9 reasons why your car insurance claims could get rejected
If you own a car, you will need to purchase car insurance for it. Car insurance is mandatory in India and you can purchase it online or offline. A car insurance policy will help you cover the expenses in case of car damage or injury to other parties because of accidents. The benefits you receive will depend on whether you purchase mandatory third-party car insurance or comprehensive car insurance. The latter will provide protection from most of the damages to your car.
Most car insurance policy will protect you from losses arising out of:
Â· Natural calamities such as floods, cyclones, etc.
Â· Damages from a car accident involving only your car
Â· Damages from an accident with any third-party which may lead to bodily injury or car damage
Â· Theft of your car
Â· Any accidental fire in your car
Â· Accidents that lead to death or loss of life
When you make a claim for a damage to your car and you donâ€™t get the money, it can be very frustrating. To avoid such a situation, you should understand the reasons for car insurance claims rejection. Here are some of the popular reasons why car insurance claims are rejected.
1. Driver related problems
Driving under the influence of alcohol or driving without a proper legal driving license are the two most common reasons why motor insurance claims get rejected. Both of them are against the law and, hence, your claim cannot be processed by the insurance company. In such cases, the insurance company has the right to reject your claim at the outset.
2. Non-renewal of policy
You will need to renew your car insurance policy every year before the expiry of the policy. If the tenure of your policy is over, then, you cannot make claims under the policy. If you make a claim to your insurance provider with an expired policy your claim will get rejected.
3. Delay in reporting the accident
If your car has been involved in an accident, you will need to report it to your insurance provider as soon as possible. There is a deadline before which you should intimate the insurance company about the accident and associated damages. If you take too long to report the incident or make a claim, your claim might get rejected. You need to provide your insurance company with the right documentation within the provided time-frame. If your car has been damaged in an accident, remember to first report it to your insurance company before you give it for repairs.
4. Using a modified car without intimation
When you take a car insurance policy, you will need to make declarations as to the specifications of your car such as the engine capacity, alloy wheels, etc. The declaration will help the insurance company understand what will need to be included in the policy. Any car insurance policy automatically covers the components declared in the previous policy when it is renewed.
Now, letâ€™s say you got an upgrade in the carâ€™s engine and did not inform your insurance company about it. If you meet with an accident, your claim can get rejected.
So, if you want the insurance company to cover additional accessories in your car insurance policy, you must inform your insurer about it. Your insurance company will provide protection for these components after checking your car. Note that you might need to pay an additional premium.
5. Fraudulent claim
Reporting of wrong facts or making claims that are false can lead to rejection of your claims. You need to make sure that you provide the true facts on the accident or damage to your car. This is because the insurance company will check the damages to the car before they pay the money. Any false information can lead to claim rejections.
6. Violation of policy conditions
Every car insurance policy comes with its own terms and conditions. You need to follow the policy terms at all times. For instance, if you insure your car as a private vehicle and you use it for commercial purposes, your insurance claims will get rejected.
7. Not owning the car that you drive
To make claims for damages on a car, you will need to own the car. If you are driving a car owned by someone else that has a policy in your name, your claim will get rejected because there was no ownership. For instance, if the car is in your spouseâ€™s name, the policy cannot be in your name. It has to be in your spouseâ€™s name.
8. Intentional damage
When you purposely break or damage your car, the insurance company will not cover it.
9. Non-Disclosure of facts
Hiding facts from the insurance company is considered bad. If the insurance company knows that you hid facts regarding the accident or damage to your car, it can reject your claims. For instance, if you do not tell the insurer that you were drunk while driving, your claim will be rejected.
Other reasons for car insurance rejection include driving out of specified geographical limits and wear and tear of the car. This means that if the accident took place outside the geographical limits defined by the insurance company, the claim will get rejected. Your car insurance policy will not protect you against any mishap outside of country boundaries. Claims for damages due to regular wear and tear of the car such as peeling of paint, degradation of tires, etc. will be rejected.
Making a claim on your car insurance policy is easy. However, you need to take into account the above-mentioned reasons so that your claim is approved by the insurance company.