(a) Vehicle Accident Claims
After the insured submit his claim form and the relevant documents, the insurer appoints a surveyor to
inspect the vehicle and submit his/her report to the insurance company. Insured also get the details of the
surveyor’s report. In case of major damage to the vehicle, the insurer arranges for a spot survey at the site of
The insured can undertake repairs only on completion of the survey. Once the vehicle is repaired, the
insured should submit duly signed bills/cash memos to the insurance company. In some cases, companies
have the surveyor re-inspect the vehicle after repairs. In such a scenario, the insured should pay the
workshop/garage and obtain a proof of release document (this is an authenticated document signed by you
to release the vehicle from the garage after it is checked and repaired).
Once the vehicle has been released, insured should submit the original bill, proof of release, and cash
receipt from the garage to the surveyor. The surveyor sends the claim file to the insurance company for
settlement along with all the documents and Finally, the insurance company reimburses the insured.
In case of an accident, the insurance company pays for the replacement of the damaged parts and the labor
The costs that the insured has to bear include:
A. The amount of depreciation as per the rate prescribed
B. Reasonable value of salvage (to be discussed separately)
C. Voluntary deductions under the policy, if the insured have opted for any
D. Compulsory excesses levied by the insurer
In the insured uses the cashless repair facility, the claim money is paid directly to the workshop or garage.
Otherwise, the amount of claim is paid to the insured.
(b) Third Party Insurance Claim
In the event of a third party claim, the insured should notify the insurance company in writing along with a
copy of the notice and the insurance certificate. The insured should not offer to make an out-of-court
settlement or promise payment to any party without the written consent of the insurance company. The
insurance company has a right to refuse liabilities arising out of such promises.
The insurance company will issue a claim form that has to be filled and submitted along with:
(a) Copy of the Registration Certificate
Lesson 9 General Insurance – Practices & Procedures – Focus Claims 175
(b) Driving license
(c) First information report (FIR)
After verification, the insurance company will appoint a lawyer in the defense of insurer and the insurer
should cooperate with the insurance company, providing evidence during court proceedings. If the court
orders compensation, the insurance company will then do it directly.
(c) Vehicle Theft Claims
In the event of theft of vehicle, the insured should lodge the First Information Report (FIR) with a police
station immediately, inform the insurance company and provide them with a copy of the FIR. He should also
submit the Final Police Report to the insurance company as soon as it is received and Extend full
cooperation to the surveyor or investigator appointed by the company. After the claim is approved, the
Registration Certificate of the stolen vehicle has to be transferred in the name of the company and the
insured needs to submit the duplicate keys of the vehicle along with a letter of subrogation and an indemnity
on stamp paper (duly notarized) to the insurance company