Motor Insurance is Valid Across India
The Motor Vehicles Act, 1988, governs motor insurance policies throughout India. It applies to third-party insurance and comprehensive car insurance. Therefore, even if you're in another state, you can file for claims.
Third-party liabilities will be covered nationwide. Similarly, own-damage claims will also be valid under the comprehensive insurance, along with the add-on coverages. The insurance doesn't restrict filing claims geographically in India.
Read More: How to File a Car Insurance Claim
If You Only Have Third Party Insurance
Since third-party insurance is mandatory, most people only purchase this type of car insurance. This insurance policy will only cover expenses to the third-party. Your injuries and your own vehicle damage will not be covered.
If the legal cases are filed against you, it will also be important to appear before the local Motor Accident Claims Tribunal (MACT). However, your insurer will assist you with all legal matters. Since the accident happened outside your state or city, the case will also be handled in that jurisdiction only.
FIR and Legal Formalities
If you are to raise a claim for car insurance online, you will have to file an FIR immediately, no matter where you are. This will apply in cases of third-party damage, disputes, major vehicle damage, or injury or death.
You should visit the nearest police station and file the claim immediately where the accident occurred. For any other minor damage, the insurance company will require you to submit a self-declaration. However, make sure to review the policy terms thoroughly. You can download the car insurance copy online to review terms and conditions.
Read More: Step-by-Step Guide to Claiming Car Insurance
In Case of Comprehensive Coverage
Having comprehensive car insurance coverage is feasible given its benefits. The comprehensive insurance will offer coverage for your own vehicle and third-party. It provides coverage against various scenarios, including theft, fire, and natural disasters.
Before filing the claim for repairs, you should also check the pan-India garage network. Since you're in a different city, it plays a key role in managing the claims easily, even outside your home city. Furthermore, it also helps to minimise the repair costs.
The Impact on No Claim Bonus
For every claim-free year, you accumulate a No Claim Bonus on your car insurance. This becomes essential during renewal as you get discounts on premiums. However, if there is an accident in another state, you will file a claim, which means your No Claim Bonus resets to zero.
There are ways through which you can avoid losing on your No Claim Bonus. If the accident wasn't your fault, you should consider a full recovery from the third party. By avoiding NCB, you should be able to retain the benefits and receive premium discounts.
Read More: Maximise Your No Claim Bonus in Car Insurance
What to Do After the Accident?
Now that you know how your motor insurance company helps you in case of accidents outside the city, you should also take immediate action. Taking prompt actions and completing actions within 24 hours should be of great help.
Here are all the key things you must do after the accident to file for car insurance claims:
1. File the FIR
You must file the First Information Report immediately after the accident. Be very articulate while filing the FIR, because these will be used to file claims with the insurance company. The police will also use this information to file the spot report. For both police and insurance companies, you will have to submit spot photos.
2. Survey the Damaged Car
Click all the photos of damage and send them to the insurance company. If you have a witness who can testify, ask for their support too. Insurance companies usually conduct an in-house survey to assess the damage and the claim settlement amount. During the survey, make sure to fill out the form properly. Furthermore, you should also show the original documents to the insurer.
3. Settlement Offer
Since you've already notified the insurer, connect with them for a settlement offer. After the accident, it can be a lengthy process. The negotiations with the insurance company can be one of the most daunting tasks.
In case there is a third-party involved, ensure that you inform the insurance company about the same. Do not opt for out-of-the-court settlement without the involvement of the police or insurance company for such scenarios as it can cause issues and may be considered to be illegal.
What happens if the insurance company offers a settlement?
If the insurance company is offering a settlement immediately, make sure that you review the offer. Additionally, if you feel you need legal help, you can get it. Ensure the documents are read carefully to provide comprehensive help. You should thoroughly check the extent of the damage and losses, as well as what's being offered.
In case another party is involved, what should you do?
If there is another party involved, you can connect with a legal expert to understand how to pursue the claims against the other party. However, to obtain legal assistance, make sure to act promptly. This is mostly because legal actions have a timeline. The insurer will look into the third-party claims process. If the other party files for a case at the MACT, the insurance company will assist you with all the legal procedures.
Expert Note
This information is based on standard motor insurance guidelines issued by the Insurance Regulatory and Development Authority of India (IRDAI) and commonly followed industry practices. Policy coverage and conditions may vary by insurer.
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