bound to happen and your claim might even get rejected as it would be considered insurance fraud.

6. Don’t communicate with the third party without intimating your insurer.

Your third party might send you a legal notice about the claim, do not reply to any such legal document, consult a lawyer first (or reach out to us Register here), or your insurance company.  

Even making any financial commitments without looping your lawyer or insurer is risky. Refrain from any communication without consulting your legal counsel.

7. Don’t give a written agreement to your insurer before you have done your home-work.

It’s always better to do your research first, study your policy document, know what’s included and excluded before you sign any document that your insurer has sent you.

Hiring a lawyer would be a good idea! (Register here if you’re seeking legal guidance, we at Insurance Samadhan are experts in dealing with all kinds of insurance grievances)

Remember, whatever your insurance company offers you, it's not the final ultimatum! You don’t need to settle for less if you don’t want to, you should always fight for what you think you deserve.

8. Don’t settle with your insurer in a hurry

Insurance companies do their best to compensate for your losses, but this is always subjective. The final settlement offer might not be the amount you thought you would get but insurers would always tell you that this is the best they could do.

As a regular premium payer, you have every right to ask for what you think is the right amount.

Hence, do not accept a cheque or Demand draft of the “final settlement” unless you’re satisfied with it.

9. Your claim might get rejected if you have been involved with any of these following-

1. Driving under influence (DUI). It is a legal offense to drive after intoxication with alcohol or drugs.

2. Indulging in rash driving or street racing.

3. Using your personal car for commercial purposes.