Owning a vehicle is no longer a ‘neighbor’s envy, owner’s pride’ thing anymore in India. It has become a basic necessity in life.
However, your vehicle could meet with an accident at any point of time. To cover your risk, you need to ensure you have taken car insurance, also called auto insurance, motor insurance or vehicle insurance.
Before you can use that insurance to get your monetary standing back as it was before the accident, there are a few dos and don’ts you need to be aware of should you be involved in an accident. Here is a small primer on what to do after a car accident in order to claim insurance.
Checklist on what to do after a car accident
Immediately after an accident, emotions and anger take control of you. In those trying times, you need to keep calm and do the following things to the best of your abilities.
1. Check for injuries first – this will help you decide what to do next. Calling the ambulance, police, your lawyer or friends can be done if you know what you need at the time of the accident.
2. Note the vehicle details of the other car – license plates, make and model, to name a few.
3. Exchange the insurance details of the other party if you think you might claim through their insurance. Even otherwise, this might help.
4. Details of all the witnesses who saw the accident is very much required. Get their names, addresses and contact numbers. At a later point of time, these witnesses can come handy to decide who and how the accident was caused.
5. Call the police if feasible. They or someone else will summon the ambulance if that is required. If calling is not feasible, you will need to file a FIR – First Hand Information report. This is mandatory is a third party liability claim needs to be progressed. You must also file a FIR if you think it is the other persons fault and the damages are huge.
With a FIR in place, the other party cannot challenge some details of the accident which have already been recorded by the police.
6. Record all the details of the accident scene. A meticulous observation will help you when you file the motor or car insurance claim.
7. Taking pictures might help in the claim procedure. Granted no one carries cameras around in their vehicles, but try your mobile phones or someone else’s. I would be surprised if you don’t get any !
8. Call the insurance company and inform them of the accident. Do this only if you are sure that the matter is going to go to them either by the affected party or by yourself. The affected party will try to claim through your insurance if he thinks the fault was yours and you might go to them if the expenses are gong to leave you high and dry. So for example, I would not call my insurance company if the damage is only to my car and the repairs will cost say, less than Rs 5,000/-.
Note that you must keep the insurance company help line numbers with you all the time. This is usually on the policy document or on the vehicle insurance booklet that was delivered along with the policy. Keep both in the vehicle.
Car Insurance Claim – What not to do ?
There are a number of things you might want to stay clear of.
1. Firstly, do not make any statements to the police or the insurance company if you think you are doubtful of what you are speaking. Your mind is racing and you are shocked to be involved in the car accident so anything you say might be recorded and your car insurance claim can be denied if those statements can be used against you.
Statements can be made and recorded after you have regained your composure.
2. Secondly, do not accept outright it is your mistake if you have the slightest doubt about it.
3. Thirdly, please do not get into a mortal combat, verbal or otherwise, with the other party. If you lose your temper, the claim process will be more convoluted.
File your claim with your car insurance company
Before you file your claim, it is best of know how motor or car insurance claim works. Vehicle insurance is meant to protect losses that may arise due to traffic accidents and against liability caused in the accident.
There are two types of vehicle insurance – comprehensive and third party.
Comprehensive car insurance covers any losses due to damage or theft to your vehicle and death of anyone in the car during the accident. Third party car insurance only covers the damage done by your vehicle to the other vehicle or property. It does not cover accidents, theft or damage to your vehicle.
You also need to be aware of the fact that when you file a claim with your motor insurance company, the claim will not cover any wear and tear of the vehicle or it’s depreciated value. The claim you receive is on actual repairs to the vehicle subject to a maximum of what the IDV (Insured Declared Value) is on your policy document.
Having said that, you will need to call your insurance company within a stipulated amount of time to file the claim – check in your policy document what that time-line is.
The motor insurance company will have a preferred a garage where you might need to tow the vehicle for estimation of damage and cost of repairs.
The insurance company will ask for documents to be submitted, the list of which is below :
- Copy of the insurance policy
- First Information Report (FIR)
- Claim form filled up
- Vehicle Registration copy
- Driving License Copy
- Original Estimate of repairs
- Medical receipts
- Original police certified no-trace report (in case of theft only)
- RTO transfer papers duly signed (in case of theft only)
I will do a separate post on the claim process, for now, can you suggest what other steps one must take in case one is involved in a car accident to avoid any surprises when the claim is filed ?
