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Permissible Car Insurance Claims in a Year

By Vikas Chandra Das
29 November 2022, 1:14 PM

You may protect your life and belongings with several different policies that can be purchased in India. However, some might consider the legislation and rules governing car insurance unclear. 

A car insurance policy is mandatory for drivers in India, and no one may drive without it. In an accident, the cover will take care of the driver and any passengers in the vehicle. On the other hand, there are a few instances where this is not the case. 

This page provides information on how many claims you are permitted to make on your vehicle insurance policy in India each year, based on your previous driving record.

Allowed Car Insurance Policy Claims in India During a Year

Technically, there's no time limit as far as making car insurance claims goes in a year unless the car's insured value becomes ZERO due to earlier claims and the diminishing value of the vehicle. However, claims for add-ons do have a cap. For example, a zero depreciation add-on cover can be given only twice during the policy term, which can be for a year or three years. Similarly, NCB protection add-on cover can be claimed for a maximum of two times during the policy term. 

How Many Car Insurance Claims is Too Many?

If you're a driver in India, your insurance policy may stipulate that you can only file one car insurance claim annually. This is a legal requirement in India, but it doesn't mean you won't have to deal with multiple claims in one year.

In fact, according to a 2013 study, motorists in India are responsible for an astounding number of car insurance claims: an average of 7.5 per vehicle. That's more than double the number of claims made by drivers in the United States (3.7 claims per vehicle).

Why is this happening? There are several reasons:

  • India has a high rate of accidents, so people are more likely to suffer damage to their cars.
  • Indian drivers are often less experienced than their American counterparts, which leads to more accidents and more claims.
  • Indian insurers are typically less generous with benefits than other countries, so people are more likely to file multiple claims to get the most comprehensive coverage possible.

If you're a driver in India, you must be aware of these statistics and take steps to protect yourself from potential car insurance claims.

Multiple Car Insurance Claims in India - What Happens?

Multiple car insurance claims are allowed but can lead to the following that you may not like.

No-claim Bonus

If you have multiple car insurance claims in India, your no claim bonus (NCB) will be void. This means that you will not be able to get any discount on your premium when you renew your policy. In addition, if you have an accident while you are not covered by insurance, you may have to pay a higher premium when you do purchase a policy.

Increased Premium

Insurers now analyze the risk profile of their clients and charge them an increased premium if they make repeated claims. The premium amount will depend on the insured declared value (IDV), the type of claims made in the past, and the amount. The premium increase is typically between 10% and 15% of the previous premium.

Zero Depreciation Limit

Although car insurance in India is mandatory, the amount of money a driver can claim in a year is limited. Including all brand-new or reasonably recent (up to five years) vehicles, zero depreciation is an absolute 'must buy' at a price of 15–20% of the regular premium. This limit applies to both property damage and personal injury claims.

The reason for this limit is the zero depreciation limit (ZDL). The ZDL is the amount a driver can claim for the total value of their vehicle(s) during a year. The ZDL applies to both private and public vehicles. It also applies to cars that are owned by the driver, as well as rented vehicles. However, the ZDL does not apply to vehicles used for commercial purposes.

The ZDL was introduced in India to prevent drivers from claiming too much money in car insurance claims. 

Step-by-Step Car Insurance Claim Procedure in India

The process of filing a car insurance claim in India is relatively simple. The following steps should be followed to file a claim:

  1. Complete a claim form and submit it to your insurance company.
  2. Present your proof of vehicle ownership (e.g., registration certificate, driving licence, etc.) to the surveyor who comes to inspect at the incident site.
  3. Provide information about the other party involved in the accident (e.g., driver's licence number, name, address).
  4. Submit photographs of the scene of the accident and any damaged property.
  5. Make a list of all expenses related to the accident (e.g., medical bills, rental car costs, lost wages).
  6. Request a settlement from your insurance company based on the information provided in step 5.


Car insurance online claims in India are usually processed quickly, and the average time from payment claims is about two weeks. However, a few factors can affect this time frame, so it's always important to check with your insurer. You should also make sure to use your insurance wisely and not make false claims, which can lead to consequences.

You can now buy and learn more about car insurance online as well!


1. How many car insurance claims may I make in India each year?

In general, there are no annual restrictions on the number of automobile insurance claims you may submit. An automobile insurance claim influences no-claim bonus (NCB). Repeated claims within a year may result in a higher premium when you renew.

2. Can my car insurance policy in India be cancelled for too many claims?

The insurance company cannot terminate your auto insurance policy in India simply because you have submitted multiple compensation claims.

3. If the bumper of my vehicle is damaged, do I have grounds for a claim?

A basic car insurance policy will not pay for any damage to the vehicle's structure. Even a comprehensive plan does not cover the same. You may need to buy an add-on for the same. This will result in an increased premium.

4. Will the insurance providers allow you to claim online?

You can file your claim online without going to a physical office. 

5. What papers are required for online car insurance claims?

To file a car insurance claim online in India, you need to have the following documents:

  • Your ID card
  • The registration document for the car you're claiming on
  • The vehicle's proof of insurance (if it has one)
  • Your driver's license and passport if you're filing a claim on someone else's behalf



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