Car owners need to get their vehicles insured, it is mandatory, we all know that. In case of an accident, the first thing that comes to our mind is claiming insurance on the damages – but how many of us know whether multiple claims can be filed in a year?
Also, do we know whether there are any restrictions on filing multiple insurance claims in a year?
According to experts, while there is no particular limit on filing several insurance claims* within 12 months, customers should avoid doing so as it can impact one's insurance policy.
Let's read why you should refrain from filing multiple insurance claims and how they can impact the actual policy:
1. Impact on NCB (No Claim Bonus): A No Claim Bonus is given to the insured party on their premium if no claim request is raised during a policy year. The discount percentage increases every year if no claims are made by the insured party in the following years also. So, if no claims are raised for five consecutive years, then this discount can go up to 50 per cent. So, if any claim is filed in a single year one can lose these bonus benefits. Therefore, a claim should be made only if the repair cost is higher than the NCB discount.
2. Increase in premiums: Another downside of filing multiple claims is that the insurance company may raise the premium rate the next year as you pose a higher risk to the insurer.
3. Zero depreciation: If you have taken a car insurance policy which has zero depreciation coverage, then while making claims, the company may not consider this kind of coverage. Therefore, it is important to check the limitations of such a policy before making an insurance claim.
4. Deductibles: If the cost of repairs is much less than the deductibles mentioned in the insurance policy, then it is better not to file a claim. However, if you still want to file a claim, then be ready to be under-compensated in such a scenario.
For easy and hassle-free car insurance claims, choose: Chola MS
What you should keep in mind while making insurance claims:
1. Although the small dents and scratches on your car may irritate you, it is advisable to get these repaired through your pocket rather than seeking insurance claims. This is because claiming such minor damages may wipe off the policy cover benefits. Therefore, the wiser option is to wait for another claim-free year.
2. While it is often difficult to decide when to make an insurance claim, one should keep these two things in mind while making the decision:
A. If the cost of repairs is more than the deductibles cost mentioned in the policy, it is better not to make a claim. A deductible is an amount to pay the policyholder before the company starts paying. So, if the repair cost is lesser than the deductible amount, then the insurance company won't have to pay.
B. While making claims for small repairs, one should make sure that these costs are much higher than the No Claim Bonus amount.
So, choose Chola MS for easy and hassle-free car insurance claims and benefit from a network of 8,500+ cashless garages across the country.
*Terms and conditions apply
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