If you go by the everyday news, you would know how common road accidents are. Going by the National Crime Records Bureau (NCRB) data, India recorded over 3.5 lakh case of road accidents during 2020, with over 60% of them caused due to over-speeding. These hard-hitting figures make having motor insurance as crucial as life and health insurance in one’s life, especially during this pandemic when an uncertain environment can lead to several untimely expenses.

The pandemic also changed the mode of mobility for many and led to an increased usage of personal vehicles over shared ones. This has resulted in a steady increase in sales of automobiles which also meant a rise in the demand for a motor insurance policy. Covid has also made way for a more contactless way of buying insurance, which is the online purchase of a policy. But when it comes to online claim settlement, there are a lot of unanswered questions that the policyholders have.

So, here’s a guide on the procedure of claim settlement in online motor insurance. 

How to purchase car insurance online

The online process of obtaining car insurance is relatively easier as this requires minimal documentation. When buying a new policy, all the person needs to do is fill up the insurance company’s proposal form and add the vehicle details to the system. In this case, uploading the last year’s copy of your registration certificate (RC) is not always mandatory. Similarly, “for a policy renewal also, the holder follows the same process of filling in the information of the automobile as per the RC document and previous insurance details in the online proposal form. This is essential, especially when switching a policy from one provider to another. For instance, if someone wants to migrate to another insurance company, then the new company, if in doubt, will internally verify the details with the previous insurer. If details are found to be accurate, the former sends an affirmation that facilitates a smooth transition,” says Ashwini Dubey, Head- Motor Insurance Renewals, Policybazaar.com.

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Once done, an annual premium is calculated according to the Insured Declared Value (IDV). The higher the IDV of the vehicle, the higher the premium amount and vice-versa. So, carefully fill in the particulars as this information works as a base for filing claims. 

How does online claim settlement work?

Many insurance companies are now offering an uncomplicated and straightforward online mode wherein the insurer can file for the claim on their website or app. As per the process, when an accident occurs, the insured is preferably required to inform the insurance company and file the claims online within a few hours. In addition, the customer may also be asked to upload copies of proof such as relevant photos and videos of the damage and incident, a copy of the registration certificate, driving license, among others.

Once filled, the insurance company directs the customer to the nearest network garage and appoints a surveyor who verifies the extent of the damage incurred by using scientific tools and data analytics and shares a repair estimate accordingly. If the customer agrees with the quoted value, the repair work begins. In case the insured prefers another garage, which may be closer to their home, etc., then the procedure is extended. In this, the appointed surveyor evaluates the damage, shares a survey report and raises an estimate. Once approved, the insurance company shares a work starting approval after which the policyholder can initiate the repair work. After completion, the surveyor again scrutinises the restoration, inspects the invoice, compares it with the initial work start approval and submits a final delivery report after which the customer can take their vehicle. The final payment is settled by the insurance company directly with the insured.

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“In short, in order to make a claim, the customer must report the claim; upload copies of proof such as relevant photos and videos, a copy of the registration certificate, driving license, etc. Once done, the assessor uses various tools to analyse the damage and share a repair estimate. If the customer agrees with the quoted value, the insurance company shares a work start approval and repair work begins. When the work is completed, a second survey is conducted to compare repair with initial remarks after which the insurance company credits the amount to the network garage (in case of cashless) or the policyholder’s bank account (in case of re-imbursement),” informs Dubey.

How is the claim amount decided? 

The amount and the extent of the claim amount are decided by the surveyor appointed by the insurance company and are dependent on the type of car insurance policy bought – third party, own damage or comprehensive insurance.

Benefits of claim settlement online

Convenient– With the digital process, the insured doesn’t require personal visits to the insurance company’s branch or meeting their insurance agents. This also makes the process safe, seamless and straightforward. All they need to do is apply as per convenience, either on the company’s mobile app or website. 

Transparency– The absence of an intermediary makes this process more transparent. You can access all documents on the website, read through them, and make an informed choice. 

Zero Paperwork– Online claim settlement filed digitally requires minimal to no physical paperwork. This makes the procedure swift. Furthermore, the soft copy of the claim is also sent to the policyholder’s registered email ID, thereby reducing the turnaround time. In case of any assistance, help is always available in the form of contactless services provided by aggregators. 

Affordable premiums: Online car insurance premiums are cheaper than offline as they involve no commission and physical costs. 

Easier and faster Claim settlement: The settlement of claims in this mode is hassle-free and quick as everything is real-time and backed-up robust tech-based infrastructure.  If insurance is bought from a private company, the insured can expect the claims very quickly. However, this depends on the claim amount and the extent of the damage.

Easy Payment:  Buying car insurance online offers services like reminder notifications that ensure timely renewal of the policy.

What is not covered in online motor insurance?

Mostly, whatever is covered in the offline process is also covered in the online settlement. The insured cannot file a claim in case of gradual and natural wear and tear of the car or its parts or claim for consumable parts such as coolant or fuel. Also, loss or damage caused by a person without a valid driving license, i.e., an expired license or intoxicated, is not covered. Additionally, damage incurred due to misuse as per the manufacturing guidelines.

“It is highly recommended that you do meticulous research before buying a motor insurance policy online. Also, select a policy that best fulfils your requirement, and it is recommenced on opting for add-on covers like no claim protection, engine protection, etc. It will help save on massive costs. So, choose wisely and opt for online claim settlement as this hassle-free service is designed to ease your life,” suggests Dubey.