@TheWealthwisher,
Very very informative article, quite comprehensive.
Did not know quite a few things.
Thanks for the feeedback.
Although your article is well written and lays out the steps correctly, I am afraid it is far from reality in India.
An SUV had rammed the rear of my car while I was waiting at a traffic signal. I followed the exact steps and even got an FIR filed. But when it came to claiming insurance from the other car owner’s insurance company, it was a complete nightmare.
1. At the accident scene, I called 100 to ask for help. When the operator realized that no one was critically injured (I just had shoulder and neck pain), he yelled at me for calling unnecessarily.
2. I dragged the other car owner to the nearest police station. The police constable discouraged me from going after insurance claims. He said I should claim ‘some amount’ right at the accident scene. I wish I had listened to him.
3. The Tata auto body shop was dead-against taking my car into the workshop for ‘third-party claims’. The manager insisted that I don’t understand the procedure, and that I ought to always claim it through my own insurance company. When I tried to explain the difference between Comprehensive and Liability (third-party) policies, he got frustrated and asked me to take my car someplace else.
4. My insurance (Bajaj Alliance) phone operator gladly accepted the claim in spite of me telling her repeatedly that it was not my fault. As a result of using my own insurance, I lost my no-claim bonus for next year.
5. When I called the other insurance company (United India Assurance), they gave me ‘friendly advice’ that I should first file a case with Motor Vehicles Dispute Tribunal, which would take years to process.
6. My car was in the auto body shop for nearly 2 months, and was subjected to additional scratches and dents. My net out of pocket expenses (deductible + uncovered expenses) came to 18,000.
7. When I called the other car owner to claim this amount, he said he had already given me his insurance information and stopped answering my calls.
Sorry to say this, but reality in India doesn’t seem to require the checklist you’ve meticulously laid out. It may not be of much use until policemen, auto body shops and insurance companies know how to process those details properly.
What you recite is happens rampantly in India.
I have read somewhere that there are 14 lakh court cases pending in India for motor claims – so owners like you took the other party to court when they failed to pay up.
Though the system exists, it does not work smoothly.
The fact that you have comprehensive insurance on your car is the fall back option.
Sometime in 2005, I was in Arizona and driving a car when a Mexican hit me from behind. Arizona being next to Mexico, there are many illegal immigrants. Being illegal, the guy did not have a license, leave alone an insurance so I used mine to repair my car.
So the point is, we need to use our own insurance, lose the no claim bonus and get the damages repaired.Take the other chap to court if he does not pay up.
The process is far from smooth, as you rightly say.
Totally agree with you SS. These steps are viable in some perfect world not in India where the person who is at fault has the courage to say “it was your fault” and fight.
I don’t agree, you will get ample people who are on the right side of the law.
Probably, they don’t get into accidents.
Same is my situation , i Feel police and Insurance company is there to make matter more worst.
Very nice article. Kudos.
Just a few thoughts from my end. I find the entire Car Insurance concept in India STRUCTURALLY flawed. It does not encourage responsive driving, hence promoting more accidents. In our western counterparts, the biggest chunk of claims are settled against the third party insurance cover of the party who is in fault in case of an accident. So if A & B are in an accident, caused by A’s fault, the entire repair cost and other accident damages are paid out of A’s insurance policy and B doesn’t have to suffer and financial issues. What A gets further hit is – the next years renewal quote goes up the roof, as A is now considered as a risky driver. At times this insurance quote is so high, that A can no longer afford a car(insurance more expensive than the cost of the car). And yes this is true !
In India, if you are in accident, the third party insurance claim is used only if you damage some one’s property (not a car) or if some is is critically injured or dead. I might be wrong, hence please feel free to correct me ! Hence, the cost of Third Party Insurance premiums is so low ! Hence, even if a person is not at fault, he has to suffer the repair cost, or loosing this No Claim Bonus of his Comprehensive Insurance !
Regards
BanyanFA
Yeah that is right, I think in the western countries the law is so strong that it has streamlined the claims. In India, even if A is at fault, he will not pay up.
