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How many claims can you file under a car insurance policy?

Accidents on the road are sudden and can occur at any time. When you have insurance for your car, you are assured by the fact that your insurance policy will cover the cost of damages to your car in the event of an accident. But how many claims can you file under a car insurance policy?

You can make as many claims as you want within your policy tenure. You have the option of choosing either a short-term or long-term plan for your insurance on the car. A short-term policy generally has validity for a year, and a long-term plan is valid for up to three years and you can make as many claims as your sum assured allows within the policy tenure. However, note that you will lose your No Claims Bonus (NCB) once you do make a claim.

What is No Claims Bonus?

When you complete your insurance tenure with no claims, you receive a No Claims Bonus. This is a fixed discount that is applied to your insurance premium upon renewal. This discount increases every year and can go up to 50%.

However, when you do make a claim, you stand to lose this bonus and will have to pay the full insurance premium upon renewal. That’s why it is recommended to survey the situation and choose wisely when you make a claim.

So when should you make a claim and when should you skip it? There’s no hard and fast rule, but if the cost of repair is small, it is advisable to skip it. Here are some instances when you can consider skipping a claim:

- When the repair expenses are lower than your No Claims Bonus

- When the repair expenses are lower than the deductible amount in your policy

In such instances, it is advisable to pay for the expenses from your pocket - it will save you more money. When the damage is done to your car is extensive and would cost a hefty sum, you can consider filing a claim.

How does the claims process work?

Step 1: Register your claim with your insurance provider

Step 2: Upon registration, you will receive a claim registration number

Step 3: Once you receive your claim number, you can take your car to a network garage

Step 4: Submit all the required documents such as the claim form, a copy of your driver’s license, registration certificate (RC), and proof of insurance

Step 5: A surveyor then examines your car and reports the damages

Step 6: Once all these documents are in order and verified, your claim is processed

Step 5: You receive your claim settlement and repair of the vehicle is carried out

The purpose of taking insurance on your car is to protect yourself from potential financial liability in the case of an accident or theft of your vehicle. You can make as many claims as you want within your policy tenure, but ensure that you only make claims when the expenses are on the higher side, so as to not lose your No Claims Bonus over a small amount.

To know more about car insurance and how to make a claim, click here.

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