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Claim Settlement-Motor Insurance

Claim Settlement-Motor Insurance :

Claim arise when

(1) The insured’s vehicle is damaged or any loss incurred.

(2) Any legal liability is incurred for death of or bodily injury

(3) Or damage to the third party‘s property.

The claim settlement in India is done by opting for any of the following by the insurance company

(a) Replacement or reinstatement of vehicle

(b) Payment of repair charges

In case, the motor vehicle is damaged due to accident it can be repaired and brought back to working condition. If the repair is beyond repair then the insured can claim for total loss or for a new vehicle. It is based on the market value of the vehicle at the time of loss. Motor insurance claims are settled in three stages. In the first stage the insured will inform the insurer about loss. The loss is registered in claim register. In the second stage, the automobile surveyor will assess the causes of loss and extent of loss. He will submit the claim report showing the cost of repairs and replacement charges etc. In the third stage, the claim is examined based on the report submitted by the surveyor and his recommendations. The insurance company may then authorize the repairs. After the vehicle is repaired, insurance company pays the charges directly to the repairer or to the insured if he had paid the repair charges. Section 110 of Motor Vehicle Act, 1939 empowers the State Government in establishing motor claim tribunals. These tribunals will help in settling the third party claims for the minimum amount

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