The irony of the situation is that in hit and run cases, witnesses are bought over and the cases get dragged for years. Meanwhile, B pays from his pocket/insurance to repair the damage to his car. And his next year’s insurance premium goes up.
I think the system is FLAWED to such an extent that it su**s !
While the article is quite comprehensive and knowledgeable, most of the suggestions are not practical in my view. I’d suggest to do the following: –
In case of any serious injury rush to the hospital yourself if possible or take someone’s help. There is no point calling and waiting for ambulance.
In case of no injury, take pictures of the accident scene including your damaged vehicle. Note the details of other vehicle and leave the site ASAP. There is no point in arguing or fighting with other person for long. If other person doesn’t accept his/her fault in first argument, chances of that happening at a later time is very slim.
Call your insurance company and inform about the accident. Later if they insist go and lodge FIR but be prepared mentally to pay up and waste a few days running around.
The suggestions are provided to you which one should follow. You have to file the FIR within some period of time and not later.
In case of major accidents, one does not even need to move the car till the insurance company arrives.
Practicality of things to do cannot be accepted because that is what most of the people have been doing, even if it means they were going against the rule.
Why do you need to leave the site ASAP – you cannot do that always, can you ?
Sure, going to the police means a lot of hassles but that is the price we pay for making sure the other party pays up.
Staying at the site is going to give you nothing but tension. Has going to police ever given any solution? Police just try to take advantage of the situation.
I’d love to hear readers positive experience, if any. I have never heard other party paying up for the damage including my personal experience. Even if someone has paid it’d be miniscule amount of the total expense. I don’t think that amount is worth all the hassle.
In my opinion get as much money as possible from your insurance company and pay for the rest and just sweep the whole incident under the carpet.
Yeah, that is the easier way out of the mess.
But sometimes going to the police is mandatory – in case of a major accident. What I am trying to say is gong away cannot be a generic solution but a more viable one for small accidents.
For major ones where the other person is at task, I would take the trouble of a court case to make things right – sometimes in life, the shortest way is not always the right and the right ways are often the most painful.
Its a choice we need to make for ourselves.
Agree with your points in case of any major accident. I’d probably do the same but looking at the news it is disappointing that every brat has gotten away!
Good discussion, though i have never involved in any major accidents these points will definitely help.
I had taken a insurance claim from my insurance company when a DTC bus hit my car at a faulty red light crossing. I had to pay 6000 from my pocket. This happened 5 months back. Yesterday, another car hit my car’s bumper in parking. Security guys informed me about this. I went to check, found my bumper having a big dent. I can get it repaired from outside also, which would cost me something say 2000/-. I want to know if I take insurance claim, will it affect my next years NCB? I feel that it should not affect my next year’s premium because I have already lost my NCB for next years premium because both accidents happened in the same insurance year
My friend was traveling in a bus and met accident, means she bus collide to another truck. And since she was inside the car as a passenger, she make no escape and faced a serious accident. Suffered fracture in Clavicle bone ( Left Collar bone) , fracture on bone near the left eye , and the bone near the left jaw of teeth. She was only daughter of her family and was source of income.
Right now we friends had admitted her in a good hospital and treatment is on, and still new injuries may come out.
Dear Experts, please provide me all necessary information,
*how she could claim amount of her Medical treatment?
* how fast she/her family can claim ?
* As money is very urgently required for her, what were the other procedure of claims.
Please explain.
Experts comments may help a helpless girl..
Hi,
my brother died in road accident . while he was on starting his bike a car came from behind and hit him with full speed and in negligense manner.
car has full insurance(registered in 2015/Jan)(I dont have idea what is full and third party insurance) and all other documents(RC,driving license other docs are proper).
My brother salary components are as follows
gross salary is 35000/month(4,20,000/PA) and
net salary is 30000/month(3,60,000/PA)
bonus whis is around 1,50,000/PA(is this component considered)
He is a full time employee working with a company for the last 5 years.
he has five dependents
mother(no income),father(no income),wife(govarnament employee earns 30000/PM), 2 children(no income)
Whether wife can be considered as dependent here as she is working in govt organization
Can you please tell us how much insurance we can get for this case?