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11 Mistakes to avoid when filing a car insurance claim

Team AckoJan 17, 2024

A carelessly filed car insurance claim can easily lead to rejection or a lower claim settlement. However, you can experience a smooth claim process and avoid delayed claim settlements and rejections by knowing what you should and should not do. Here are 11 mistakes to avoid when filing a car insurance claim.

Contents

Avoid these 11 mistakes while claiming car insurance
Takeaway
Frequently asked questions

Avoid these 11 mistakes while claiming car insurance

If you own a car, you need to insure the vehicle with the mandatory Third-party Car Insurance policy. Accidents can cause severe loss to a third party or their property. Also, if you have the Own Damage cover, only then your vehicle is covered against losses. To mitigate the loss, the first thing you should do is file a claim as soon as possible.

The procedure to file a claim is simple; however, you need to ensure that all the required information and documents you provide are correct and free of glitches. The claims team will investigate all claims. Based on the investigation, they prepare a report for the insurer’s approval or rejection of the claim. Here are some of the common mistakes that you should circumvent while raising a car insurance claim.

1. Filing a claim when you shouldn’t

If you have purchased the Own Damage cover for your car and caused minor damage to your vehicle, you probably shouldn’t raise a claim. Here are two things to take care of:

Deductible amount: If the repair cost is less than your deductible (compulsory and/or voluntary deductible), you won’t get anything anyway. Your claim will be considered closed and no settlement will be processed.
NCB Discount: Suppose the repair cost is slightly higher than your deductible. In that case, it is not probably worth it either. This is because you will lose out on the No Claim Bonus (NCB) discount that you earn for not raising any claims during the policy period. Only raise claims if the repair cost is higher than the accumulated NCB discount.

2. Not informing the police

In every situation, the biggest mistake you can make is not informing the police. You may be trying to avoid legal hassles. However, here are two cases where you need to inform the police about the incident.

Accidents: If you want to raise your claim for the losses incurred in the accident, you must inform the police and file a First Information Report (FIR). If the other party is at fault, they may try to settle the matter without informing the police. You must not agree to such a settlement. By reporting the accident to the police, you document what happened. Moreover, an FIR is an important document that insurers require to initiate the claim settlement process.
Theft: If you want to raise your claim for losses incurred due to vehicle theft, you should inform the local police and file an FIR.

3. Not transferring the policy to your name

If you bought a preowned car and forgot to transfer the policy to your name, you will be unable to raise a claim for the damages. The policy will be considered null and void because it is not under your name. It is the responsibility of the seller to transfer the insurance policy within 14 days of buying the car. Ensure you complete the documentation regarding the ownership of the vehicle to avoid rejection of the claim.

4. Not informing ACKO within the set timeframe

ACKO should be notified immediately of any type of contingency related to the vehicle. By not qualifying the claim, you have to bear the repair cost. Inform us by calling us or emailing at [email protected]. You can also raise the claim through our website or mobile app through an internet-enabled smartphone/computer.

5. Moving the vehicle

Evidence plays a vital role in car insurance claims. Moving your car away from the accident spot is like tampering with evidence. You don’t have to just face the rejection of the claim, but also have to bear the cost of the damages. Wait for the police to arrive and investigate the accident so that the correct information is captured in the FIR and the accident is documented accurately.

6. Use of private vehicle for commercial or business purposes

A car insurance policy is limited to the use of the insured car for private purposes. So if an accident occurs while using your vehicle for business activities—for example, letting someone else pay you for renting your vehicle— ACKO has the right to reject your claim. The policy will be considered void, and you have to bear the cost of repairing the damages to the car.

7. Use of the car by an unregistered driver

Is your car being driven by a person who does not have a driving licence? Then, your claim will be rejected since an unregistered driver drove the vehicle. Ensure that you let registered drivers use your car to avoid unwanted financial liabilities since you have to bear the repair cost.

8. Driving under the influence of intoxicating substances

Not just damages to your vehicle, you could be injured in an accident while driving the insured car in an inebriated state. Your claim will be considered rejected since the policy does not cover liabilities during such circumstances.

9. Exceeding passenger limit

If your car is damaged while being used by passengers exceeding the limit stated in the policy, you will not be able to claim the damages. It is essential not to make the mistake of carrying more than the required number of passengers to avoid disqualifying your claim against the policy.

10. Non-declaration of CNG/LPG kit

If you have installed a CNG or LPG kit in your car, you must inform ACKO about the same. ACKO will update the installation of the CNG/LPG kit in your policy so that claims are settled based on the information provided by you. Your claim stands a chance of being rejected if you have not declared the installation of such kits.

11. Others

Damages or losses that are not mentioned in the policy are not covered. Hence, avoid raising claims for damages that are beyond the scope of the policy coverage. For example, damages to the engine are not covered under the Own Damage cover. However, you can include the Engine Protection Cover add-on for extending the primary plan’s coverage.

Takeaway

Now that you have a clear understanding of the mistakes to avoid while raising your claim, ensure you follow the protocol for a smooth and hassle-free process of filing your claim. Also, know about the coverages and exclusions to steer clear of unpleasant claims experiences. Also, renew the policy within the due date to avoid rejection of claims.

Frequently asked questions

Here are commonly asked questions about car insurance claims.

What happens if I raise a false car insurance claim?

Upon submitting the claim, the claims team will investigate the damages to approve or reject the claim. During such investigations, if the claims team finds false information or details about the accident, ACKO has the right to reject your claim.

Can we file a claim without an FIR?

Yes and no. You need to obtain an FIR from the local police in case of a road accident that results in bodily injury of the third party or death. An FIR is also mandatory in case your car is stolen. However, you need not submit an FIR while filing a claim for minor damages caused by small accidents.

Does filing car insurance claims increase the renewal premium?

No, filing claims against your policy does not increase the renewal premium. The premium is based on the car’s location, age, model, and variant. However, filing a claim during the policy period will lead to the cancellation of the No Claim Bonus (NCB) earned. You will end up losing the discount while renewing the policy.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.