When NOT To Claim That Car Insurance

By BankBazaar | September 13, 2016

When Not To Claim That Car Insurance

Indian roads, let’s say, aren’t always in the best of conditions and no matter how carefully you drive, someone might bump right into your car. That’s not the worst part! Some people don’t even accept when it’s their fault and we’re sure that makes your blood boil! The impact from this will not only change the shape of your car but will also change your monthly budget. In case you don’t want that to happen, you have another option—claiming your Car Insurance.

You might think that claiming your Car Insurance is always the right thing to do. That’s what it’s there for, right? So what’s the fuss about? We’ll tell you. There are a number of scenarios where claiming insurance is not the right thing to do. It just leads to unnecessary paperwork and could ultimately prove to be a waste of time.  Not claiming your insurance might even save you a bit of money.

Additional Reading: What To Do If You Lose Your RC Book / Smart Card

Here’s when you shouldn’t claim your Car Insurance:

  • When the person responsible can pay

Usually, after an accident, people tend to blame each other and try their best to get the other one to pay for the damages. Although we don’t want you to start fighting in the middle of the road, we just want you to make an effort and ask the responsible person to pay for the damages. That makes sense only if it was entirely their fault. If you were equally responsible for causing the accident, then don’t try to make the other party pay. If they actually had earphones on and bumped into you or if they jumped the signal or something like that, go ahead and ask them to pay. They were responsible for the accident, after all.

  • When the damages are minor

We know that when it comes to your precious four-wheeler, no damage looks too small. But we advise that you don’t claim your Car Insurance, in this case. If your total repair cost is less than the NCB (No Claim Bonus), it might prove to be a bad decision. Don’t know what NCB is? Let’s break it down for you. If you don’t claim your Car Insurance in the previous year, you get a discount on your next year’s premium. That, mate, is your NCB. So, throwing your NCB up for some small repair charges doesn’t really make sense, does it?

Please note that if your car runs on CNG or LPG, you need to be a little more careful because such vehicles generally have higher premium rates as compared to the others.

  • When you can make a third party pay

Although this is the least used option, you could opt for it when you really need to. If the NCB involved is too big an amount, it’s better that you don’t approach your car insurer. Yes! Don’t go running to claim your Car Insurance. Instead, consider the option of making a third-party insurance claim. The third-party here refers to the other person involved in the accident. If you can get them to claim that the accident wasn’t your fault, you have the option of claiming the third-party insurance. It might sound easy, but it is pretty hard to do. First of all, it’s can be difficult to get the other party to claim that the accident was completely their fault! Second of all, you need to approach the Motor Accident Claims Tribunal. Why? Because motor insurance claims don’t fall under the authority of the Civil Courts. You, basically need to file an FIR at the local police station and get a charge sheet for the same. If it’s proven that you weren’t at fault and have all the original receipts of payments towards the damages, your third-party insurance claim might get approved! This complicated process can, however, let you avail of third-party insurance claims without giving up all the NCB benefits. Now that’s worth fighting for, isn’t it?

If you ever find yourself stuck in the middle of the road, arguing with the other person who bumped their vehicle into your car, keep these points in mind! Remember that you don’t always have to claim Car Insurance.

By the way, if you’ve read everything about claiming your Car Insurance and still aren’t covered, check this out.

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Category: Car Insurance
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