Purchasing a car insurance policy is a moral obligation and legally mandatory. It helps manage expenses related to your car repairs and other third-party liabilities by reducing your financial burden.

When purchasing a car insurance plan in India, one of the most important concerns is the car insurance claims limit. As car insurance claims are the sole purpose of buying a car insurance policy, it is essential to understand the related terms and conditions to ensure and maximise the benefits. So, let us find out if there is a claim limit for car insurance.

Before we get started, let us have a brief understanding about car insurance.

 What Is A Car Insurance Policy?

A car insurance policy is a type of insurance plan that provides financial coverage for your car in the case of losses due to uncertainties such as accidents or natural or man-made disasters. In addition, it covers third-party liabilities incurred due to your insured car.

The coverage will depend on the type of insurance plan, add-on covers chosen, etc. For instance, car insurance providers such as Tata AIG offer third-party, standalone OD, and comprehensive car insurance policies with 12 different add-on options such as No Claim Bonus protection, zero depreciation or bumper-to-bumper insurance, engine secure, etc. You can decide on the car insurance plan based on your needs and affordability.

 Car Insurance Claims Limit

Generally, there are no limits on the number of claims that can be initiated on a car insurance plan. It means you can make a car insurance claim as often as needed. However, insurance providers can have certain restrictions on the number of claims in case of specific scenarios, such as the zero depreciation add-on cover. Therefore, it is important to understand the individual policy terms and conditions before purchasing a car insurance policy.

And it is also essential to know that raising too many claims can have certain repercussions that can affect the applicable four-wheeler insurance benefits.

 Consequences of Making Multiple Car Insurance Claims

  • Affects zero depreciation claims – Zero depreciation, also called bumper-to-bumper car insurance, is an add-on cover that enables the reimbursement benefit for the deducted cost of depreciation in car insurance claims. Therefore, you will receive the complete sum assured without deducting the applicable depreciation amount.

However, the claims applicable with the zero depreciation cover will be restricted, and the insurance claim limit will vary between the insurance providers.

  • Affects No Claim Bonus (NCB) – No Claim Bonus is a benefit provided in a four-wheeler insurance policy that will reduce the premium by a certain percentage if you have not made any claims during the previous year. The benefit can go up to 50% for five claim-free years. Therefore, making claims during a policy year can affect the no claim bonus for the following year.
  • Higher premium rates – When you file multiple claims in a year, it will mean that you pose a higher risk to the insurance provider. Therefore, they can increase the premium rate on the car insurance premium renewal for the next year owing to the coverage they have to provide.

 How To Decide Whether A Claim Is Required?

While there is no car insurance claims number limit, we have seen that it can affect some of your benefits. Therefore, you need to consider the different factors and decide whether or not to make a car insurance claim.

Here are a few factors that you need to consider:

  1. Minor damages – When the damages to your car are minor such as scratches, small dents, etc., it is not advisable to initiate a car insurance claim as it will affect your NCB.
  2. Less than or equal to deductible – Deductible is the component or the amount that you need to pay from out of your expenses in the event of a claim, and the remaining amount will be paid by the insurer. If the expense is less than or equal to the deductible, it is not worth initiating a claim.
  3. NCB is higher than the claim benefit – If the applicable NCB is higher than the claim settlement benefit, you can consider not raising a claim as it can affect the NCB.

There is no number of claims that can mean too many claims. You can consider raising a claim request in scenarios such as when the damages are severe, the claim amount is too high to afford, third-party liabilities, etc. However, it is highly recommended to consider the different factors and the applicable benefits before making a claim.


There is no limit or restriction on the number of claims that can be raised during the policy term. However, raising too many claims can affect your four-wheeler insurance benefits, such as the NCB, availing of zero depreciation cover benefits, etc. Therefore, it is important to avoid making a car insurance claim when there are minor damages, and the expenses are lesser than the deductibles, etc. Availing of claim benefits is the sole purpose of having a car insurance plan, but use it wisely to ensure long-term benefits!