When Not To Claim for Car Insurance

Posted on: Apr 19, 2019 | | Written by:

When Not To Claim for Car Insurance

Published on October 07, 2022. EST READ TIME: 3 minutes

HDFC ERGO is fully committed to making the insurance process easy for motor vehicle owners, which is why it has a zero hassle and quick claims process. However, there are situations where it’s wiser not to claim than to claim and insurance experts step in to share their secrets.

Read on to know more about the car insurance claim process, when not to claim and also useful car insurance claim tips.

Two vital factors to consider before raising a claim

• No Claim Bonus (NCB):

The insurance company offers a discount at the time of renewal of your car insurance if you have not raised your claim during the previous year of the policy. This is a kind of reward known as No Claim Bonus (NCB) . The NCB is important and it can become zero if you have raised a claim or if you have crossed the specified limit of your car insurance. You can get NCB as high as 50%, if all the criteria are met. Hence, think before raising any claim against your car insurance policy.

• Deductibles:

In a car insurance policy, there are two types of deductibles – Voluntary and Compulsory. For both, you need to provide a pre-decided amount from your pocket during claim settlement. Consider this as your minimal contribution during claim settlement.

Benefits of not claiming frequently

Insurance consultants at HDFC ERGO advise insurers “not to claim” when the repairs are minor. If there are mere damages on the vehicle like the mirror has cracked or the headlight has broken or there is a simple paint job, then these things can be resolved with minimum monetary expenses. If you have a ‘No Claim Bonus(NCB)’ on your policy, then by making a claim you will lose the NCB which means that you will not get discount on your next year Motor Insurance Policy Premium not only with current insurer but any Insurer in the Market. Hence, if minor repair costs are way less than the NCB award, then abstaining from registering minor claims will be financially prudent.

When to Claim?

When you are filing for insurance claims, it’s fair to assess the, deductibles, future impact on NCB and condition of future premiums and only then is it advisable to proceed.

If you see that your claim is justified, the amount is substantial and there is no way that third party insurance can be used for covering the claim, then proceeds for car insurance claim. Insurance claims with HDFC ERGO are simple, uncomplicated and can be filed online. You will need your insurance details, registration number, accident details and other particulars. An assessor will evaluate your claim and then you will receive your claim amount.

You can track the status of your claim anytime by the feature “Track your claim” available on our website. In fact there is an entire section on the website dedicated to claims, right from detailing the claims process to providing the form and then addressing queries.

Claims Process of HDFC ERGO

The HDFC ERGO car insurance plan offers all day all year support for all its insurers. There is a hassle free convenient experience in store for you and all you have to do is to call on the toll free number or drop a mail. There are no massive documentation requirements in order to buy insurance or to file a claim and this is why HDFC ERGO is given an AAA rating by the IRDA. This is one of the market’s best car insurance claim settlement ratios. We, at HDFC ERGO, advise you to think before you claim but when you do get around to claiming, it’s wrapped up pretty quick.

Conclusion

Hence, keep the above points in mind while raising a claim for your car insurance policy and make a decision whether you should opt for it or not. Also, if you planning to buy or renew your policy, it is now even easier as you can do it online. Buying and renewing car insurance online can be done in a jiffy. You just need to visit the insurance company’s website and follow the steps mention there.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

10 reasons why car insurance claims get rejected

How to File Car Insurance Claim with Temporary Registration Number?

Car Insurance Claims & IDV - Everything You Need to Know!

How to solve common problems associated with car insurance claims

Learn about car insurance claims without driving license and RC