Every Filipino car owner must insure his/her car and know how to claim the benefits of the insurance policy. God forbid, if you ever end up in a situation, be it a fender bender or major collision, your car insurance policy will be your biggest saviour. Therefore, knowing the claim process will come in handy, as it will not only speed up the process but save you a lot of time, effort, and money.
Many car owners stop their research at the best car insurance provider; they don’t bother to look up the requirements and process to file an insurance claim. And when the need arises, confusion, suggestions, and stress take over wiseful thinking, and the car owner ends up missing out on the settlement amount.
In this article, we’ll share all about insurance claims and how you can file one on your own. So, let’s get started.
Car insurance policy - A brief overview
Before we start discussing car insurance claims, it is important to understand what your insurance policy covers.
Now, a typical car insurance policy covers the cost of vehicle repair, medical bills, and even legal liabilities. Further, it also ensures that you are compliant with the law, which mandates every car owner to get at least Compulsory Third-Party Liability (CTPL) insurance. In addition to CTPL, which covers third-party injury/death, other common coverages found in an insurance policy are comprehensive insurance and acts of god.
Let us now talk about the basic insurance policy inclusions and exclusions. Most polices cover incidents including - vehicle accidents, fire damage, theft, natural disasters, and vandalism. As for exclusions, insurance providers typically do not cover the following: unauthorised repairs, driving under the influence, and unlicensed drivers.
Go, check out your policy and see what your car insurance policy covers. It is advisable to have full knowledge about the inclusions.
Insurance claim - When to file, timeline & incident
Now that you have basic knowledge about your insurance policy, it’s time to understand the insurance claim process in detail. Starting with the timeline, i.e., when an applicant should file a claim? Knowing this is important, as it impacts the chances of claim approval. Usually, insurance providers in the Philippines require applicants to file a claim within 12 months from the date of the incident. However, some even have a seven to fifteen day window, so it’s best to check your policy for exact details.
In addition to the timeline, there is the type of incident, as not every time your car gets damaged, you are required to file a claim. Broadly speaking, there are minor and major incidents; the former includes small scratches or dents, and the latter brings along significant damage. Always file a claim when there’s a major incident, even if you aren’t sure who is at fault. Don’t consider the minor one, especially when the deductible is more than the repair cost.
Filing an insurance claim - Step-by-step guide
Step I: Contact your insurance provider
The first line of action involves notifying the insurer about the incident, which can be done by either visiting the office personally or by making a call. Make sure to do it soon after checking everyone's and your safety and getting first aid. Remember, the sooner you call, the faster the claim process will begin. We’d recommend reporting within 24 hours of the incident.
Tip: Most insurance providers these days offer a 24/7 hotline number, which you can save and use when needed.
Step II: Gather required documents
If possible, try asking the insurer about the documents required for the claim process or check your policy papers for the same. Most often, you’ll need the police report of the incident, photos of the damaged car and overall scenery, vehicle’s OR/CR, driver’s license, valid government ID, medical bills, etc.
Tip: Keep a photocopy of essential documents (like license, OR/CR, valid ID) ready at home; it will save you time.
Step III. Submit your claim
Time to fill the insurance claim form, which will require you to either visit your insurance provider’s office or website. Make sure to fill out the form completely and accurately.
Step IV: Cooperate with the investigation
For verification purposes, an insurance claim adjuster might come to inspect your vehicle or the scene of the incident, so cooperate to your fullest. Try to answer all the questions to the best of your ability.
Step V: Time for negotiation or taking legal action
The adjuster's assessment and investigation will evaluate the liability that the insurer is ready to take over. However, if you disagree with the settlement offer, there’s the possibility of negotiation.
Step VI: Verdict
The insurance provider will announce the verdict of your claim - approved or denied. An approved claim will lead to payment of all the incident-related costs like repair, medical & hospital, etc.
What if your claim gets denied? You can file an appeal to your insurer, take the matter to IC or file a lawsuit.
