Top Five Most Common Problems Faced During Insurance Claims

Insurance is technically defined as ‘the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment.’ In terms of vehicles it is called auto, car or motor insurance and may cover the liability of risks in terms of traffic collision, natural calamities, theft, etc.

Auto insurance is the idea of paying small monthly or yearly payments in lieu of risk coverage as and when you need it, provided the claim is ascertained. Auto insurance is different according to regions. In India, auto insurance is legally mandatory upon renewal of your driving permit. Now this is something almost everyone knows and is familiar with. Auto insurance is easy enough to apply for.

It is claiming an insurance policy that is potentially problematic, particularly in India. Here is a list of the most common problems faced by people when trying to claim their insurance policy.

Stale claims

Like any other product, an insurance claim also has an expiry date. Sadly there is no fixed amount of time to claim your amount from the insurer. And quite often it happens that the insurer refuses to pay up or causes problems and poses questions in an attempt to stall or withhold your claim. In order to avoid this, ensure that you process your claim in a timely manner

Insufficient documentation

Getting an insurer to pay up your claims is often never an easy task. It is never enough to simply walk into the claims department and ask for your money. And if the required documents are not in proper order then this adds to the problem in a major way. Always ensure that you are carrying all the required documents required to make this transaction as smooth as possible.

Hazy or unclear insurance coverage

It happens sometimes that the insured does not know exactly what kind of coverage he has and is often ‘duped’ by the insurance companies when trying to file for a claim. This leads to immense frustration on the part of the insured and can be avoided by making sure you know before-hand exactly what kind of insurance coverage you have and what incidents can be claimed.

Choose the correct deductibles

Many insurance companies often make use of insurance ‘tricks-of-the-trade’ where if you don’t specify how much deductible amounts you have to pay they will charge you the standard low deductible amounts. Deductible is the amount you will pay out of your own pocket in case of an accident. At first glance this seems like a favour from your insurance company; however the truth is that the lower your deductible amount, the higher premiums you will pay. Always remember to specify how much deductible you want to pay.

Lack of a police report

Do not ever hesitate to file a police report in case of an accident. It happens quite often that a person feels the accident is too minor or is just a scratch and does not bother to report it to the police or file for a claim. This can only increase your chances of facing tough problems later. Even if you feel the damage is too insignificant, the other driver may file a claims for higher damages than he actually suffered, or in some cases may even file a personal injury claim. Filing a police report protects you from such risks, so ensure it is carried out. All in all, insurance claims have always been a messy business at best and will probably remain so in the near future. Following a correct set of rules and regulations however quite often helps to reduce the hassle and problems associated with this process and keeps frustration levels of both the insurer and the insured at bay. We, at CarDekho, hope that with these methods you may be able to go through your claims process with relative ease.

Photography By - Sitaram Swami