Filing a car insurance claim can feel stressful, especially after an accident. But what’s worse? Getting your claim rejected. Common reasons for claim rejections include incomplete documentation, filing delays, policy lapses, or providing incorrect information.
Whether you’re relying on your Comprehensive Car Insurance or a Zero Depreciation Car Insurance plan, even the smallest mistake can delay or derail your claim process.
How to File a Car Insurance Claim Without Errors?
Making a claim correctly is crucial. Here are the key steps you must follow to ensure your claim is processed efficiently:
1. Inform Your Insurer Immediately
Always inform your insurer right after an accident, theft, or damage. Most companies require information within 24–48 hours. Delaying this step could lead to claim rejection.
2. Avoid Moving the Vehicle
If your car is involved in an accident, avoid moving it until an insurance company surveyor inspects it. Tampering with the scene might complicate the claim assessment.
3. Collect Evidence
Take clear photos and videos of the damage, location, and surrounding area. If it’s an accident, gather the details of the other vehicle and any witnesses.
4. File an FIR if Required
A First Information Report (FIR) is usually mandatory for theft, fire, or third-party damage. Ensure the FIR includes all relevant facts and matches your claim details.
5. Fill the Claim Form Accurately
Even a small mistake in the claim form can lead to delays. Double-check all information — vehicle number, policy number, driver’s licence, and incident details.
6. Submit All Required Documents
Typical documents include:
- Claim form
- FIR (if required)
- Driving licence
- Registration certificate (RC) of the car
- Repair bills (if already paid)
Ensure that all documents are valid and up to date.
Understanding IDV and Depreciation in Car Insurance Claims
Claim amounts in car insurance are not random — they depend on a few essential factors. The most important ones are Insured Declared Value (IDV) and depreciation. Here’s what you need to know about IDV in car insurance:
What Is IDV in Car Insurance?
IDV stands for Insured Declared Value. It’s the maximum amount your insurer will pay if your car is declared a total loss (e.g., in theft or a major accident).
IDV is calculated based on the manufacturer’s listed price minus depreciation. It does not include the cost of registration or insurance.
Example: If your car is worth ₹7,00,000 and is two years old, its IDV might be ₹5,60,000 after depreciation. That’s the maximum claim you can receive.
Choosing a higher IDV increases your premium slightly but gives you better protection in case of total damage.
What Is Depreciation in Car Insurance?
Depreciation refers to the reduction in your car’s value over time. It affects how much of the repair cost your insurer will cover.
Parts like plastic, rubber, and glass face higher depreciation rates. A standard Comprehensive Car Insurance policy deducts depreciation from the claim payout.
Here’s a typical depreciation schedule:
- 0–6 months: 5%
- 6 months–1 year: 15%
- 1–2 years: 20%
- 2–3 years: 30%
- 3–4 years: 40%
- 4–5 years: 50%
Why Choose Zero Depreciation Car Insurance?
Zero Depreciation Car Insurance or bumper-to-bumper cover eliminates depreciation deductions during claim settlement.
This means you get full reimbursement for replaced parts, regardless of age or wear.
It’s ideal for new cars or high-value vehicles. Though premiums are slightly higher, the claim amount is also significantly better.
Additional Tips to Speed Up Your Car Insurance Claim
Aside from understanding IDV and depreciation, here are a few more practical suggestions:
1. Renew Your Policy on Time
A lapsed policy is as good as no insurance. Always renew before expiry to maintain continuity and avoid claim complications.
2. Don’t Repair Before Inspection
Wait until your insurer inspects the car. If you repair the vehicle beforehand, your claim might get rejected or the amount reduced.
3. Be Honest
Don’t exaggerate damage or conceal facts. Misrepresentation can not only lead to rejection but also affect future policies.
4. Check Network Garages
Using a network garage (tied-up with your insurer) allows for cashless claim settlement, which is quicker and hassle-free.
5. Keep Track of Claim Status
Stay in touch with the insurer or log in to their portal/app to track your claim. This helps resolve any issue early on.
Getting your car insurance claim approved quickly is all about being accurate, prompt, and informed. Whether you have Comprehensive Car Insurance or a Zero Depreciation Car Insurance policy, following the right process can make a big difference.
Understand your policy terms, know how IDV and depreciation work, and never delay documentation. With these tips, you can reduce stress and ensure that your claim gets settled smoothly and fairly.
Also Read: Which Car Insurance Policy Cover is Best?
