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The journey of car insurance begins with obtaining the right quote and concludes with a seamless claim settlement. A good insurance company focuses on providing a hassle-free claim settlement experience to its policyholders in the case of any liability.
But what is a car insurance claim settlement?
A car insurance claim settlement is the process through which an insurer verifies a claim and pays for the losses covered under the policy. It ensures financial support during accidents, theft, or damage. It also helps the policyholder to repair the car or recover losses without heavy out-of-pocket expenses.
To know about the Cashless Car Insurance Claim Settlement Process and much more, join us till the end of this blog.
Types of Car Insurance Claim Settlement
There are mainly two types of car insurance claim settlement offered by insurance companies:
1 Cashless Claim Settlement
As the name suggests, your car is repaired without paying any amount directly at the repair garage. In a cashless claim, the car is repaired at a network garage of the insurance company. The insurer directly settles the repair bill with the garage, and the policyholder only needs to pay non-covered expenses, if any.
2 Reimbursement Claim Settlement
In a reimbursement claim, the car is repaired at a non-network garage. The policyholder pays the repair cost first and later submits the required documents to the insurer. After submission and approval of all the required documents, the amount is reimbursed.
Cashless Car Insurance Claim Settlement Process
If you are wondering how a car insurance claim settlement works, a cashless car insurance claim settlement process makes things much simpler. In this process, your car is repaired at an insurer’s network garage, and the insurance company directly settles the repair bill with the garage.
Let's learn more about the cashless car insurance claim settlement process:
1 Step 1: Register the Claim
Inform your insurance company as soon as the accident happens. Share the basic details of the incident and upload clear photos of the damage for initial verification.
2 Step 2: Vehicle Inspection
The insurer appoints a surveyor to inspect your car. Keep all necessary documents ready so the inspection and verification can be completed without delay.
3 Step 3: Get the Car Repaired
After the inspection is approved, take your car to an authorised network garage for repairs.
4 Step 4: Claim Settlement
The claim is settled based on the type of claim chosen:
- Cashless Claim: The insurer directly pays the approved repair amount to the network garage.
- Reimbursement Claim: You pay the repair cost first. Then, submit the bills and receipts to the insurer for reimbursement.
Note: Square Insurance Brokers Pvt. Ltd. claim specialists are available to assist and guide you throughout the car insurance claim process. You can reach them at 1800 120 5430 or claimsupport@squareinsurance.in.
What is Claim Settlement Ratio and Why It Matters?
The claim settlement ratio (CSR) shows the percentage of claims an insurance company has settled during a financial year. A higher ratio indicates that the insurer is more reliable when it comes to settling claims of the policyholder. Companies with a high claim settlement ratio are more likely to approve and settle claims smoothly.
Here are some points that prove the role of claim settlement ratio in buying a car insurance policy:
- A higher ratio means the insurer is more reliable and trustworthy.
- It helps you understand the insurer’s claim approval record.
- Companies with a good ratio usually offer smoother claim experiences.
- Companies with a good settlement ratio reject lesser claims during emergencies.
- It helps you choose an insurer that supports customers at the time of financial and legal need.
Car Insurance Claim Settlement Ratio of Different Car Insurance Companies
Here are the car insurance claim settlement ratios of different insurance companies:
| Category | Insurance Company | Claim Settlement Ratio (CSR) |
|---|---|---|
| Public | New India Assurance | 92.43% |
| Public | United India Insurance | 81.63% |
| Public | National Insurance | 84.03% |
| Public | Oriental Insurance | 88.05% |
| Private | HDFC ERGO General Insurance | 88.22% |
| Private | Universal SOMPO | 90.72% |
| Private | Generali Central | 94.29% |
| Private | Raheja QBE | 92.63% |
| Private | Go Digit General Insurance | 90.72% |
| Private | IFFCO TOKIO General Insurance | 89.09% |
| Private | Liberty General Insurance | 90.10% |
| Private | SBI General Insurance | 90.15% |
| Private | ICICI Lombard General Insurance | 85.45% |
| Private | Royal Sundaram General Insurance | 91.56% |
Note: The above-mentioned CSR (Claim Settlement Ratio) is published in the 8th edition of General Insight by IBAI (Insurance Broker Association of India).
Common Reasons for Claim Rejection in Car Insurance
The following reasons may lead to the rejection of a car insurance claim rejection:
- Policy Lapse The insurer can reject your claim if your policy has expired or not been renewed for any reason.
- Incomplete Documents Missing documents can delay or even cancel your claim settlement process.
- Violation of Policy Terms Claims may be rejected if policy rules are broken, such as drunk driving or driving without a valid licence.
Tips for Smooth Car Insurance Claim Settlement
Here are the tips for a smooth car insurance claim settlement process that you should consider while filing your car insurance claim:
- Inform the Insurer on Time Always inform your insurance company immediately after an accident or damage.
- Choose Network Garages Getting repairs done at network garages helps you enjoy cashless and faster claim settlement.
- Keep Documents Ready You should keep all required documents like policy copy, RC, driving licence, and repair bills handy to avoid delays.
- Do Not Start Repairs Before Inspection Wait for the surveyor to inspect your car before starting repairs, unless it is an emergency.
- Provide Correct Information Share accurate details about the accident to avoid confusion or claim rejection.
- File an FIR When Required An FIR is mandatory in cases of theft, major accidents, or third-party injuries.
- Follow Policy Terms The policyholder should follow all the policy rules, such as driving with a valid licence and not driving under alcohol influence.
- Track Your Claim Status Regularly check your claim status and respond quickly if the insurer asks for more details.
Conclusion
A car insurance claim settlement is the final and most important step of your insurance journey. It helps you get financial support when your car is damaged, stolen, or meets with an accident. Understanding the claim process, types of settlement, and common mistakes can make the experience stress-free.
This not only ensures timely claim approval but also gives peace of mind when you need it the most. Also, the right broker can facilitate a seamless car insurance claim settlement.
FAQs
A car insurance claim settlement is the process by which the insurance company checks your claim and pays for the losses covered under your policy. The claim settlement can be after an accident, damage, or theft.
There are two main types of car insurance claim settlement: cashless claim settlement and reimbursement claim settlement.
The claim settlement ratio shows the number of claims an insurer has settled compared to the total claims received in a year. A higher ratio means the company is more reliable in settling claims.
In a cashless claim settlement process, the car is repaired at a network garage, and the insurer directly pays the repair bill. This claim settlement does not include deductibles or non-covered costs generally.
In a reimbursement claim settlement process, the car is repaired at a non-network garage. The policyholder pays the repair cost first and later submits bills to get the approved amount reimbursed.
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