If you are a car owner, you would know that you must have at least a third-party car insurance as per the laws under Motor Vehicles Act. The insurance coverage helps you get financial protection against the losses you may incur when you get involved in a road accident or due to any other unsolicited incident.
However, in some cases, your car may get damaged beyond repair, i.e., you may suffer from total loss. What would you do in such unfortunate circumstances? Would your car insurance help you get compensation for the same? Can you raise a claim for non-repairable damages? Read on to know the answer.
Firstly, let us understand what is non-repairable damage?
As the name suggests, non-repairable damage is a condition where you suffer from total loss of your vehicle. It is a term that your car insurance company may use to denote a major damage. Typically, when the repair cost of the damaged vehicle is more than 75% of the IDV (Insured Declared Value) the insurance companies term it as non-repairable damage. The IDV of the vehicle is fixed on the basis of the manufacturer's listed selling price of the brand and model as the vehicle insured at the commencement of insurance/renewal and adjusted for depreciation. It is the maximum claim amount that the insurance companies agree to pay when the vehicle is beyond repair or is stolen.
Can you file a claim for non-repairable damages?
Yes, you can file a car insurance claim for non-repairable damages. However, there is one critical condition you must fulfil, i.e., you must have a comprehensive car insurance policy. A comprehensive insurance plan covers third-party liabilities and own damage insurance both. It helps you get compensation for damages to your vehicle caused due to accidents, natural calamities, fire and more.
Steps for filing a claim for non-repairable damages
If you find yourself in a situation where your car is damaged beyond repairs, you may feel overwhelmed while filing a claim. So, to ensure that you have a smooth claim filing experience, we have listed down a few important tips.
Inform the insurance company
As soon as your car gets damaged due to an accident, an object falling on the car or any other reason, you must immediately inform your car insurance provider about the damages suffered. In case of an accident, you must also file a police complaint at the nearest police station and get a copy of the FIR (First Information Report).
Gather the necessary documents
When you file a car insurance claim, you must submit certain documents such as FIR, copy of the car insurance policy documents, driving license, ID and residential proof, etc. Make sure that you check the documents required for filing a claim on the company’s website and keep them handy to avoid any delays in the settlement process and the last-minute hassles.
Provide evidence to underpin your claim
If your car gets damaged due to an accident, fire or natural calamity, make sure that you take a picture or a video of the damages as proof. You may need this later to support your claim. You can also try speaking to the onlookers at the accident site to get testimonials that you were not at fault for causing the accident. This will help you put up a strong case for yourself and get compensation for the non-repairable damages.
Follow the process correctly
All insurance companies have a specific process for filing a claim. Understand the process first and strictly adhere to it. For example, some insurance companies may call you to assess the nature of the damages and the current situation as soon as you inform them about your intention to file a claim. Other insurers may ask you to fill out a physical form and submit it along with necessary documents.
Always be honest about how your vehicle was damaged to get the best support from the car insurance company. But if you try to hide anything or provide false information, you risk your claim getting rejected.
A claim for non-repairable damage is a major claim and once you get the settlement, your policy will cease to exist. If you buy a new car, you must buy a new insurance policy to cover the vehicle.
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Disclaimer: The content provided is for education and informational purpose only, none of the information contained in our blog amounts to any form of opinion or advice. Please go through policy related documents carefully or consult an expert before making any insurance-related decisions.