Motor Claim Short-settled? Three Steps to Push Back

Short settlement is when an insurer offers significantly less than the actual loss assessed in your claim — often without a clear written justification.

Step 1: Get the surveyor's report

Under IRDAI rules, the surveyor's report is a discoverable document. You are entitled to a copy. Request it formally in writing.

Step 2: Reconcile the deductions

Most short settlements come from three deduction categories: - **Depreciation** — often applied to parts that should not depreciate (plastic, glass, paintwork). - **Salvage** — assumed value that may be inflated. - **Betterment** — clauses applied without basis.

Step 3: File a structured representation

A simple email saying "I disagree" is not enough. The representation must cite the surveyor's specific line items, the policy wording on each, and request a re-calculation.

If the insurer does not respond satisfactorily within 30 days, the matter can be escalated to the Insurance Ombudsman free of cost.