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How Many Claims are Allowed in Car Insurance Policy in India?

  • Author :
  • TATA AIG Team
  • Published on :
  • 27/10/2022

Car insurance is perhaps the most important document in your vehicle because it is the first thing you turn to when you end up in a road accident. As per the Motor Vehicles Act, every car owner must have third-party four-wheeler insurance to pay for damages to a third-party vehicle and person. However, with comprehensive car insurance, an individual can also use their coverage to pay for damages to their own vehicle and person.

While this seems like a straightforward transaction at its face value, there are always certain pertinent questions about four-wheeler insurance that confuse policyholders. And one common question that insurance holders struggle with is: how many times I can claim car insurance?

How Many Times Car Insurance Can Be Claimed?

As a rule of thumb, there is no limit to how many times car insurance can be claimed in a year. There is no car insurance claim limit if your vehicle has been incurring frequent damages owing to accidents and other unfortunate events. However, if many car insurance claim charges have been made in a year, the insurance company may add a clause with their car insurance claim limit at the time of policy renewal. It is, therefore, advised to carefully read the policy documents at the time of renewal.

Now that we have an answer to “how many times I can claim car insurance?” Let's understand the implications of making multiple claims on your four-wheeler insurance.

How Do Multiple Car Insurance Claim Charges Affect Motor Insurance?

Although car insurance claim rules don’t indicate any limitation to filing claims, policyholders still need to be mindful of how many claims can be made during a year. Here are some important reasons why insurance holders need to think before making claims:

  • The No Claim Bonus (NCB)

The NCB is a discount offered on car insurance premiums if the vehicle owner files no claims during the policy term. Considering this, the number of claims you make each year directly impacts your NCB. With each consecutive claim-free year, the percentage of discounts on premiums increases. Insurance companies may even give as much as a 50% discount to policyholders if no claim is made for five consecutive years. And so, before you make a claim, check whether the repair costs exceed the NCB, so you don’t lose out on its benefits.

  • Increased Premiums Payable

If you make repeated claims to your car insurance policy, it is very likely that your insurance provider will increase your premium amount at the time of policy renewal. This is because multiple claims mean that the insurance seeker poses a higher threat to the insurance company. And so, to protect their interest while also promising a cover, the insurance provider will charge a higher premium.

  • Limit for Zero Depreciation Cover

If you have strengthened your basic car insurance with a zero-depreciation cover, the insurance provider will exclude the depreciation rate at the time of claim settlement. However, insurance companies usually include a limit to the number of claims that can be made during a year for insurance with a zero-depreciation add-on. It is therefore advised that insurance holders carefully read the policy documents, so they are not unpleasantly surprised in trying times.

  • Deductibles

Ideally, it is prudent to refrain from filing a claim if the cost to repair the damages is slightly lower or higher than the deductibles mentioned in the four-wheeler insurance. This is because even when you file a claim, the compensation will be inadequate, owing to the deductible component in the policy document.

Considering the aforementioned, several insurance providers would be sceptical about raising a claim. This is because it can influence their no-claim bonus, the history of the claim, and even the premium payable at the time of policy renewal. To solve this dilemma, let’s understand when an insurance holder should raise a claim.

Deciding Factors to Raise a Car Insurance Claim

To help you make an informed decision about raising a claim against your four-wheeler insurance policy, here are two crucial factors you must consider:

  • Ensure that the repair amount is higher than that of the deductibles

Deductibles refer to the amount that the insurance holder is liable to pay before the insurance company can start to make payments. In simpler terms, your insurance provider is liable to clear your claim only when the claim amount incurred is higher than the deductibles. If the charges for repairs are lower than the deductible, no amount is paid to the policyholder as the insurance company is only liable for the amount that exceeds deductibles.

  • Check if the NCB is below the cost of repairs

Typically, the NCB starts with a 20% discount on the premium amount for the first claim-free period and has the potential to go up to 50% for a policy. The NCB, therefore, helps you save a lot of money in the longer run. However, when an insured member makes even a single claim, this discount returns to zero. And so, it is prudent to pay for small repairs from our own pocket instead of raising a claim. If the NCB is lower than the cost of repairing the damages, then making a claim would offer you hardly any gains.

How to File a Car Insurance Claim?

Insurance providers are constantly enhancing convenience by enabling a seamless claim settlement process. The claim settlement process for Tata AIG is hassle-free and can be done online:

  1. Visit the claim support page and fill in the necessary information and you will then receive a self-inspection form.
  2. Fill out the details about the damages incurred, and a surveyor will inspect the vehicle
  3. Choose the mode of repairs
  4. Submit the necessary documents such as policy documents, address proof, ID proof, etc.
  5. Once the request is approved, the claim is settled

When you purchase the policy, carefully read the car insurance claim rules for a seamless claim settlement process. It is crucial to know about details such as the car insurance claim time limit, what you can file a claim for, etc., so your claim is not rejected. Typically, in the event of an accident, the car insurance claim time limit is between 24 to 48 hours of the accident.

The Bottom Line

Although there are no limitations to how many claims one can file against their four-wheeler insurance, it is advised to carefully analyse the claim amount. Carefully calculate to see if raising a claim will benefit you in the long run, and only then should you file a claim.

Finally, make sure that you understand the clauses and the inclusions and exclusions to the policy to avoid unpleasant surprises at the time of raising a claim. To make an informed insurance purchase, compare car insurance policies to find a reasonable and suitable cover.

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Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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