Categorized | Car Insurance

why vehicle inspection for insurance is necessary and what is its process?

Vehicle inspection is a process to verify and document the existence of a motor vehicle, as well as its condition and existing options and accessories. Vehicle inspection works as an effective deterrent against those intending to make dishonest financial gains by committing vehicle insurance fraud. 

The relative ease with which vehicle insurance fraud can be carried out has led to a major misuse of vehicle insurance policies. Unfortunately, this leads to severe consequences for the honest customers, as the cost of such false claims is not borne by the insurance companies but indirectly transferred to the consumers in form of higher premiums over time. 

Vehicle Inspections is an effective deterrent for various types of frauds like:

•Filing a Claim for nonexistent vehicles 

•Claiming for damage that existed prior to the purchase of new insurance policy

•Getting an insurance for a vehicle which has been salvaged

•False theft claims

Exemption from Vehicle Inspections

If you are buying car insurance in India for just third party coverage, then an inspection is not required. An inspection may also not be required in case you are renewing your Policy without break in between.
 
When a Vehicle Inspection is required

A vehicle inspection is necessary when you are buying a new policy. Besides, your insurance company may require a vehicle inspection at other times such as -

1.When you are renewing your policy and there is a break in the insurance policy, means you have not been able to renew your policy in the stipulated time leading to a Lapse of coverage. 

2.You may also need a vehicle inspection if there is a change in type of policy or change in the policy ownership or in case you have added new accessories / equipment in your car and you would like them to be covered. 

3.Vehicle inspection is also required at the time when you seek a claim for repair of damage that has accidentally happened to your car. In such a case, vehicle inspection is done by an authorized surveyor or the insurance company itself to appraise the approximate cost of repair and also gauge if the claim is genuine.

A few insurance companies in India provide free vehicle inspection done at your doorstep, while the others would get it done at your cost. Vehicle inspection may be done by the company official or an authorized agent.

Vehicle Inspection Process

The vehicle inspection process involves physical examination of the condition of your automobile. This is done to ensure two things – your vehicle actually exists or not and the other is to ensure that you do not make claims for damages that are pre-existing. 

As part of the process, the company official may need to note the vehicle registration number, chassis number and take a photograph of your vehicle from different angles as a proof of your vehicle condition. If there are any existing damages/dents, those will be captured separately.

A vehicle inspection will also ensure that all the accessories that you claim to have are actually installed. Like if you have recently installed an anti-theft device (certified by AARI), for which you want to claim a discount on your insurance policy Premium (allowed by motor insurance act), a vehicle inspection could be done to verify the same.

So, now if you are buying a vehicle insurance policy and your insurance provider asks you for vehicle inspection, you know it is for your own good only.