How much time does a car insurance company take to settle a claim?

Know about the claim process and time taken by the car insurance company to do the claim settlements.
How much time does a car insurance company take to settle a claim?
3 mins
21 Mar 2023

The claim settlement process is one of the key factors one must consider while buying a car insurance policy. These policies act as a financial backup during emergencies. It ensures you do not have to worry about funds when you need them the most. Therefore, it is important to check if the claims process for receiving the compensation is hassle-free.

Is there a time limit for insurance claim settlements?

The time limit set for the claim settlement process by the IRDAI is within 30 days of raising the claim. Most insurance companies settle the claims within 10 days.

Read on to know everything about the claim settlement process. Know the different ways of raising a claim request and how long an insurance company take to settle the claim. You must also note that the insurance claim process varies from insurer to insurer.

Two ways to process car insurance claims

You can choose to raise your claim in either of the following ways:

Cashless claim settlement process

You can avail of the cashless facility at any of the network garages. Simply contact the insurer to raise the claim request. Then take your vehicle to the nearest network garage or request towing services to do the repair services. Thereon, your insurer will take care of the expenses. The insurance company will directly clear the bills with the network garages.

Reimbursement claim settlement process

If you choose to get your vehicle repaired at any of your preferred garages, you can then utilise this facility. You can contact the insurer through their website or toll-free number or SMS to raise a request. Fill out the claim form and submit the necessary documents stated on the policy document. After verifying the facts and documents, the insurance company will reimburse the expenses incurred up to the sum insured. You will receive the amount in your registered bank account.

How to avoid delays in receiving my claim settlement?

To avoid delays in receiving your claim settlement, follow these steps:

  • Provide accurate and complete information when filing your claim.
  • Submit all required documents promptly.
  • Communicate promptly with your insurance company and respond to their requests.
  • Keep records of all interactions and document any damage with photos or videos.
  • Understand your policy terms and coverage to prevent misunderstandings.
  • Follow up regularly with your insurer to track the progress of your claim.
  • Be patient but persistent in pursuing your settlement.

Can a delay in filing claims lead to claim rejection?

Yes, a delay in filing insurance claims can indeed lead to claim rejection. Most insurance policies specify timeframes within which claims must be reported. Failing to file a claim within these deadlines may give the insurance company reason to deny it.

Timely reporting is vital because it allows for proper investigation, prevents the loss of crucial evidence, and ensures compliance with policy terms. To avoid potential claim rejection, it's essential to report and file your claims promptly in accordance with your policy's requirements.

Secure your vehicle with budget-friendly plans

At Bajaj Finance Insurance Mall, you can check various motor insurance and subscription plans for covering various contingencies that your current insurance plan may not include. For example, you can buy a key safeguard plan that covers the replacement cost of your car keys in case they are lost or stolen at a nominal fee of Rs. 749.
These pocket-friendly plans also cover accidents, illness, card fraud, and other emergencies. Moreover, the buying journey is 100% digital and requires zero documentation.

How many days after the accident can we claim for car insurance?

For cashless claims, you need to contact the insurer within 24 hours of getting admitted to the hospital. For reimbursement claims, you should contact the insurer within 48 to 72 hours of hospitalisation.

Who gets the insurance check when a car is totaled?

If opted for a reimbursement claim, the insurance company will transfer the amount to your registered bank account. In case of a cashless claim, the insurer will directly clear the bills with the network garage.

How long does it take for the insurance company to pay out the total loss amount?

Usually, the insurance companies take around 7 to 10 days to complete the claim process. This time is also only possible if you have submitted all the required documents. It may take longer if there are any issues in the claim process or document requirements. In that case, the insurance company will contact you for resolution and settle the claim at the earliest.

Frequently asked questions

What is the maximum time allowed to raise a claim against your car insurance policy?

The maximum time to claim on car insurance varies based on the policy terms and conditions. Generally, the standard time limit to file a claim after a car accident is 30 days. However, some insurance companies may have a longer duration of 60 or 90 days. It is important to carefully read and understand the details of your car insurance policy to avoid missing out on the time limit for filing a claim.

Can I claim car insurance after six months of incurring damage?

No, you cannot claim on your car insurance policy after six months of incurring damage. Every insurance company has set a limit within which the policyholder needs to file the claim, and after that, the claim will get rejected. The reason is that the damage may worsen over time, and the insurer may find it difficult to assess the impact caused by the accident. It is always recommended to report the claim as soon as possible, so you do not lose out on your rightful compensation.

How long does an insurance company have to investigate a claim?

An insurance company typically has 30-45 days to investigate a claim. However, this may vary depending on the state and type of claim. Some states may have shorter or longer deadlines for insurance companies to investigate claims. It is important to check with your state’s insurance department or an attorney to determine the specific time frame for your claim.

How long does an insurance company have to settle a claim?

After completing an investigation, an insurance company is required to settle a claim within a set period of time. This period varies by state and type of claim, but typically ranges from 30-60 days. If additional investigation is needed, the insurance company may request an extension. However, the insurer must notify the policyholder of the reason for the delay and the estimated time frame for resolution.

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