A majority of Indian households today own a car. It’s the ideal family vehicle and enables us to enjoy long road trips across the country. But, we never know what’s lurking around the next corner. An accident could lead to hefty repair bills. Thankfully, having car insurance in India is mandatory. If you have a comprehensive policy, even your own damage and personal liability claims are covered. Sadly, there’s a possibility that some claims might get rejected. If you’ve faced this problem in the past, we’re here to help with some clarifications. Let’s take a look at the most common reasons why car insurance claims get rejected:
1. Non-Disclosure or Misrepresentation of Facts
Whenever you deal with your car insurance provider, you have to be 100% honest. There’s no beating around the bush or making things seem different. When you buy your policy, you have to be forthcoming about the condition of your car and your previous insurance history. If you make false claims at this stage and the car insurance company finds out later, they could cancel your policy. Some individuals may lie or tweak some information while filing their claim application. If your insurance provider finds out about it, you could prejudice your claim settlement. Very often, policyholders are not honest about who was driving the vehicle and the date and time of the accident. In some cases, they may try to misrepresent the extent of the injury.
2. Loss Is Outside the Policy Scope
Every four-wheeler insurance policy will come with some terms and conditions. Your policy will list what losses are covered. Most motor car insurance companies will not settle claims for losses due to wear and tear or negligence. Some policyholders attempt to claim for damages sustained after an accident or incident due to their negligence. These kinds of claims will end in disappointment. Remember, every type of policy has various inclusions and exclusions. If you have only purchased a third-party liability policy, you cannot make own damage claims. Once you buy a policy, make sure you go through all the fine print. Take a look at what’s not covered. A little work at the start will avoid confusion and claim rejection later on.
3. Violation of Policy Conditions
Your car insurance policy is like a contract between you and your four-wheeler insurance company. So, policyholders must fulfil certain conditions to enjoy the protection promised by the policy. If an individual is operating the vehicle without a valid license, required under the Motor Vehicles Act, 1988, your claim will get rejected. Similarly, individuals driving under the influence of alcohol will not be eligible to make valid claims. If the policyholder violates any of the conditions, the car insurance company will reject subsequent claims.
4. Missed an Insurance Renewal
Your car insurance policy, like any other insurance policy, must be renewed every year. If you forget to pay your premium on time, your policy will lapse. Any claim you make after the policy expires will automatically get rejected. You will have to bear all the expenses out of your own pocket. So, make sure you renew your insurance on time to avoid your claim getting rejected.
5. Delayed Claim Application
After an incident occurs, you must file your claim application as soon as possible. Unreasonable and unjustified delays could lead to your claim request getting rejected.
Having your claim request rejected is heartbreaking, especially if you were involved in an accident. So, you must get your information right and file the claim within the stipulated time. By following the rules and only filing for covered losses, you can enjoy a smooth and easy claims process!
Can you be rejected for car insurance?
The terms and conditions of the policy determine whether the claims are accepted or refused. The claim may be rejected if there is any error or breach of these conditions. Financial repercussions can result from having a car insurance claim denied.