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How Many Claims are Allowed in Car Insurance Policy In India

Team AckoAug 24, 2021

A car is a significant investment in an individual's life. As a car owner, you also need to meet the legal requirements by insuring your vehicle. Apart from meeting the legal requirements, a car insurance plan provides you with a financial backup if your car is damaged. The process of notifying the insurer for compensation for the vehicle damages is called filing a claim. So, how many claims are allowed in a car insurance policy in India? Let’s find out in this article

How Many Claims are Allowed in Car Insurance

How Many Claims are Allowed in Car Insurance in a Year?

Generally, there are no restrictions on the number of claims you can make under the car insurance policy in a year. However, one should remember that the car insurance claim affects the NCB (No Claim Bonus). Repeated claims in a year may also increase the premium when you renew the policy.

However, suppose you have opted for a Zero Depreciation cover for the car insurance plan, there may be restrictions on the number of claims you can make in a year under the Zero Depreciation cover. The number of claims allowed under this cover varies from one insurer to another.

How Many Car Insurance Claims are Too Many?

There is no specific answer to this question. It depends on the type of claim and the extent of damage to the vehicle. However, it is advised not to raise a claim if the damages are minor such as a dent on the bumper or a broken mirror. File a claim against the car insurance only if the damages are severe.

What Happens if you Make Multiple Car Insurance Claims?

Although there are no limits on the number of claims, you should be mindful when filing a claim against motor insurance. Here are the reasons why you should refrain from filing multiple claims in a year.

  • No Claim Bonus: NCB or No Claim Bonus is the discount on the premium you earn for making no claims during the previous policy period. The percentage of discount increases with every consecutive claim-free year. The discount can go up to 50% if you file zero claims for 5 consecutive years. So, if you make a claim, you will lose out on NCB benefits. Make a car insurance claim only if the cost of repair is higher than the NCB discount.

  • Increase in Premium: If you file multiple claims against the car insurance, the insurer may increase the premium when you renew the policy. Multiple claims mean that you pose a higher risk to the insurance provider, and to cover that, the insurer might increase the premium of the policy.

  • Zero Depreciation Limit: If you have purchased a Zero Depreciation cover for the car insurance policy, the insurer will not consider the depreciation rate when settling claims. However, there may be a limit on the number of claims you can make under this cover in a year.

  • Deductibles: It is better not to file a claim if the repair cost is lower or slightly higher than the deductible mentioned in your policy document. Even if you file a claim, you will receive inadequate compensation due to the deductible component.

ACKO’s Claim Procedure

Claims is one of the critical terms associated with car insurance. In simple words, filing a claim is nothing but you (insured) notifying ACKO (insurer) about the damage, and Claim Settlement is the compensation you receive from ACKO. There is a process to file a claim, and it is usually time-consuming if you go the traditional way. But ACKO being a digital-first insurer, offers a hassle-free experience when raising a claim request.

Here are the steps to file a car insurance claim online at ACKO.

  • Step 1 - Sign in to your ACKO profile via the ACKO website (www.acko.com) or the mobile application.

  • Step 2 - Open your Policy Card and choose the ‘Claim Now’ option.

  • Step 3 - Provide the required information related to car damage and documents (If required) and submit the claim request.

For minor damages, you will receive the claim settlement in a few hours. If the damages are severe, the claim settlement team will contact you to process the claim. ACKO will get your vehicle repaired in 3 days and deliver the car to your doorstep (in select cities).

So, now you know that there are no restrictions on the number of car insurance claims per year. But that doesn’t mean that it is okay to file multiple claims. It is better to avoid making claims for minor damages or if the repair cost is lesser than NCB or equal to the deductible. The most significant disadvantage of making several claims is the loss of NCB and the increase in the insurance premium. 

However, if the damages to your car are severe, the first thing you should do is notify the insurer (in this case ACKO) and file a claim with relevant documents. At ACKO, you can easily file a claim online, and it only takes a few minutes. Lastly, be mindful when you file a claim, take a call on the claim after considering all the factors mentioned in this article.

Frequently Asked Questions

Here are some of the most common questions related to car insurance claims.

Can a car insurance company cancel my policy for making too many claims?

No. Generally, a car insurance provider cannot cancel your policy for making multiple claims. However, the insurer can increase the premium when you renew the policy.

Can I raise a claim if my car has a dented bumper?

Technically, you can raise a claim against the car insurance policy for a dented bumper or broken mirror. But it is advised that you avoid filing claims for minor damages as you lose the NCB discount. File a claim if the repair costs are higher than NCB.

Does ACKO offer cashless claims?

Yes, ACKO offers cashless car insurance claims. You need not worry about repairing your car after filing a claim. ACKO will take care of picking your car from your location, getting it repaired, and dropping back at your location within 3 days. But note that this service is available in select cities.

What documents are needed to file a car insurance claim at ACKO?

You need not submit any physical copies of the documents when applying for a car insurance claim at ACKO. However, you may need to upload soft copies of the relevant documents, depending on the type of claim.

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