Car Insurance Policy | Car Insurance Policy : Why does your car insurance claim get rejected? Why is your car insurance claim rejected?
Why is there a problem in car insurance claim
- It is necessary to renew your policy every year.
- The incident has to be reported for the insurance claim within the stipulated time frame.
- Driving without a valid driving license is against the law.
If you have a vehicle then it is very important for you to buy a motor insurance (insurance) policy. Car insurance not only covers the expenses related to any kind of accident, theft and damage but it also protects you financially. When you take out a car insurance policy, make sure you are aware of the other terms and conditions including the terms of claim rejection.
When you make an insurance claim from the insurance company, it can either be granted, withheld until you provide additional documents, or it can be rejected. It can be frustrating that you apply for an insurance claim for your damaged car and it is not settled immediately. Non-acceptance of a claim can also be financially stressful as in such a situation you have to pay out of your own pocket to recover the damages. To avoid a claim being rejected, it is important to know the reasons why it is rejected. Let’s look at some of the reasons why an insurance company might reject your car insurance claim.
end of policy term
For continued coverage, it is necessary to renew your policy every year. You can claim insurance only if your insurance coverage is in force. If your car insurance policy has expired and you have not renewed it, the insurance company will reject your claim on the grounds that your insurance has expired.
Car modification and accessories
When you renew your car insurance policy, it covers the components covered in the previous year’s policy. Keep in mind that if you want to cover additional accessories in the insurance policy, you should inform the insurance company before renewing the policy. Additional accessories will be included in the new policy only after the insurance company inspects it and collects the required premium from you. If you do not inform your insurance company about the additional accessories, your claim for the damaged accessories will be rejected.
reporting the incident late
You have to report the incident for the insurance claim within a certain time frame. If you submit the claim late or if you do not provide the required documents to the insurance company within the given time limit, your claim may be rejected.
driving without a driving license
Driving without a valid driving license in India is against the law, and you can be fined for it. If your car gets into an accident and it is found that you were driving the car without a driving license / valid driving license, the insurance company will reject your claim.
If the vehicle’s tires are worn out and the paint is discolored, such a condition is described as ‘breakdown’. These are not considered for claims by the insurance companies. You can claim insurance only for pre-defined situations such as theft or accidental damage.
Driving under the influence of alcohol is a legal offense in India. If you are caught while driving under the influence of alcohol, you could face criminal charges. If you have an accident while driving while intoxicated and a third party files a claim against you, your insurance company will not consider your claim because you were intoxicated while driving.
If the policy is not in your name
When you buy a used car, important documents like registration certificate are transferred in your name. The insurance policy should also be transferred in your name to claim the insurance in case of need. Any negligence in doing so may lead to rejection of the claim.
commercial use of personal vehicle
Your insurance claim may get rejected if you are using your personal vehicle for commercial purposes. Commercial vehicle insurance rules vary.
Now, that you know the conditions under which your car insurance claim can be rejected, keep the above mentioned points in mind and take all necessary measures to ensure that your claim is not rejected by the insurance company. .
(The author of this article is Adil Shetty, CEO, BankBazaar.com)
(Disclaimer: This information is being given on the basis of expert reports. Markets are subject to risks, so take your own advice before investing.) (This article is written for informational purposes only. It is for investment purposes only.) should not be construed as financial or other advice)
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