How to go about a Motor Claim for Own Damage of Car

Fairly common question considering the fact that one to two of the vehicles insured meets with a claim.


The claim procedure is simple if understood clearly. I try and give below the procedure, documentation and also the reasons for the documentation requirement, wherever possible.

As soon as possible after the event giving rise to a claim, be it accident or fire or otherwise, the insurers are to be notified (some insurers require a written notification). The vehicle may then be moved to a garage where an estimate of repairs is made out. In the meantime, the insurer goes about the process of alloting a claim number and sends you the claim form.

This claim form along with the estimate is to be given to the insurer. A surveyor is deputed to assess the loss and this is done in the garage from where the estimate is obtained. The vehicle should, therefore, remain in the garage during assessment to enable the surveyor to understand the loss and also take photographs.

The surveyor then proceeds to finalise the assessment with the garage person and authorises repairs.

The following further documents need to be produced to the surveyor.

1. Vehicle Registration Book - This gives the ownership details and hence the proof of ownership
2. Driving Licence - if the vehicle was in movement during the loss causing event and is required to establish that the person driving the vehicle was entitled to drive it.
3. FIR - First Information Report given to the Police - This is mandatory for theft claims and insurers insist for the same in case of large losses or those involving third parties
4. Undeductable certificate issued by Police authorities in case of theft claims

In case your repairer's garage provides cash less claims settlement in arrangement with the insurers, then you would be required to pay your share of the claim which is usually a sum of the cost of disallowed repairs and parts, depriciation portion of the parts allowed and replaced, value of salvage and the deductible to be borne by you. The repairer thereupon proceeds to collect the payment from the insurer for the claim amount.

In other cases, you would have to settle the repair bills and on submission to the insurer get reimbursement as per the repairs and replacements allowed subject to deduction of your share as detailed above.

Some insurers would also expect you to sign a discharge form absolving them of further liability out of this event.

Motor Insurance in India

Motor Insurance in India is of two types normally - The basic one which satisfies the statutory obligation of the vehicle owner and called Act Insurance or Third Party Insurance and the more expensive one which includes the insurance for the vehicle as well.

Third Party Insurance, much unlike in western countries, is very cheap. For example, the premium component of third party insurance in a full insurance policy comes to about 5% only. This makes it more popular form of insurance taken by many. A great part of the motor third party insurance premium is being subsidised by the Own Damage Premium collected.

Comprehensive insurance rates hover between 1.50% to 3.50% depending on the type of vehicle that is being insured and are of inexplicable logic at times. While the private car insurance costs a little over 3% for the own damage portion, the model of car when insured as a tourist taxi costs slightly higher at only 0.15% more in certain cases. This is despite the fact that a tourist taxi is used more extensively than a private car and as such a greater risk.

The Own Damage premium rates are greatly reduced good driving record proven by NIL Claims. The No Claim discount is as high as 65% in case of cars and are transferable from one car to another car of the same owner. No Claim discounts go with the owner and not the vehicle in case of sale of the vehicle.