Ok so you met with an accident. Relax. It’s not the first time it happened to anyone, and unfortunately, it won’t be the last. But what you should know is that you should always have your policy details at hand, so that you can choose from the following two ways to claim your insurance:
- On-the- spot claim
- Standard procedure
Call your insurer immediately after the accident and request for an assessor to be sent to evaluate the damage. The assessor will make an offer to settle the claim, or the vehicle will be sent to an agent of garage for an estimate of the repairs, which would then be approved and settled. But remember, if you have any penalties, deductibles and other technical excess in your policy, they will be applied before the payment is made to you.
Call your insurer and inform them about the accident, and report the accident to the police immediately to obtain a police report. Then you collect and fill the relevant claim forms and return to the insurer with all required documents such as registration copy of vehicle, driving licence, purchase receipts, salvage, supporting evidence, etc.
Make sure you keep copies of the claim form and paperwork as well as a record of all communication between you and your insurer.
One more thing! Check if your insurer has a list of approved garages that you should take your vehicle in for repairs before going to your own.
The value of the claim will depend on either one of the three following factors:
- Spare parts
- Total loss
The price will be based on market value. This means it could be an agent’s price, or the open market reconditioned / secondhand price, depending on your vehicle.
This will be based on the garage estimate that will be approved by the insurer
If the repair cost is more than 75% of its insured value, or if the vehicle cannot be brought to roadworthy condition, the insurer will pay offer you the total loss according to the market rate of the vehicle, taking into consideration the sum insured at the time of the accident.
Yes, and that means strictly no monkey business! If your claim is in doubt, the insurer can and will request for an investigation, and will decide to pay depending on the report obtained from the investigation officer.
More specific reasons will be:
- If the driver doesn’t hold a valid license.
- If the driver had been intoxicated.
- If someone else falsely claimed to be driving at the time of the accident (as in the case of someone with an invalid driver’s license etc.)
- If the driver had no permission from the insured to drive the vehicle.
- If extreme carelessness and / or negligence is evident / proved.
- Violation of any other policy condition such as repairs being carried out in an unlisted / unapproved garage.
Third Party Insurance.
No. You can’t transfer an insurance policy to another person in this scenario. If you’re the new owner of a second hand vehicle, make sure you have a new insurance policy. You can transfer it to your new car, but the new owner of your old car can’t use your policy.
Congratulations! Do you finally feel like an adult now? All you need to unleash yourself on the roads of Sri Lanka is:
- A copy of the vehicle registration book
- A vehicle inspection
- Completed proposal form
For renewal with existing insurer:
We get it. Loyalty is quite a rare quality these days! You don’t need any additional documents to renew with the same insurer. Just follow the renewal instructions from your insurance provider.
For change of insurer at renewal:
Single and ready to mingle with the insurers? Keep your eyes and ears open since insurers give new customers better discounts! In case you decide to switch, remember to:
- Submit a copy of the vehicle registration book
- Submit the completed proposal form
- Submit renewal notice from your previous insurer
- Carry out an inspection at the discretion of the insurer
Some companies charge extra premium for vehicles on a lease. Leasing companies also require the insurance to be extended to cover their financial involvement by way of an assignment endorsement to the policy.
All insurers require a ‘No objection letter’ from the relevant leasing company prior to settling claims.