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How Auto Insurance Claims Work

How Auto Insurance Claims Work Blog

When an insured vehicle gets into a mishap, the car claims insurance will often defer, depending on the scenario or situation under which the vehicle sustained damage. No one really plans for it–However, at some point, the unthinkable inevitably happens. Perhaps your car was involved in an accident where no lives were lost, but it took a huge hit, or your vehicle was stolen. In times like these, the insurance you’ve been taking pains to pay off bears its sweet fruit of benefits. Whether your car got pilfered, looted, or involved in an accident (regardless of who was at fault), the first thing that comes into play here is the type of insurance you took out. After this, the condition under which loss or damage came to the car will then factor in.

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In the Case of Theft

In many ways, this particularly unpleasant scenario is where the type of insurance on your car matters the most. The validity of your claim for insurance will only be considered if you possess

Comprehensive cover, theft cover, and third party fire

The primary third party insurance policy doesn’t extend to you or cover your vehicle in the incidence of theft. Instead, it is to protect and compensate third parties in demise, bodily injury, or property destruction.

Circumstance of Theft

Basically, should the car be stolen while not in your possession, you might find your insurance claims rendered invalid. What’s more, considering the nature of the vehicle’s loss, processing a valid claim takes a significant amount of time, as upon notification of the theft, the police and your insurer would have to conclude their investigation first before anything else.

In the Case of a Road Accident

Should you find your vehicle involved in a road accident, you can claim insurance in two ways.
You can:

  • Claim from your insurer, or
  • From the other party’s insurer

Claiming From Your Insurer

You should note that you automatically lose your No Claim Discount (NCD) benefit if you opt to do this. It is also essential that you follow due process promptly. For example, you need to file an incident report with the police within 24hours after the occurrence. Failure to do this within that time frame could mean an RM300 fine for you! Also, expect to inform your insurer of the accident as well promptly. Ideally, if you had your car moved to a body shop endorsed by your insurer as quickly as possible to ensure that you get your vehicle back within a short period. All that’s left is for you to fill the insurance claims document and return it to your insurance company. From there, an adjuster will take over and see to it that work begins on your car.

Claiming From the Other Party’s Insurer

Bear in mind; this only works if you aren’t the party at fault. After you must’ve reported the accident to the police, you’d need to send your vehicle to the workshop of the faulty party’s insurer. You’d also need the services of an adjuster to determine how much the repairs will cost and get a CART (Compensation for Assessed Repair Time). At this point, you’d have to finance the payment for the repairs yourself. After you’ve sent certain documents to the faulty party’s insurer, you’d be promptly reimbursed.

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General and Special Damages Claim

Depending on the coverage your insurance offers, you may be able to lay valid insurance claims to specific damages. For instance, should you suffer injury as a result of the accident, the other party is liable to compensate you. They would pay you fully if they are entirely at fault or partially if you bear some responsibility for the accident, called General Damages, whereas Special Damages refer to the expenses you have to incur as a result of the accident, such as repairs and medical expenses.

Nick Lai
the authorNick Lai
Founder & CEO of NickMetrics Group

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