Car Insurance Claim And IDV: All You Need To Know

Car Insurance Claim And IDV: All You Need To Know


Accidents on the road are unfortunate, and repairing the damage to your car can be financially burdensome. While third-party insurance is legally required, it doesn’t cover damages to your vehicle. Opting for comprehensive Bajaj Allianz car insurance is essential, providing coverage for your vehicle’s damage and allowing you to offset repair costs through insurance.

The Concept Of Claims In Car Insurance

Bajaj Allianz car insurance claims arise from vehicle damage, loss, or theft, necessitating the insurer’s financial support for repair costs. Common triggers include theft, accidents, or damage from natural or artificial disasters. However, willful ignorance or illegal activities are invalid grounds for a claim. Understanding car insurance benefits is crucial for drivers to ensure financial protection in accidents or unforeseen incidents. *

Filing A Claim: Step-By-Step Process

  1. Notification: Promptly inform your car insurance company about any incidents that may lead to a claim, such as collisions.
  1. Vehicle Inspection: If your vehicle is drivable and the insurance company approves, take it to a network garage, preferably within the insurer’s cashless network.
  1. Insurance Surveyor Evaluation: Await the arrival and evaluation of your vehicle by the car insurance surveyor to assess the extent of the damage.
  1. Documentation: Gather all necessary paperwork for the claim, including licenses, car papers, and a completed claim form.
  2. Communication With The Claims Department: Respond to any queries or requests for information from the claims department to facilitate the processing of your claim

After approval, a cashless network garage will handle repairs and bill you for your share. Once you pay, the insurer and the network garage will manage the remaining settlement.

Insured Declared Value (IDV) In Car Insurance

The Insured Declared Value (IDV) represents the notional value of your vehicle, serving as the maximum amount the insurance company will cover for damages or loss. The IDV directly impacts your car insurance premium, with a higher IDV leading to a higher premium.

IDV’s Impact on Car Insurance Cost

Decreasing IDV:

Reducing the vehicle’s IDV may result in a lower premium but comes with risks. For instance, if the original IDV is INR 5 lakhs and you decrease it to INR 4 lakhs, receiving a 20% concession, your claim settlement will be limited to the lower IDV, potentially leading to a smaller payout in case of a total loss. It’s generally not advisable to lower the IDV. ##

Increasing IDV:

Raising the IDV will lead to a higher premium, but it enhances protection. For example, if the original IDV is INR 5 lakhs, and you increase it by 20% to INR 6 lakhs, the claim amount will be higher, providing more flexibility for repair costs.

No Claim Bonus And Its Importance

Minimising claims is vital to keep a lower car insurance premium, with a No Claim Bonus (NCB) offering concession on own damage cover premiums for claim-free years. The NCB can increase to 50% after five years, substantially cutting premium costs. Frequent claims may decrease your default Insured Declared Value (IDV), raising your car insurance premium and impacting resale value. Ensure that you are well aware of how to renew your car insurance. Claims are subject to terms and conditions set forth under the motor insurance policy. ##

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*Standard T&C Apply

 ##All savings are provided by the insurer as per the IRDAI-approved insurance plan.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.