Rajat bought a new car. A few months later, a passing vehicle hit his stationary car. Rajat was almost filing an insurance claim for the damages. But his friend discouraged him. He advised Sharma to pay for the damages from his own pocket. Claiming for such a minor accident could lead to a future hike in premium.
In fact, this holds true for all kinds of insurance, whether motor, medical, or property. An insurance claim can affect your premium in many ways.
Frequency of Claims
Filing frequent claims for minor damages is a bad idea. It has an adverse effect on the premium amount. This is especially true if the damages are your fault. If you file too many claims, the insurer company may not even renew the policy.
Nature of Claims
Not all claims are equal. Consider the case of home insurance. Try to solve minor issues like water damage and mould on your own. Remember, insurance companies accept or reject claims based on certain factors. This includes your claim history and the nature of the claim.
Filing an insurance claim may hike the premium by 20 to 40%. Sunil Kapoor had a sudden heart attack last year. He underwent heart surgery and his health insurer readily honoured his claim. But when Sunil tried to renew the policy, his new premium was substantially higher.
Whether to File or Not to File a Claim
Rate hikes vary from one insurer to another. Some insurers may forgive your first accident if you have a good driving record. Kumar had taken a motor insurance plan from Bajaj Finserv. Having filed for claims previously, he worried that his premium would rise. But Kumar filed claims only after substantial gaps. So, his policy premium remained unchanged. Still, try to file claims only in the event of devastating damage. If your car has just a couple of broken lights, take care of the repairs on your own.
Value of Claims or Number of Claims
More than the value of claims, the number of claims makes a difference. In case of home insurance, it makes sense to claim for a major burglary. But avoid filing an insurance claim if only your mobile phone is gone.
Insurance Claims Process
Follow the insurance claims process diligently for a successful insurance claim settlement. Has your car met with an accident? Then inform your insurance representative immediately. Supply the police report and the car repair bills. Make sure your paperwork is intact. This facilitates the procedure of insurance claim.
Insurance Claim Settlement
For prompt insurance claim settlement, furnish your insurance company with the necessary details. Provide your contact number and policy number. Make sure to describe the nature of loss, as well as the date, time, and location of loss. The insurance claim form asks for all this information.
Insurance companies do try to honour your claims. But it is in your interest to deal with minor issues on your own. Consider filing an insurance claim only for major accidents or illnesses. Ensure that there is a gap of a few years. This will allow you to keep your insurance premium in check.