How Many Days Does It Take for Motor Insurance Approval in India?

Obtaining immediate approval for motor insurance in India serves both legal purposes and provides financial protection in the event of traffic accidents or theft. While the Motor Vehicles Act of 1988 requires everyone to drive a vehicle with proper insurance, ignorance of the law is quite common. One of the fastest ways to obtain insurance is through online channels.

Digitalisation has revolutionised the buying process and claims submission for motor insurance, allowing both procedures to operate at unprecedented speed and convenience. Today's insurance expeditions rely heavily on web portals with mobile applications, as well as automated verification networks, quick Know Your Customer (KYC) processes, and instant policy generation, thanks to their rapid processing capabilities.

This blog presents data on motor insurance policies and claims in India, while exploring acceleration practices for both systems, as well as factors that impact issuing and settlement times.

Understanding Motor Insurance Approval

The motor insurance approval consists of two primary components, one of which is policy issuance and the other is claim settlement. These two components can help an individual understand the approval of an insurance policy. Here is a small difference between them:

The role of the Insurance Regulatory and Development Authority of India (IRDAI) in motor insurance is extensive. It establishes guidelines for insurers, oversees the policy timeline, manages the claims process, and ensures customer protection standards are maintained.

Timeframe for New Policy Issuance

The time required to activate new motor insurance coverage depends on whether the process is completed offline or online.

The online purchase of motor insurance is fast and efficient, facilitated by automated systems. Once you pay and send your documents, you get your digital policy within a short period of 60 minutes or less. The AI-driven underwriting system creates new motor insurance policies in record time, requiring minimal human interaction.

The physical buying process involves handling paper forms and conducting active document checks while waiting for an insurance provider to approve everything. The complete process takes 15 working days longer to finish.

The insurer needs to inspect your used car when you purchase insurance or when you wish to renew an expired policy. The policy issuance process takes an additional one to two days because of the surveyor's availability for vehicle inspections.

Users can choose digital platforms when they need their insurance policy to start quickly.

Timeframe for Claim Approvals

Approval processes become more challenging since they vary for each type of claim submission and the accompanying documents. This is the ordinary path for claims processing:

Intimation of the claim to the insurer.

• The insured or a hired surveyor completes an assessment for the insurer.
• Submission of required documents (e.g., claim form, FIR copy, repair bills, etc.).
• The insurance company evaluates and pays out compensation to policyholders.

Insurance companies based in India must finalise claims within 30 working days after gathering all required paperwork as per IRDAI rules. Professional insurance companies handle normal damage and cashless garage fix claims in just 7 to 10 business days.

When an insured chooses cashless repair at our garage, the insurer pays for the service more quickly compared to reimbursement claims that require post-work paperwork.

Your claim settlement may take thirty days or longer to complete, depending on the extent of police work or legal processing.

When the policyholder and insurer share information promptly, this helps speed up the processing time.

Tips to Expedite Motor Insurance Approvals

You can receive motor insurance quickly with helpful steps. Here are some proven tips:

Taking action throughout the process speeds up your approval and lowers the potential for time loss.

FAQs

• What is the online process time for obtaining a motor insurance policy?

With no more than a few minutes needed to process your order, you can view your digital policy.

• What policies does the IRDAI set for motor insurance settlements?

The Insurance Regulatory and Development Authority of India directs insurers to finalise claims within 30 days after complete document submission.

• Policies take additional time to settle when necessary investigations and document checks are conducted.

Insurance claims related to theft, total loss, and third-party incidents require additional examination to process.

• Is cashless claim payment faster than receiving reimbursement payments?

When an insurer handles direct payments to the auto repair shop, the claim processing occurs more efficiently.

• How can I view my claim status online?

Most insurers allow customers to check the progress of their claims through their online platforms or smartphone applications.