Motor Insurance Claim Process Step-by-Step

Filing a motor insurance claim can feel complicated for customers. As an agent or sales manager, your job is to simplify this process so clients know what to do immediately after an accident. Let’s break down the claim process in simple steps.

🔹 Step 1: Intimation of Claim

The policyholder must inform the insurer immediately after an accident, theft, or damage.
Details to provide: policy number, vehicle number, location, nature of accident, and extent of loss.

👉 Example: A customer’s car collides with another vehicle. He calls the insurer’s toll-free number and registers the claim on the spot.

🔹 Step 2: Document Submission

The insured must submit:

Claim form (duly filled).
Copy of RC, DL, and insurance policy.
FIR (mandatory for theft or third-party injury/death).
Repair estimates, bills, and photographs of damage.

👉 Example: In a theft case, the owner must provide the FIR, RC, and policy copy along with the claim form.

🔹 Step 3: Appointment of Surveyor

The insurer appoints a licensed surveyor to inspect damages.
Surveyor’s job: assess extent of loss, verify accident facts, and estimate repair cost.
If loss > 75% of IDV, claim is treated as Constructive Total Loss (CTL).

👉 Example: Surveyor inspects a car damaged in floods. Repair cost = 80% of IDV → declared total loss.

🔹 Step 4: Loss Assessment & Approval

Surveyor submits report to insurer.
Insurer checks policy coverage, exclusions, and depreciation.
Based on this, claim amount is approved.

👉 Example: Repair bill ₹1.2 lakh, surveyor recommends ₹1.1 lakh after applying depreciation on plastic parts.

🔹 Step 5: Claim Settlement

Cashless settlement: Insurer pays directly to network garage.
Reimbursement: Customer pays first, insurer reimburses later.
Third-Party Claims: Settled via Motor Accidents Claims Tribunal (MACT).

👉 Example (Third-Party): If insured car injures a pedestrian, the case goes to MACT, which decides compensation. The insurer pays as per tribunal award.

✅ Special Settlement Methods Mentioned in IC-72

Compromise Settlement – Out-of-court settlements between insurer & claimant.
Jald Rahat Yojna (JRY) – Quick pre-litigation settlement through a panel of retired judges, doctors, and insurance executives.
Lok Adalat – Special legal forum for speedy disposal of motor third-party claims.

⚖️ Example: Own Damage vs. Third-Party Claim

Own Damage Claim:
Mr. A’s car is hit in a collision. He informs the insurer, surveyor inspects, insurer approves ₹90,000, garage repairs car via cashless settlement.
Third-Party Claim:
Mr. B’s car hits a bike. B’s insurer defends the case at MACT. Tribunal awards ₹3 lakh to the injured biker, insurer pays compensation directly.

💡 Sales Tip for Agents

Encourage customers to call insurer immediately after any accident.
Promote cashless garage tie-ups for convenience.
Highlight add-ons like Zero Dep & Engine Protection which reduce out-of-pocket costs during claims.

✅ Conclusion

The motor insurance claim process may seem legalistic, but with proper guidance it’s straightforward: Report → Documents → Surveyor → Approval → Settlement. For customers, claims are the real “test” of insurance. For agents, ensuring smooth claims means building trust and long-term relationships.

👉 Pitch line: “Insurance is not just about buying a policy—it’s about being protected when you need it the most.”