When You Shouldn’t File a Car Insurance India Claim?
Have you hit your car recently or found its looking glass broken after getting back to the parking lot post shopping? With most of the car owner, the reaction to such fender benders is – “Oh No, it’s damaged? But nothing to worry, the insurance policy will take care of it”. Perhaps, you would also respond in the same way on seeing your car slightly damaged. Isn’t it? Dear reader, claiming Car Insurance India for every little injury to your car is not the correct course of action every time. Take a look at some of the situations when you shouldn’t file a compensation claim:
Where the cost of repairs is less than the NCB (No Claim Bonus)
With most of the car insurance policies, if you don’t register any claim in the previous policy year, you are entitled to receive around 20% discount on the premiums of the following year. This benefit is called NCB or No Claim Bonus. Generally, car insurance premiums are divided into two parts – damage premium due to self and third party damage premium. The No Claim Bonus benefit is applicable to the former portion. Also, it comprises over 80% of the total premium of the Car Insurance India. Therefore, the amount you get to receive as benefit is considerable even if you don’t count the third party damage premiums. The illustration given below will provide you with a better insight:
Example - Mr. Sinha has a new car and he shells out an amount Rs. 10, 000/- as total premium, of which around Rs. 8000/- is the portion for self damage premium. Right now his vehicle is in the 2nd year under the insurance protection. So, the NCB would be 20% of the self damage portion, that is Rs. 1600/-. If his car repairing cost (at an authorized service center) exceeds this amount, filing a claim is a good idea, but if not then he should not do that.
A gentle reminder – making the payments for minor car repairs from your pocket can actually help you save some money by keeping the costs of premium down.
When someone else (third party) can pay out for the repairs
If this is the 5th or 6th years of your car insurance policy and you haven’t made any claims till date, then you can expect huge No Claim Bonuses. Suppose - your car gets damaged in an accident all of a sudden. You have 3 options in this regard. Firstly, pay for the repairs on your own. Secondly, register a compensation claim. Thirdly, go for 3rd-party compensation claim. You can go for the last option, if someone else is at fault. Although it can be a little cumbersome, but taking the right step at the right time can surely help you get through.
Some of the major aspects related to such claims are:
- You need to file a third party Car Insurance India claim at the MACT (Motor Accident Claims Tribunal) and not at a civil court. That’s because the latter does not make decisions regarding motor accident compensation claim.
- The claimant has to lodge a complaint (FIR) with a local police station and get a charge sheet. The more proofs you have in your support, the higher are the chances of getting compensated under third party claim.
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