A discharge voucher is more than a payment receipt.
Once signed, it usually closes your claim permanently and makes asking for more money very difficult.
Before signing, always verify:
The amount matches the surveyor’s assessment
All deductions are explained in writing
You’ve reviewed the full surveyor report
No pressure or urgency tactics are being used
Important: As per IRDAI guidelines, insurers should not withhold payment of an admitted claim solely because you have not signed a discharge voucher.
What Is a Discharge Voucher in Insurance Claims?
A discharge voucher is a document issued by the insurer stating that:
You have received ₹[amount] as claim settlement
The payment is treated as full and final settlement
The insurer is released from further liability for that incident
In simple terms, it acts as a final receipt combined with a legal closure of the claim.
What You Agree to When You Sign a Discharge Voucher
1. “Full and Final Settlement”
After signing, you generally cannot ask for additional payment even if:
Repair costs turn out higher than estimated
Additional damage is discovered later
You notice calculation or assessment errors
2. “Release from Liability”
You significantly weaken your ability to:
Raise a complaint before the Insurance Ombudsman
Approach the Consumer Court
Legally challenge the settlement amount
Important nuance:
IRDAI guidelines (2015) allow disputes even after signing in limited circumstances (such as coercion, fraud, or clear calculation errors), but the process becomes harder and success rates drop.
Should You Sign the Discharge Voucher? (Decision Guide)
✅ Generally Safe to Sign If ALL Are True
The amount broadly matches expectations (±10%)
You have received and reviewed the complete surveyor report
All deductions are clearly explained in writing
Repairs are complete and satisfactory
There are no unresolved disputes
You were given reasonable time to review (2–3 days)
🚫 Do NOT Sign If Any of These Apply
Settlement is significantly lower than expected (20%+ gap)
Surveyor report has not been shared
You are being pressured to “sign immediately”
Repairs are incomplete or of poor quality
Deductions are unexplained or unclear
Something feels materially wrong
Red Flags You Should Never Ignore
| Warning Sign | What It Indicates | What You Should Do |
|---|---|---|
| “Sign now or offer expires” | Pressure tactic | Refuse. There is no legal deadline |
| Amount blank or incorrect | Incomplete document | Do not sign |
| No itemized breakdown | Hidden deductions | Ask for written details |
| Garage won’t release vehicle | Illegal coercion | Escalate immediately |
| Estimate ₹80,000 → Settlement ₹45,000 | Likely assessment issue | Question every deduction |
What Happens If You Refuse to Sign?
Myth vs Reality
| What You’re Told | What’s Actually True |
|---|---|
| “We can’t pay without signature” | IRDAI guidelines say payment should not be withheld |
| “Offer will be withdrawn” | Admitted claims cannot be arbitrarily withdrawn |
| “Your claim will be rejected” | Refusal to sign ≠ claim rejection |
| “This is mandatory” | Common practice ≠ legal requirement |
Your Legal Protection (IRDAI Guidance)
IRDAI has clarified that once liability and claim amount are admitted, insurers should not withhold payment merely due to non-signing of a discharge voucher.
Withholding payment in such cases may amount to deficiency in service.
What To Do Right Now
Step 1: Verify the Math (10 Minutes)
If the difference is more than ~15% and unexplained, pause before signing.
Step 2: Check Depreciation (If Applicable)
Indicative IRDAI depreciation norms:
Rubber / Plastic parts: 50%
Metal parts: 0–40% (age-based)
Paint: 50%
Battery: 50% (after 6 months)
If you have Zero Depreciation cover, applicable depreciation should generally be nil (subject to policy terms).
Step 3: Choose the Right Action
Option A: Amount Is Fair → Sign
Keep a signed copy for records
Confirm bank details before submission
Ask for written payment timeline
Option B: Need Clarification → Send This Email
Subject: Clarification Required – Claim [Number]
I have received the discharge voucher but need clarification on:
Difference between garage estimate (₹X) and settlement (₹Y)
Complete surveyor report (not yet provided)
Detailed depreciation and deduction breakup
Kindly share the above within 3 days so I can proceed.
Regards,
[Your Name]
[Policy / Claim Number]
Option C: Amount Is Too Low → Refuse (Politely)
Subject: Unable to Sign Discharge Voucher – Claim [Number]
I am unable to sign the discharge voucher as the settlement amount (₹X) is significantly lower than the assessed damage (₹Y).
As per IRDAI guidance, discharge vouchers should not be used to withhold payment of admitted claims.
Please provide detailed justification or revise the settlement.
Regards,
[Your Name]
Emergency Situations
“The garage won’t release my car unless I sign”
Detaining a repaired vehicle pending signature may amount to illegal detention.
Send this immediately (email / WhatsApp):
The vehicle must be released as repairs are complete and payment is approved.
I will review the discharge voucher and respond within 2 working days.
If unresolved:
Call the insurer directly
Escalate via email
File a police complaint if necessary
A signature obtained under coercion can be challenged later.
“I Need the Money Urgently — Should I Just Sign?”
If unavoidable, you may sign “under protest”.
Write above your signature:
Signed under protest. I reserve my right to dispute the settlement amount.
Also send an email the same day explaining why you believe the settlement is inadequate.
This does not guarantee success, but preserves limited dispute rights.
Already Signed? Can You Still Dispute?
Yes — but it’s difficult.
Possible grounds:
Coercion or pressure
Fraud or misrepresentation
Clear calculation errors
Promises made but not honored
Typical route:
Legal notice to insurer
Insurance Ombudsman (free, up to ₹50 lakh)
Consumer Court (if unresolved)
Success depends on evidence, not dissatisfaction alone.
Common Mistakes to Avoid
| Mistake | Better Approach |
|---|---|
| Signing without reading | Review calmly for 2–3 days |
| Not keeping a copy | Scan or photograph before signing |
| Trusting verbal promises | Get everything in writing |
| Ignoring small gaps | Question every unexplained deduction |
| Not checking bank details | Verify account & IFSC carefully |
FAQs (Quick Answers)
Is signing mandatory to get paid?
No. IRDAI guidance discourages withholding admitted claim payments solely due to non-signing.
Can I negotiate after signing?
Very difficult. Always negotiate before signing.
What if I find more damage later?
Hard to claim once full and final settlement is accepted.
How long can I take to review?
There’s no fixed legal limit. 2–7 days is generally reasonable.
Should I hire a lawyer?
For claims under ₹1 lakh, usually not necessary. For higher disputed amounts, it may help.
Key Takeaways
A discharge voucher usually closes your claim permanently
Signing is easy; disputing later is hard
Pressure tactics are a red flag
Payment should not be withheld merely due to non-signing
Always verify calculations and keep records
Need Help Reviewing a Discharge Voucher?
If you’re unsure whether a settlement is fair, an objective review can help identify:
Calculation errors
Excessive depreciation
Missing or unjustified deductions
This is about clarity, not guaranteed outcomes.
Disclaimer: This article is for general informational purposes based on common insurance practices and IRDAI guidelines. It is not legal advice. Outcomes depend on individual policy terms and evidence.
