Just think, you went on vacation with your family on your car and your car met with an accident or suppose your car’s headlight or rear view mirror went off. What would be your next thought? Well, if you are having car insurance, then your thought will be “It’s ok, I have insurance”. But what if you don’t have insurance, then your entire vacation will be ruined and as well as you will be tensed for months for the losses you have to incur. But are you aware that there are cases when not to claim a car insurance policy is quite beneficial for you only. Here are the situations when not to file a Car Insurance Policy claim.
When not to Claim a Car Insurance Policy
Situation 1 – When the claim value is less than No Claim Bonus
If you don not file any claim for the year, then you can get discount up to 20% on the premium amount. This discount is known by the name of No Claim Bonus. Well, the premium consists of two portions – third party premium and own damage premium.
NCB that is No claim bonus is applicable only on own damage premium. In addition to this, it consists of more than 80 per cent of the car insurance premium. For example – A owns an Eco Sport car in which he pays total premium of Rs. 8,000. In this 8,000, the own damage premium is 5,000. So if A has not taken any claim in the year, he will get 20% NCB which is to be calculated as (5,000 ×20)/100.
Situation 2 – When third party may pay off the repair expenses
Now suppose your car is met with an accident and you have not file any claim in the previous year so you are having huge NCB benefits. Assume your car met with an accident. The options that are available with you are –
- pay the repair cost from your own pocket.
- file the claim for car insurance plan.
- file for third party liability insurance.
So, if the accident has happened due to the fault of other vehicle driver, then you can opt for third party liability insurance. However it is quite a complex process. As just after the accident you have to file FIR against the accident and the claim has to be made at Motor Accident Claims Tribunal, as civil courts do not decide on motor insurance claims.