Claim-wise filing process & document requirements
Let us now discuss the most common types of car insurance claims and their specific claim process and document requirements.
|
Types of Claim/Process & Documents Requirements |
Third-Party Liability Claims |
Comprehensive/Own–Damage Claims |
Acts of God Claims |
|
Coverage |
Death or bodily injury to a third party |
Theft, collision, own damage, acts of nature, and more |
Natural disasters or events beyond the control of humans, such as floods, earthquakes, typhoons, volcanic eruptions, etc. |
|
Claim process |
|
|
|
|
Document needed |
|
|
|
Factors affecting the claim process time
After filing the insurance claim, it generally takes a few days for the insurer to give a verdict. In case of a straightforward claim, usually under PHP 50,000, one hears from the insurer within 1-3 days. However, in case of large claims or total loss claims, the insurer might take 7 to 15 days or more to respond. Don’t get worried if your insurer is taking a month to get back, as some providers work on such an extended timeframe; just take frequent updates and relax.
Wondering what takes the insurance company so long? Time to understand how a claim is evaluated and cut the provider some slack. So, after you file the claim, the insurer gets to work, which includes -
- Vehicle inspection
- Gathering information from the witnesses
- Evaluate liability and coverage
Claim approval & denial
As discussed, an insurance provider takes a few days to a month to decide the verdict of an insurance claim. There are certain factors that influence the claim speed, including third-party involvement, type of incident, completeness of documents and claim form, etc.
Let us now check out the criteria of approval and reasons for the denial of a claim. Let’s find out -
|
Criteria for claim approval |
Reason for claim denial |
|
|
Mistakes to avoid when filing a claim
Here are some mistakes that can have severe consequences, including the denial of your car insurance claim. So, make sure to avoid these errors -
- Most insurance providers have a strict window for claim submission. So, report the incident asap.
- Each insurer has a specific document requirement; make sure to submit the entire paperwork and double-check to avoid any fallout later, as it can halt the entire process.
- Never give false information to your insurance provider; if caught, not only can your claim get rejected, but your policy could get cancelled.
- After filing the claim, do not make the mistake of sitting back and relaxing. Instead, follow up with the insurer proactively.
Bottom line
Filing a car insurance claim after a car accident or damage is generally considered to be a stressful process. However, with the proper knowledge about the steps to be followed and documents to be submitted, you can speed up the process, save you time & money, and most importantly, increase the chances of claim approval.
Lastly, we’d say, drive safely and always be prepared. Because in the Philippines, it’s all about driving smart.
FAQs
Q1.) Is it possible to file a car insurance claim online?
Ans. Yes. Many car insurance providers in the Philippines offer the facility for applicants to file claims online via a dedicated portal or application.
Q2. When should I file a claim after an accident?
Ans. In the Philippines, insurance claims must typically be filed within a specific period, often 12 months from the date of the accident.
Q3.)What happens if the party involved in the accident has no insurance?
Ans. In such a case, you’ll have to file a claim under your comprehensive policy, or you can sue the party at fault.
Q4.) What if I am partially at fault? Can I still file a claim?
Ans. It all depends on your insurance policy. For instance, if you have violated a certain policy term and condition, your coverage might be denied altogether. In case of no violation, you can file for your damage claim.
Q5.) What if my claim gets denied?
Ans. In this case, you’ll need to file an appeal with your insurer. You can also take up the issue with the Insurance Commission.
Q6.) How long after filing for a claim will I receive the settlement amount?
Ans. The time frame varies as per the insurance provider and type of claim. For instance, straightforward claims get settled within seven days to a month's time; on the other hand, complex cases can take much longer.
Q7.) What is the standard compensation for car accidents in the Philippines?
Ans. While CTPL insurance has a statutory limit on third-party bodily injury/death claims, the payouts for the comprehensive policy depend on several factors, like insured amount, deductibles, etc.
Q8.) Is it advisable to repair the vehicle before claim approval?
Ans. Typically, it is not advisable to get your vehicle repaired before the claim gets approved. Doing so can jeopardise your claim or reduce the settlement amount.
