6 Common Mistakes To Avoid While Filing A Car Insurance Claim
As per the Motor Vehicle Act, 1988, it is compulsory for all car owners in India to purchase a third-party car insurance policy. Riding the car without a valid license can attract a hefty fine. Apart from being a legal requirement, having an insurance cover for your car is vital from the financial protection point of view in the event of any mishap like an accident, car theft, or damage to the car due to natural calamities.
Many times, people complain of car insurance claim rejection or getting insufficient compensation. This usually happens because most people do not have sufficient knowledge about the steps involved or they commit mistakes while filing the claim.
The common mistakes you must avoid while filing a car insurance claim:
1. Not informing the police
Often, in the event of an accident, people fail to notify the police to avoid legal hassles. However, if you want to claim for the losses occurred from the accident, it is paramount that you inform the police immediately after the accident. Sometimes, the other party that is involved in the accident may try to settle the matter without informing the police. You must not agree to this as not informing the police about the accident is illegal. Moreover, a police FIR is an essential document that the insurance companies require to initiate the car insurance claim settlement process.
2. Not informing the insurance company
Just as it is vital to report the accident to the policy, it is paramount that you inform the car insurance provider about it. Usually, most insurance companies have a window or 24 – 72 hours to report the accident. Failing to report the accident may increase the risk of your claim application being rejected.
3. Running away from the accident spot
One of the most common mistakes that people commit during a car accident is that they run away from the spot or move their vehicle. However, to avoid your claim getting rejected, you must not move from the place; you must take pictures of the scene as a proof to support your car accident insurance settlement claim. The evidence will also help you prove your innocence in case of a police investigation. If you need any medical assistance, you should arrange for it without moving your vehicle. Lastly, you must get a statement or testimonials from the witnesses near the accident spot. This will further help you validate your settlement claim.
If you meet with a car accident, it is natural that you may feel stressed and panicked. But, being stressed in such a situation will only worsen the problem. You should remain calm and refrain from arguing about the situation. You must instead focus on finding a solution and think about how you can get out of the situation without causing any damage to self and other parties.
5. Paying out of pocket
If you get involved in a car accident, wherein the third party suffers from a minor injury, or their property gets damaged, you must refrain from paying the compensation out of your pocket. This is a bad practice for many reasons. Firstly, the injuries to the third party may seem to be minor at the time of the accident but may become serious eventually. Also, the damages to the vehicle may develop whiplash after some time.
Secondly, compensating the third party for their damages out of your pocket without the consent of the insurance company is illegal. If you pay someone and if they file a claim or a suit against you, the insurance company may deny your car accident injury claim payment because you have violated the policy condition.
6. Accepting ‘final payment’ cheque
Sometimes, the insurance company may try to settle the claim by issuing a ‘final payment’ cheque. You should avoid accepting the cheque unless you are convinced that the amount is sufficient and covers all your damages. Most people tend to take the cheque because they believe that the claim process is tedious. But, if you follow the rules correctly, you can easily file car accident claims online, and there is hardly any chance of rejection.
Following the rules correctly and being calm while filing the claim is vital to recover the losses and get appropriate compensation from the insurance company.