Insurers reward policyholders for not making claims, by giving them a discount on the 'own damage' premium of up to 50 per cent, on a reducing balance basis, in future years.

(See table: no claim Bonus). However, if you make a claim, you have to start all over again, from year 2 and also pay a mark-up in premium equivalent the discount you were earning. In fact, because of this 'back to square one' clause, it sometimes makes financial sense not to raise small claims. Look at it in a broader sense. Ideally, whenever your vehicle is damaged, get an estimate for the repairs, if the no-claim bonus you stand to forfeit in the forthcoming years exceeds the estimate, it makes sense not a raise a claim and instead pay for the damage yourself.
Savings from No-claim Bonus

If you are carrying forward a no-claim bonus on any vehicle, you can get it transferred to a new vehicle of the same type (four-wheeler to four-wheeler, two-wheeler to two-wheeler). This way, you can slash between 20 per cent and 50 per cent on the first premium payable on your new vehicle (when it is the highest). Say, you buy a new Honda City, costing Rs 7.7 lakh. In normal circumstances, the own damage premium payable towards its insurance for the first year would be Rs 25,279. However, if you were to transfer the 50 per cent no-claim bonus (the best-case scenario) on your old car to the Honda City, you would pay Rs 12,639 as own damage premium in the first year- a 50 per cent saving.

The only condition to avail of this discount is that you have to sell off your old vehicle. Even if you wish to retain your old vehicle, you can get around this clause by gifting the old vehicle to a family member. In this case, your family's saving on premium will be marginally less, as the old vehicle won't be entitled to any no-claim bonus on renewal next year and will have to start from scratch on the no-claim bonus schedule. Even so, the premium saving on the new car will far outweigh the higher outgo on the old car, resulting in a net gain.

Members of recognised automobile associations in India are entitled to a discount of 5 per cent on the premium payable, subject to a maximum of Rs 200 for cars and Rs 50 for scooters.

Vehicles fitted with anti-theft devices approved by the Automobile Research Association of India get a 2.5 per cent discount on the own damage premium, subject to a maximum of Rs 500.

Claims up to Rs 500 for four-wheelers and Rs 300 for two-wheelers can be raised without calling for a surveyor.

You can claim compensation towards towing the vehicle to a workshop, of up to Rs 2,500 for four-wheelers and Rs 1,500 for two-wheelers.

If you have a sidecar attached to your two-wheeler, ask your insurer for a discount on the premium payable. The common perception is that a sidecar lends more stability to a two-wheeler, reducing the risk of accident.

The surveyor will assess the loss and recommend a claim amount to the insurer, who will pay that sum to you, if you feel short-changed by the claim amount, you can ask your insurer to appoint another surveyor. In case you're still not satisfied, you can file a complaint with the IRDA

If you have signed up for cashless insurance, all you have to do is take your vehicle to a service center authorized to settle a claim. The service center will follow up with your insurer, and you'll only have to pay the depreciated portion of the claim.

The paperwork is less and procedures are fewer in theft cases, file a police complaint and inform the insurer, if your vehicle isn't found within 90 days, ask the police to issue you a 'non-traceable report' - basically an undertaking by them that they are yet to find your vehicle-and submit it to the insurer will wait for 90 days from the date of theft for the vehicle to be found, failing which the insurer will start the claims process.