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Claim Settlement Process for Road Accident

To ensure a smooth and hassle-free accident claim settlement process, please refer to this brief guide of the claim process for road accident in India.

  • 19 Jan 2023
  • 2 min read
  • 1740 views

While financial stress will be present in case of any type of loss, the associated risks and mental stress in case of an accident are even higher, especially if a third party is involved. Besides dealing with own damage and loss, third-party liabilities can wreak havoc on your finances. To make matters worse, a delay in reporting the damage to the insurer can lead to a claim refusal. An insurer with a good claim settlement ratio will extend all sorts of support to you, provided you are honest and do the needful.

To ensure a smooth and hassle-free accident claim settlement process, the Ministry of Road Transport and Highways (MoRTH) has laid down a set of guidelines for all insurance companies.

  • On the intimation of a road accident, the insurance company must assign an investigating police officer to the case.
  • The investigating officer must inspect the accident site, click photographs of the site and the damaged vehicle, and prepare a site plan.
  • The investigating police officer must send all the collected details to the claim tribunal within 48 hours of the accident.
  • If there is a third-party liability—be it bodily injury/loss or a loss to the property, the third party, that is the victim of the road accident, should be informed of their rights. They should also be provided with a flowchart elaborating on the settlement scheme. These details have to be forwarded to their legal representatives as well. This intimation has to be done within 10 days of the accident.
  • After that, the investigating officer must submit an interim accident report to the claim tribunal and the submission has to be done within 50 days of the accident.
  • Post the submission of the interim accident report, the investigating officer must submit a criminal investigation report to the concerned criminal court within 60 days.
  • The verification of all the documents and information has to be included in the Detailed Accident Report (DAR) and the same must be submitted to the claim tribunal within 90 days of the accident.
  • Once the DAR is submitted to the claim tribunal, the same has to be forwarded to the insurance company as well.
  • The insurance company will verify the details at its end and file a report.

    Depending on the available information and policy coverage, the insurance company will either accept or reject your road accident claim.

While the road accident claim settlement process looks tedious, it is fairly easy and simple. If you were not drunk driving or driving without a licence or insurance at the time of the accident, the claim will be settled smoothly. Just make sure you choose an insurer with a good car insurance claim settlement ratio or bike insurance claim settlement ratio. To know the claim settlement ratio of your preferred insurer, check the IRDA Claim Settlement Ratio 2022 report.

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