When should you not file a car insurance claim


21 Jul 2023

Read about When should you not file a car insurance claim? . For more information, check out the car insurance policy from Kotak General Insurance.

There is no rule about when you should and should not file a Car Insurance Claim. However, claiming at every minor inconvenience can ruin your no-claim bonus (NCB), which you can use as it accrued over time.

Things to consider before claiming your Car Insurance

• The amount of loss and its effect on NCB, deductibles, and future premiums are crucial factors that should be considered to judge whether you should file a claim.

• Add the deductibles to be paid with the NCB that you can accrue to get the overall measure of your loss. If this loss turns out to be more than the actual claim amount, you can claim without hesitation.

• It is wise to make car insurance claims for significant losses, especially those not below Rs.5,000. Claiming a minor loss may cause a lot of losses in the long run.

• In case there is the involvement of a third party in case of a massive accident or a minor inconvenience, you may claim your car insurance under the third-party liabilities. Although it is a little complicated and time-consuming, it is safe as the claim is not under your policy.

When is not the right time to claim Car Insurance?

1. Small claims:

If your car suffers a minor repair, it is best not to file a claim as it would affect your no-claim bonus, which could be higher than the actual claim amount.

2. Whenever your NCB is affected, do not make a claim:

The No Claim Bonus (NCB) is a kind of advantage that car owners get for not filing any car insurance claim in a policy year and is available as a discount on future premiums. You may assess your loss in the manner mentioned above and claim your car insurance policy accordingly. Calculate the increase in an accrued renewal premium to make the final decision. While calculating, remember that the NCB discount is applicable only for the 'Own Damage' portion of the total premium. The 'Liability' portion does not fall under this.

3. Factor in the amount of deductible:

When you file a car insurance claim, you must make a compulsory payment of a specific amount. This depends on the vehicle's make and is referred to as the compulsory deductible. If you claim car insurance, you will only get the balance except for the 'deductible' amount. Remember, they are also subject to depreciation.


Filing a claim for every minor dent or scratch makes no sense since it can harm the long-term benefits of having a Car Insurance policy since doing so might make you lose more money than you had imagined. Therefore, take measured steps only after considering all the factors in calculating the return and loss.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.