A Comprehensive Guide on Car Insurance Claim

 Car insurance is a crucial matter, and we believe that every owner should have it. Local consumers, on the other hand, do not purchase automobile insurance in Pakistan for a variety of reasons. So, in this post, we'll talk about automobile insurance, how it works in Pakistan, and how it benefits car owners. What is the mechanism behind it? What is the procedure for filing a claim following an accident or theft?

Law about Car Insurance in Pakistan:

Surprisingly, Pakistan has a good automobile insurance law that requires every owner to cover their vehicle. Owners are required by law to have Third Party Insurance, which means that if other cars are damaged in an accident, including injuries, you must have insurance to cover the loss. You will be fined and perhaps punished if you do not comply. However, the law simply exists in paperwork because it has not been implemented in the country. A substantial proportion of people either do not purchase insurance or are unaware of its existence.

In Pakistan, there are primarily three forms of automobile insurance:

• Car Insurance with Third-Party Liability.
• Car insurance that covers everything.
• Collision Car Insurance.

Car Insurance with Third-Party Liability:

This insurance will cover the losses caused to a third party as a result of an accident caused by your negligence. It does not, however, cover damage to your vehicle or theft of your vehicle. This insurance will only cover damage to a third party's vehicle and injury to the other vehicle's driver/passenger. In other words, it will guard you from harm inflicted by you.

Car insurance that covers everything:

This is the best auto insurance for owners since it covers the driver, their vehicle, and any damages caused to a third party in the collision. Furthermore, this insurance protects you from a variety of perils, such as floods, riots, robbery, and fire.

This sort of insurance allows you to file a claim for incidents caused by your negligence. Then, in the event of theft, it will make it simple to replace the vehicle. Furthermore, in the event of an accident, it will cover you regardless of whether it was your fault or not. Last but not least, it is simple to use.

Collision Car Insurance:

This is the best auto insurance for owners since it covers the driver, their vehicle, and any damages caused to a third party in the collision. Furthermore, this insurance protects you from a variety of perils, such as floods, riots, robbery, and fire.

This sort of insurance allows you to file a claim for incidents caused by your negligence. Then, in the event of theft, it will make it simple to replace the vehicle. Furthermore, in the event of an accident, it will cover you regardless of whether it was your fault or not. Last but not least, it is simple to use.

How to Claim Car Insurance?

Most significantly, it is dependent on the type of insurance you have; if it is comprehensive, it will cover all of your losses. In the meanwhile, the other two forms of insurance will cover particular damages and losses. As a result, there are several situations for claiming the policy, including:

• Theft/Vandalism
• Accident (Total Loss)
• Accident (Partial Loss)

Theft/Vandalism:

If your automobile or a portion of your car is stolen, you must take the following steps:

• In the event of a theft or vandalism, file a police report/FIR.
• Inform your auto insurance company of the occurrence and make a claim with them. The company will send you a confirmation email.
• If you purchased your vehicle from a bank, go to that bank and fill out a claim form.
• In the case of the automobile company, go to the dealership and share the necessary paperwork. The similar method is followed by the insurance company.
• The police report, CNIC, and car registration card must all be handed over.
• If your automobile has been damaged, which means that a part has been taken, a corporate surveyor will come to your home to certify the vandalism.
• The surveyor will then quantify the damages, and the procedure will begin when you and the firm choose a workshop/dealership to reinstall that spare component; you will go there and obtain the new part.
• It's vital to understand that you'll have to pay a certain proportion of the total price, also known as depreciation, and that it'll only apply to parts, not paint.
• Furthermore, in the event of automobile theft, the procedure may take longer, and the firm may provide you cash or a replacement car, depending on the company.

Accident (Total/Partial Loss):

As previously stated, comprehensive insurance will cover both your and third-party damages. Third-party automobile insurance, on the other hand, will only cover the loss of another person if the accident is caused by your negligence. Before we get into the procedure, it's important to understand that there are two sorts of accidents: total loss (40–60 percent damage to your automobile) and partial damage (40–60 percent damage to your car).

Moving forward, in the event of a mishap:

• When you call the insurance provider, they will send a surveyor to inspect the anticipated loss.
• The surveyor will examine the situation and write a report.
• The covered automobile can either drive to the insurance company's designated workshop or to a workshop of his own choosing.
• So because insurance provider will cover all expenditures, we recommend that you attend the workshop on the business's panel (except depreciation).
• Meanwhile, in the case of the workshop of your choosing, the owner will pay all dues himself at that time, and the insurance company will refund the amount within 15 to 30 days of receiving the surveyor's final report. It implies that it will be more difficult for you.

Depreciation:

We've used the term "depreciation" a few times before, and you might be wondering what it means. In simple terms, depreciation is the amount of money you will lose if you are involved in an accident or are robbed. If your automobile is brand new, you will pay 5% depreciation for the first six months and 10% after a year. It will continue to rise at a rate of ten percent every year, with a maximum limit of sixty percent.

To put it another way, as your automobile ages, its depreciation will increase with each passing year: the older the vehicle, the larger the depreciation.

What Insurance Doesn’t Cover?

In Pakistan, vehicle insurance does not cover:

• Lamps, tires, mudguards, bumpers, and paintwork are all part of the package.
• During normal operating hours at any garage or on the road, the insured vehicle/accessories were destroyed by fire caused by an external explosion, self-ignition, or lightning.
• Finally, commercial cars are only insured in "Total Loss" situations.