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Car Insurance Claim is a Tricky Business
The number of car has crossed several lakhs and India roads are spilling with vehicles of all kinds. Most of this is attributed to rise in car ownership in India. A year ago car ownership was estimated to be eight persons out of 1000. But this number has now increased.
With the increase in number, there has also been an increase in number of insurance claims. The catch in the insurance agreement signed by the insured and the insurer is the claim amount. Many are not aware about the details and procedures involved in insurance claim. The compensation amount will be paid only based on the report of the surveyor. For damages less than Rs 20,000, insurance companies hire their own assessor. But according to Insurance Act, all claims above Rs 20,000 have to be surveyed by an independent authority. This helps avoid bias against either parties – insurer and insured. It is also important for the surveyor or assessor to submit his/her report within 30 days of the surveying the damage.
As the cost of accessories and parts are going up severely, it would be paltry to involve an independent surveyor. However, in such cases, the insured has a right to ask for an independent surveyor.
Some private insurance companies are involving their own in-house surveyors to provide a report on car damages. This works fine even though it is a violation of the law. Later, if the case gets into legal tangle, they can get an independent assessor survey the damages and take note of his report. This helps the insurance companies’ double check the value of insurance claims. Further, involving an independent assessor proves costly for the insurance companies. They will have to incur expenditure worth several thousands (based on the number of cases) everyday.
Hence private insurance companies go for in-house surveyors. These surveyors are given a free hand to asses the quantum of damages, and the validity of the claim. The report submitted is analysed and suitable compensation is paid. The report is then submitted to the company, who is the ultimate decision makers.
In most small cases, they pay the compensation as per the report. However, it is the larger claims that become a bone of contention between the insured and the insurer.
Several cases of underestimation are pending before consumer courts and judicial courts. Many petitions have also complained that assessors reach the place of accident too late to asses the quantum of damages. If the insurer feels the need for a police report on the accident then, it is made use of to settle the compensation amount. In case the company feels that some facts are missing and the claim seems to be a false alarm, the insurer calls the independent surveyor.
Settling insurance claims is a lengthy process and requires a lot of perseverance on the part of the insured to settle the claim. The general insurance companies go through several layer of processing before the final amount reaches you. Hence, it is best to keep all your correspondence, phone conservations and meeting documented. This will help build a strong case in your favour.
