The motor vehicle is considered as one of the biggest assets they own. Car insurance policy ensures to protect your valuable vehicle against all odds like collision, robbery, damage due to accidents, natural calamities, and third-party claims.
Rejection of car insurance claims is frequent; these rejections are due to policyholder mistakes or negligence because the insurer needs a genuine reason to reject your insurance policy. Know the cases where your car insurance claim gets rejected, keenly note the required documents and procedures to avoid car insurance claim being rejected.
Some of the reasons mentioned below why your car insurance policy gets rejected by insurance companies:
Influence of Alcohol:
Insurer rejects your claim in drunk and drives case if the vehicle is involved in a car accident where a driver is under the influence of alcohol. Here, the insurer rejects the claim, the driver's primary safety precaution is to avoid alcohol while driving.
Drunk driving is a legal offense and it will lead you to criminal processing. Driving under the influence of alcohol, driving without a valid license, etc. is not covered under the insurance plan. Any third-party insurance policy will not cover the damages or losses that occurred as a result of a direct violation of traffic rules.
Fraudulent Claim:
Filing for any claims should adhere to the right documents to evade any legal consequences of fraud. Guilty of fraudulent claim not only lapse your policy but is also liable personally.
The best car insurance company investigates the claim before proceeding on claim settlement. They check all the claims information that you provided about your car damage. So please avoid false claims it leads to legal consequences of fraud.
Negligence led to the Theft:
Loss or damage to the vehicle due to the negligence of the policyholder, an insurer will reject your policy on grounds of negligence. You should take proper precautions to safeguard your vehicle against all odds, this is the primary duty of a policyholder.
Any type of negligence that gives to the events of consequential losses will not be covered under an insurance policy. The best insurance company also will not cover consequential losses to a car. The claim arising in such a situation will not be paid.
Modification:
Making modifications to your vehicle by enhancing engine power, wheel alignment and vehicle look without any prior intimation to the insurer. Your insurance policy is void and you can’t claim damages if any. When you took the motor insurance, you made some statements on car condition like engine capacity, alloys, etc.
This is what the policy will cover for you. But after some time, you got an upgrade in the car engine and did not inform the same to the insurance company. So, if you meet an accident, the insurance company has the complete right to reject the claim on the grounds of unnoticed car modifications.
Using Private Vehicles as Commercial Purposes:
The insurance claim is rejected if you use a private vehicle for commercial use. Using a private vehicle as a cab or goods carrier will lapse your policy, a commercial vehicle has a separate insurance policy to claim for damages legally.
Renew Car Insurance On Time:
Car insurance renewal is plays important role in claim settlement. You cannot raise a claim if your vehicle insurance policy is expired or lapsed. So you have to renew your car insurance on time to get claims. The claim amount depends on the premium you pay for car insurance.
Delay in Claim Report:
There is a deadline for claim report submission. If you raise a claim about the accident and associated losses after the time they have given. It also may lead to disapproval of the claim. If by any chance, you take more than the predefined time to make a claim intimation, there are chances of the insurance company your claim will be rejected.
Transfer Insurance Copy For A Used Vehicle:
Transfer insurance policy in your name for a used vehicle, if not, your claim will be rejected.
Driving Without a Valid License:
In case of an accident made by someone driving your vehicle without any valid license, a policyholder cannot claim any damages. Allow driving your vehicle only if they hold a valid license.
Follow Claim Process:
Follow the claim process to avoid rejection of your claim. The claim process is ideal for every general insurance company limited. So please read the terms and conditions and claim process and should be followed carefully.
Damage Due to Mechanical Breakdown:
Damage due to internal malfunction cannot attract insurance claims. An insurance claim is to protect you and your vehicle from external damages, if any, vehicle mechanical malfunction is not covered by an insurance claim.
Relying a lapsed Policy:
Watch out for this, as one missed premium payment can jeopardize your whole coverage. It is extremely important that you pay premium on time and also renew your policy timely. Opt for sms or email reminders to keep you on top of things.
Not Reporting About the Accident on Time:
If you delay reporting an accident to your car, your insurance claim may be rejected. Normally, insurers allow a 48 hours window for accident to be reported. Some insurers may allow some relaxation in the time frame during which accidents can be reported, but beyond a certain time limit, needless to say it may lead to rejection.
Not Informing About CNG/LPG Kit Fitted in Your Car:
While you want more from your car in the form of higher mileage by installing a CNG/LPG kit, it’s your responsibility to inform or declare this to your insurance company. The insurance company makes a note of the changes to your car when you buy/renew car insurance, and have it covered under your insurance policy. However, by not declaring the additional kit, you stand a chance for your claim to be rejected by the insurer.
Driving Outside the Specified Geographical Area:
Your claim can be denied if your accident occurs outside the geographical area defined by your insurance policy. Hence, read your insurance policy terms and conditions carefully to understand the specified geographical limits.
Tips to Prevent Car Insurance Claim Rejection:
Now that you know the reasons for claim rejection, let’s learn how to claim car insurance successfully.
- Inform Your Insurance Company: The first step is to inform your insurance company about the incident. You can inform them through a phone call, email, or a mobile app.
- Report to the Police and File an FIR: An FIR is a must in case of theft or major accident, especially important in case of third-party accidents resulting in death or bodily injuries. File an FIR in the case of theft of your car immediately.
- Provide All Relevant Documents to Your Insurance Company: Ensure to send all relevant documents to your insurer without any delay. Your insurance company will begin the process of claim only after receiving all relevant documents. Documents such as Registration Certificate, Driving License, claim form, etc. are usually required while raising a claim.
- Don’t Repair without Informing: Last but not least, do not send your car for repairs without getting a go-ahead from your insurer. This is because, after an accident, your car will be surveyed for the extent of damage it has suffered. Your insurer will give an approximate estimate of the expenses related to repairing this damage. Your claim can be rejected if you get your car repaired without a survey.
- Have Proof of Damages: It’s better to take pictures of damages to your car as well as the third-party’s vehicle if a third-party is involved in the incident. While your insurance company will send an authorized person to inspect the damages, it’s always advisable to gather proof so it makes the claim process easier.
- Don’t Increase Consequential Loss: Consequential loss occurs when you try to run the car after an accident. This is a major loss in terms of damage. For example, if your car is submerged in water and you try to start the engine. The car had already suffered water damage. But because you tried to start the car, additional water has affected the engine due to which the hydrostatic lock got activated. In this example, your insurer will pay only to cover the initial damage caused by the water and not the expenses related to the hydrostatic lock. This consequential loss claim will be rejected.
- Read the Terms and Conditions of Your Insurance Policy: Upon receiving your policy document, it’s wise to read through the terms and conditions of the policy to know what is included and what is not. This will help you understand what damages are not included if a situation arises to claim for damages.
Conclusion:
Getting a car repaired can be very costly. The last thing you would want after a car accident is to face rejection of your car insurance claims. If you keep the above-mentioned reasons and preventive measures for denial of car insurance claims in mind, any loss or damages to your four wheeler will be covered by your motor insurance company.
Car repair can turn out to be a very expensive affair for you. And the last thing that you would want to happen would be to face rejection of your insurance claim. If you would remember a few of the aforementioned points in mind, you can save yourself from the horror of facing claim rejection.
Visit PolicyBachat and get the best car insurance quotes from the top general insurance companies and you can also check the details on risk factors terms conditions and please read the sales brochure carefully before concluding a sale. Need Help? Call PolicyBachat at 1800-123-4006 or 1800-123-4003 and our insurance specialist will be there to assist you.