Car Insurance: Does It Good Practice to File Small Claims?

Many of us have faced situations where we have been in the dilemma of whether is it justified to file small claims in situations of accidents, hailstorms, vandalising, or say, negligence. In such cases, it is essential for us to know the types of car insurances available in our country, and how measured is our step.

In India, the two types of car insurances that are available are:

  • Comprehensive Insurance: This insurance covers up for the cases as already mentioned involving calamities whether natural or intended and even cases of negligence such as damage caused to others’ property or yours, and even in acts of robbery or such.
  • Third Party Insurance: This covers one up only when damage is caused to others’ car or property due to collision. But when one is at fault, it fails to come for aid.

Now, one should keep in mind the magnitude of loss, the deductibles that are applicable and the impact the NCB and the premiums for future. NCB stands for “no bonus claim” which is the discount granted by the insurers at the end of one year free of claims to a renewal premium. At the end of one claim-free year, the NCB starts with 20% discount and ends with at least 50% to the highest, with steady increase every year. This is applicable only on the “Own Damage” part, instead of the “Liability” part. Also, while buying car insurance online, one has to remember buying the NCB before registration and only on basis of eligibility, as it is not available to the new owner.

Online four wheeler insurance are provided by Bajaj Finserv. Buying online insurance is an easier and smarter way and this can be done by just filling up personal details and information about the car to obtain quick recovery. The benefits lie in the fact that one can collect brochures and tally the easiest mode of application, package and payment. There are also chances of discounts and deals on online applicants, for instance the ones provided by Bajaj Allianz. While tallying, one can even identify the best car insurance policies available on various companies.

The dilemma that follows is what should be done on situations when the comprehensive insurance doesn’t cover up for the loss that has incurred, and in such a case whether filing a claim would make an adverse effect in the claim history, affecting the renewal premiums. Filing a claim can be of hope or at least of partial hope only when there is negligence can be applied to the other person, who is actually responsible for the damage. This has to be supported by effective evidence which can be meted out by explaining the gravity of the damage caused and the presence of an eager witness.

Mostly, experts advice to not go for filing small car insurance claims as the amount of ‘deductible’ or ‘excess’ which is the amount that is a compulsion for the claim-bearer to pay, and the remaining is addressed to the other deductions which include depreciation and so. Hence, filing small claims becomes pointless where the profit is less as the amount claimed are close to the ‘deductible’ amounts.

The nature of claim, which explains the whether the damage is caused by the buyer or not, is an important factor as that would have an effect on the claim history and the decision of the insurer who might retreat from giving the policy to someone who is not diligent in such a case. However, filing one or two claims in several years is unlikely to make any difference.

Almost everyone has a Car insurance to save themselves from unwanted expenditures, in case of unfortunate events. But, filing a claim, reduces the durability and the return-ability of your insurance. So, it is imperative to understand why one must avoid filing small claims, to reap long-term advantages.

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