Understanding the Total Loss Car Insurance Claim Process

What is a Total Loss in Car Insurance?

In car insurance, a vehicle is considered a total loss when the repair costs after an accident exceed 75% of its Insured Declared Value (IDV). This is in accordance with the guidelines set by the Insurance Regulatory and Development Authority of India (IRDAI). This applies to total loss car accident situations as well, where repair costs are too high to justify fixing the vehicle.

This also applies to theft cases where the car is not recovered, in which case it is treated as a total loss vehicle.

• Real-life Example:

Let's say your car's IDV is ₹8 lakhs. After a major accident, the repair estimate is ₹6.5 lakhs. Since this is over 75% of the IDV, your insurer will declare it a total loss and provide a settlement close to the IDV, minus any deductibles.

Step-by-Step Process of Filing a Total Loss Car Insurance Claim

Here's how you can navigate the total loss claim process smoothly:

1. Immediate Intimation to the Insurer

As soon as the accident or theft occurs:

• Inform your car insurance provider, such as Jio Insurance Broking, via call, email, or mobile app.

• Share basic details of the incident, including time, location, and vehicle registration number.

2. Filing a Police FIR

• For accidents involving third parties or theft, file an FIR at the nearest police station.

• This report becomes a crucial document for claim approval.

3. Vehicle Inspection by Surveyor

• The insurance company will appoint a licensed surveyor who inspects the car at the garage or accident site.

• The surveyor submits a report estimating repair costs and, if applicable, recommending a total loss.

4. Submission of Required Documents

You'll need to submit:

• Car insurance policy copy

• RC (Registration Certificate) of the car

• FIR copy (in case of theft or major accidents)

• Driving licence

• Claim form (duly filled)

• Vehicle keys

• RTO forms for deregistration (Forms 28, 29, 30, and 35 if under loan)

• No-objection Certificate (NOC) from the financer if your vehicle is financed

5. IDV Confirmation and Applicable Deductions

The insurer calculates the final payout after deductibles, salvage value (if applicable), and depreciation.

Jio Insurance Broking ensures transparent calculations and quick communication.

6. Final Claim Settlement

Once approved, the claim amount is disbursed to your bank account or to the financier for a loan.

The insurer may take possession of the damaged vehicle, which is then auctioned for salvage.

Total Loss vs Constructive Total Loss: What's the Difference?

When it comes to car insurance claims, it's crucial to understand the terms "Total Loss" and "Constructive Total Loss." Both refer to scenarios where a vehicle is deemed beyond repair, but the conditions and implications can differ.

Total Loss vs Constructive Total Loss: What's the Difference?

• Total Loss: When the repair cost exceeds 100% of the Insured Declared Value (IDV), the vehicle is considered a total loss.

• Constructive Total Loss: If the repair cost exceeds 75% of the IDV, as per IRDAI guidelines, the vehicle is a constructive total loss. This is more common in accident scenarios.

While both situations result in a complete payout of the insured value, constructive total loss is more common, especially after accidents.

Important Tips to Maximise Your Total Loss Insurance Claim

Here are a few important tips to maximise your total loss vehicle claim:

• Ensure Your Car is Insured with the Correct IDV: Avoid under-insuring your car to save on premiums. Under-insuring reduces your payout in the event of a total loss claim.

• Renew Your Policy on Time: Ensure your policy is active and up-to-date, as lapsed policies don't cover claims.

• Keep Digital Copies of Documents: Having quick access to policy and claim documents speeds up the claim process.

• Choose a Trusted Insurance Broker like Jio Insurance Broking: An experienced broker will guide you through the process, help with accurate documentation, and negotiate with insurers on your behalf.

How Is the Total Loss Claim Amount Calculated?

When a vehicle is declared a total loss vehicle, the claim amount is based on the Insured Declared Value (IDV). Deductions, such as depreciation, salvage value, and deductibles, are subtracted from the IDV to calculate the final payout.

The insurer assesses the vehicle's age and condition to determine the final settlement. It is important to ensure that the IDV is correctly updated at the time of policy renewal to avoid discrepancies during the claim process.

Common Reasons for Total Loss Car Insurance Claim Rejection?

Even in total loss situations, claims may be rejected for several reasons. Some common causes include:

• Policy Lapse: If the policy had expired or lapsed at the time of the accident.

• Incorrect or Incomplete Documentation: Missing documents, such as the FIR or vehicle registration, can delay or reject claims.

• Non-Disclosure of Modifications: If the car was modified without informing the insurer, it could lead to rejection.

• Fraudulent Claims: Any attempt to falsify the claim will result in immediate rejection.

To avoid these issues, always ensure that your documents are complete, up-to-date, and accurate.

Why Choose Jio Insurance Broking for Total Loss Claims?

At Jio Insurance Broking, we understand how stressful a total loss can be. That's why we offer:

• End-to-End Assistance: From documentation to coordination with insurers.

• Digital Claim Tracking: Real-time updates on claim status.

• Expert Advice: On choosing the right car insurance policy with suitable IDV and add-ons.

• PAN India Support: Extensive partner garage network and 24x7 assistance.

With us, you don't just buy a policy, you buy peace of mind.

Total-loss scenarios may be rare, but they can leave you financially vulnerable if not handled properly. Understanding the total loss insurance claim process empowers you to act quickly and confidently when the unexpected strikes.

Need help with your claim or want to explore better car insurance options? Reach out to Jio Insurance Broking today. Because your car deserves the best protection.

Frequently Asked Questions