A proposal to make motor insurance claims easy and quick; for claims up to Rs. 75,000 surveyor reports not needed - IRDAI
NEW DELHI--(BUSINESS WIRE)--Under a motor insurance policy, a policyholder is entitled to receive compensation for the damages that occurred to the vehicle as per the policy terms. A 'claim' is the formal request by the policyholder to the insurance company asking them to pay the claim amount. To make the process easy and help the policy customers get compensation promptly, the IRDAI has drafted a proposal, which states that motor insurance claims up to a limit of Rs. 75,000 will not need a loss assessment report by a surveyor.
Currently, as per the IRDA rules, all claims that are above Rs.50,000 for motor insurance, and claims more than Rs. 1 lakh for others compulsorily require a surveyor report to settle the claim. Generally, when a surveyor is appointed, it takes about 30 days to review the claim and submit the report, which delays the claim settlement process.
The proposal emphasizes on establishing a clear and transparent process so that the beneficiaries receive the policy benefits quickly. The proposal submitted by two committees, namely the Bhandari Committee and Malhotra Committee, further suggested that the workforce within the insurance company must be utilized up to the loss limit so that the claim process is quick and hassle-free.
Several insurance experts believe that the enhancement of limit to Rs. 75,000 for motor insurance claims without a surveyor's report has come at the right time when the insurance companies are using application-based artificial intelligence to assess and settle claims. Insurers in India are now settling claims based on the videos shot and submitted by the policyholders as evidence to underpin their claim.
Filing for a motor insurance claim online
With the motor insurance companies offering online services, filing a claim has become easier than ever before. Policyholders who have the relevant documents (as mentioned in the policy papers) and are filing for a claim that is less than Rs. 75,000, with the new proposal by IRDAI can now expect their HDFC Ergo motor insurance claim to be settled faster.
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