Claim car insurance: Car insurance in India is frequently viewed as just a legal formality—until an accident occurs. By 2026, the car insurance claim process in India has become quicker yet more intricate, featuring online claims, AI-driven inspections, cashless garages, and stringent IRDAI regulations. Whether it’s minor dents or serious collisions, most claim denials arise not from insufficient coverage but from failing to adhere to the proper procedures.
This in-depth review of the car insurance claims process in India sheds light on the correct instances to file a claim (and when to avoid doing so), in addition to strategies for steering clear of common mistakes that could lead to financial losses for policyholders.
What Is a Car Insurance Claim?
A car insurance claim represents a formal appeal to your insurer for coverage of repair, replacement, or compensation expenses in line with your policy’s terms.
You are eligible to claim insurance for:
- Accidental damage
- Scratches, dents, bumper damage
- Theft or total loss
- Fire, flood, cyclone, earthquake
- Vandalism or third-party damage
Table of Contents
Types of Car Insurance Coverage
In India, car insurance consists of two primary types of coverage: third-party, which is required by law and safeguards others, and own damage, which provides protection for your vehicle in case of loss or damage. Understanding these distinctions is essential before you submit a claim.
Third-Party (TP) Insurance—Mandatory by Law
Third-party (TP) insurance is legally mandatory in India and covers damage or injury caused to others, not your own vehicle.
- Covers injury, death, or property damage caused to others
- Mandatory under the Motor Vehicles Act, 1988
- Does NOT cover damage to your own car
If you hit a wall or your car is damaged by an uninsured vehicle, a TP-only policy pays nothing.
Own Damage (OD) / Comprehensive Insurance
- Covers damage to your own vehicle due to accident, theft, fire, flood, riots, etc.
- Comprehensive policy = TP + OD
- Standalone OD policies are also allowed in 2026
Insured Declared Value (IDV) – The Backbone of Claims
The IDV is the highest amount your insurance company will pay out in the event of a total loss or theft.
It is not the same as resale value or emotional significance.
Depreciation on IDV (IRDAI standard):
- Depreciation on IDV (IRDAI standard):
- Less than 6 months: 5%
- 1 year: 15%
- 3 years: 30%
- 5 years: 50%
While inflating or under-declaring the IDV may lower your premium, it can backfire when you file a claim.
Add-ons That Change Your Claim Experience
These additional options influence how much you will spend:
- Zero Depreciation: Ensures no depreciation on parts that are replaced
- Consumables Cover: Includes engine oil, grease, nuts, and bolts
- Return to Invoice (RTI): Covers the complete on-road price in case of total loss
- Engine Protect: Essential for damage caused by floods or water
Without these add-ons, even cashless claims won’t be entirely cashless.
The 4 Phases of Car Insurance Claim Process
A car insurance claim progresses through four key stages: intimation, inspection, verification, and settlement.
Understanding this process can help avoid delays and prevent claim rejections.
Phase 1: Claim Notification (FNOL)
- Notify the insurance company within 24 to 48 hours.
- Utilize the app, website, or customer service.
- Do not proceed with vehicle repairs until it has been inspected.
Phase 2: Inspection & Damage Evaluation
- A physical surveyor is required for significant accidents.
- AI-assisted self-inspection is available for minor damages.
- Approval for small claims can be finalized in just a few minutes.
Phase 3: Document Review
- Necessary documents include:
- Policy document.
- Driving license.
- Registration Card.
- Photos/videos.
- FIR (only if required).
Phase 4: Settlement
- Cashless: The insurer makes direct payments to the garage.
- Reimbursement: You pay upfront, and the insurer will reimburse you later.
FIR Rules (Very Common Confusion)
Filing an FIR is only required for theft, injuries to third parties, or significant accidents—not for minor scratches or damage to your own vehicle. Being informed about this can help you avoid delays and the possibility of claim rejection.
FIR is mandatory for:
- Theft
- Third-party injury or death
- Major accidents involving other vehicles
FIR is NOT required for:
- Minor scratches
- Small dents
- Hitting a wall or pole
The Real Cost of Filing a Claim
A car insurance claim often costs more than it appears. Deductibles, NCB loss, and depreciation reduce the final payout, making some claims financially unwise.
Total Loss & the 75% Rule (Not 80%)
A car is declared a Constructive Total Loss (CTL) when:
- Repair cost > 75% of IDV
- The insurer pays the full IDV.
- Salvage goes to the insurer.
- Policy ends.
The “80% rule” does not apply to car insurance in India.
Special Scenarios Explained
Hitting a Wall
- Covered under Own Damage
- FIR not required
- Inform insurer immediately
Not Your Fault Accident
- Claim via your OD policy for fast repair
- NCB still lost (knock-for-knock system)
Accumulated Scratches
- Multiple old damages = claim rejection
- One claim = one incident only
Common Reasons for Claim Rejection
A large number of car insurance claims are rejected due to trivial mistakes instead of a lack of coverage. Small issues like delayed notifications or mismatched paperwork often lead to a denial.
- Delayed intimation
- Invalid or expired driving license
- Driving under the influence
- Policy expired
- Commercial use of a private car
- Misrepresentation of facts
How Long Does a Claim Take?
Processing claims takes different amounts of time depending on the damage type and how quickly the process is started. Minor claims are generally settled within a few days through online inspections, but major claims related to accidents or theft may take longer because they require verification and documentation. Awareness of the timeline can facilitate your repair planning and help you avoid delays that aren’t needed.
| Claim Type | Time |
| Minor damage | 3–7 days |
| Major accident | 7–15 days |
| Theft | 30–90 days |
No “processing fees charged by insurers” (only deductibles apply).
When You Should Avoid Claiming Insurance
- Repair cost is low.
- Damage is cosmetic.
- You want to protect NCB.
Frequently Asked Questions (FAQs)
What does a car insurance claim actually mean?
A car insurance claim is an official request made to your insurance company to cover the costs of repairs, replacements, or compensation following damage, theft, or loss—according to the terms and conditions of your policy.
Can I claim car insurance for minor scratches or dents?
Yes, you are eligible to claim for scratches and minor dents with an active own-damage or comprehensive policy. That said, due to deductibles and the risk of losing your No Claim Bonus (NCB), it’s often not a good financial decision to pursue claims for small repair expenses.
Is FIR compulsory for a car insurance claim in India?
An FIR is required only in situations of theft, third-party injury or death, or major accidents. For minor self-damage, such as scratches or bumping into a wall or pole, an FIR is generally not needed.
How long does a car insurance claim take to settle?
Minor claims are often settled in a timeframe of 3 to 7 working days, especially when processed online.
Minor claims are often settled in a timeframe of 3 to 7 working days, especially when processed online. Major accident claims, however, may take 7 to 15 days, while theft claims can take as long as 30 to 90 days, depending on the police investigation.
Is it always worth claiming car insurance?
No. When repair costs are low (commonly below ₹3,000–₹5,000), it’s often advisable to pay out of pocket to preserve your No Claim Bonus. Insurance is most effective for financial shocks, rather than for cosmetic damage.
Claiming Insurance Is a Financial Decision—Not an Emergency Reaction
Car insurance claims in India are now easy to understand—if you know the rules. Most losses occur not due to policy gaps, but because of poor decisions, late notifications, or a lack of awareness. Always calculate before making a claim, document everything, and remember: insurance is a financial tool, not just free money.
Pro Tip: Remember to bookmark this guide before your next road trip or policy renewal.
