How Long Does It Take For Motor Insurance Approvals? What Are The Factors That Influence It

A motor insurance claim is a formal request made to your insurance company to seek compensation for covered damages or losses resulting from an accident, theft, or other incidents related to your vehicle. 

“Most online purchases or renewals will be approved instantly, so you will receive your policy a few minutes after the payment process. When applying in person or if there are complexities (in the event of break-in insurance or a used car, etc. Based on the level of detail needed for the auto, and whether a vehicle inspection or documentation is needed, it might take up to one to two days before insurance approval,” says Kunal Varma, Founder and CEO, Freo. 

There are two types of approvals in motor claims:

Surveyor Approval: “This is the initial approval provided by the surveyor, indicating which parts are to be approved and the amount to be sanctioned. If the claim amount is less than Rs 50,000, surveyor approval is typically granted within 24 hours. If the claim amount exceeds Rs 50,000, it is approved within two to three working days after the claim intimation. Surveyor approval is not the final approval,” says Paras Pasricha, head of motor insurance, Policybazaar. 

Insurance Company Approval: This approval happens at the end, when the insured vehicle has been repaired. The insurance company approves the surveyor’s report submitted at the time of the accident. Based on this approval, the claim amount is settled.

Turnaround Time (TAT) For Insurance Company Approval:

In Non-Cashless Cases: 15–20 working days

In Cashless Cases: Five to six working days

Red Flags That Influence Claim Rejection:

• Incorrect documentation (such as incorrect NCB, make/model/variant on the policy document, and RC)

• Missing documents (such as the previous year's policy to verify ownership, NCB, and CNG endorsement)

• Incorrect details were filled in the proposal form while purchasing the policy

• Presence of challans on the driving license (claims may be held in such cases)

• The customer repairs the car without waiting for the surveyor and then submits the bills

• Pre-Existing Damages: “As per the insurer, the customer should file the claim within seven days of the accident. If the claim is delayed beyond this TAT, the insurer may reject it. (This is why insurers offer the feature of multiple claims under the policy),” says Pasricha.

These red flags may give rise to the insurer requesting a physical inspection or requiring other information before approving the policy.