Car Insurance Claim Settlement Ratio

What is meant by partial claim settlement?

Partial claim settlement occurs when your insurer pays a certain percentage of your claim instead of the whole amount. This may happen if the insurer thinks that the claim that you made is not necessary. In such a case, your claim may not be rejected, but partially settled. To avoid such circumstances, you must read the policy document carefully.

Is there a limit on the number of claims that can be raised?

No, a genuine claim can be raised unlimited times. However, this would be the rarest of the rare case. In fact, to get advantage of No Claim Bonus, avoid raising claims for minor damages.

Why is it a good idea to avoid claims for minor damages?

Car insurance should be used as a backup financial option for major claims and minor claims should be paid from the pocket. This is because if you have a Comprehensive car insurance policy that covers the “Own Damage” component of the policy, you will be liable to get a discount called No Claim Bonus. You can get a flat discount of 50% when you do not raise any claims for 5 consecutive policy years. Hence, it is a good idea to avoid raising a claim for minor damages.

I recently got the paint of my car changed from white to blue. Now the car suffered damage, can I still claim for the damages?

It is necessary that you inform your car insurance company after making heavy aesthetic changes to the car. This is because the vehicle will be inspected for damages and the details will be verified. These details should match with the ones mentioned on the car insurance policy. There are high chances that the claim will be rejected if you do not inform the insurance company about the paint job.

Is it okay if I get my car repaired first and then raise a claim for damages?

No, your claim will be rejected if you get the car repaired without informing the insurance company about the damages suffered. This is because the insurer will arrange for an inspection. The estimator will assess the extent of damage suffered by the car. You should always repair the car after getting a green signal from your car insurance company.

Why should you look beyond the Claim Settlement Ratio in car insurance?

An insurer with a high or low Claim Settlement Ratio (CSR) may not always remain at the same rate in the future. While you need to factor in the CSR of an insurer, it should not be the only parameter while purchasing car insurance. The insurer’s services, hassle-free purchases, the Insured Declared Value (IDV) of the vehicle, discounts, stress-free claims, and brand reputation are also some of the factors that you should consider while purchasing car insurance.