Updated on 10-04-2025
Car insurance is a promise made by an insurance company to the customer. The promise entails
that in case of damage to the car following an accident, the company will pay for the damages.
However, having car insurance is not enough. If your vehicle meets with an accident, you must
be aware of the time limit to file an insurance claim.
The time limit for a car insurance claim varies according to the insurer and the type of claim
filed. For cashless claims, you do not have to pay upfront for any repairs to the car. Your insurance
company will deal with the repair costs. You need to pay for the repairs while filing a
reimbursement claim. The insurance company executes the reimbursement later on.
Is There a Time Limit for Insurance Claim Settlements?
Yes. Here is the time limit to file an insurance claim:
- Ideally, you should file the claim within 24 hours of damage. Fresh damages help the
surveyor files a correct inspection report. Any delay in filing a claim makes it difficult to
contact the other party involved in the accident.
- Some insurers have a time frame of 48 to 72 hours to file the claim.
- In extreme circumstances, you should file the claim within seven days of the mishap.
The insurance company sets a time limit for car insurance plan claims to ensure the reliability of their underwriting process. Failure to justify the reasons for the delay in filing the claim may lead to
non-acceptance of your claim.
Two Ways to Process Car Insurance Claims
When it comes to processing car insurance claims, policyholders typically have two options:
Cashless Claim Settlement Process
In a cashless claim, the insurance company directly settles the repair bills with network garages, minimising out-of-pocket expenses for the policyholder. To avail of this service:
- Inform the Insurer: Notify your insurance provider immediately after the incident.
- Visit a Network Garage: Take your vehicle to an authorised network garage of your insurer.
- Assessment: A surveyor appointed by the insurance company will assess the damage.
- Approval and Repair: Upon approval, the garage will proceed with repairs, and the insurer will settle the costs directly with the garage.
This method ensures a hassle-free experience, as the insurance provider handles payments directly, and the policyholder is only responsible for deductibles or non-covered expenses.
Reimbursement Claim Settlement Process
In this method, the policyholder repairs the vehicle at a non-network garage, paying money from his pocket. The reimbursement process is as follows:
- Inform the Insurer: Report the incident to your insurance company promptly.
- Repair the Vehicle: Get your vehicle repaired at a garage of your choice.
- Collect Documents: Gather all necessary documents, including repair bills, payment receipts, and any other required paperwork.
- Submit Claim: File a claim with your insurer, providing all supporting documents.
- Assessment and Reimbursement: The insurer will assess the claim and reimburse the approved amount to your registered bank account.
While this method offers flexibility in choosing repair services, it requires the policyholder to manage payments initially and await reimbursement.
How to Avoid Delays in Receiving My Claim Settlement?
To ensure a timely claim settlement, consider the following steps:
- Immediate Notification: Inform your insurer about the incident as soon as possible.
- Accurate Information: Provide complete and correct details regarding the incident.
- Timely Documentation: Submit all required documents promptly, including claim forms, repair bills, and any other necessary paperwork.
- Regular Follow-ups: Stay in touch with your insurer to monitor the progress of your claim.
- Understand Policy Terms: Familiarise yourself with your policy's terms and conditions to prevent misunderstandings.
By adhering to these practices, you can facilitate a smoother and quicker claim settlement process.
Can a Delay in Filing Claims Lead to Claim Rejection?
Yes, delaying the filing of a claim can result in rejection. Insurance policies typically specify a timeframe within which claims must be reported. Failing to adhere to these timelines can give insurers valid grounds to deny the claim. Timely reporting allows for proper investigation and preserves crucial evidence, ensuring compliance with policy terms. To avoid potential rejection, it's imperative to file claims promptly as per your policy's requirements.
How Long Does It Take for the Insurance Company to Pay Out the Total Loss Amount?
The time taken by an insurance company to pay out a total loss claim varies based on several factors, including the complexity of the case and the completeness of the submitted documents. Generally, insurers aim to settle such claims within 7 to 10 days after receiving all necessary documentation. However, if there are complications or additional investigations required, the process may take longer. Maintaining open communication with your insurer and promptly providing any requested information can help expedite the settlement process.
Conclusion
Make the claim as soon as somebody hits your car. Don’t forget to carry a copy of the current
and previous year’s policy, driving license, car registration certificate, claim form, and estimate
from the workshop while filing the insurance claim. If you are buying car insurance online, chat with the customer support of the insurance provider and clear any doubts that you have about the process and intricacies of the claim process.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.