If you want to drive a car legally on public roads in India, you’ll first be required to buy an appropriate car insurance coverage. In return for paying insurance premiums, it’s normal for you to expect your insurance company to approve claims raised during the policy period.
However, when a claim is rejected, it’s frustrating, costly, and disappointing. Rejection of car insurance policy claim is not new in the vehicle insurance industry. Though several people would term the insurance company as a fraud for the denial of the car insurance claim, the reason for the rejection by auto insurance companies is mostly based on certain clauses.
In order to avoid your claim being rejected, you should know the reasons for car insurance claim rejections. Here are a few reasons on the basis of which your car insurance claim can be denied:
- 1. Driving Without a License/Invalid License:
- 2. Not Informing Your Insurance Company:
- 3. Not Paying the Premium of Your Policy:
- 4. Not Informing About CNG/LPG Kit Fitted in Your Car:
- 5. Using Your Private Car for Commercial Purpose:
- 6. Providing Incorrect Information:
- 7. Delaying to Report the Accident:
- 8. Driving Outside the Specified Geographical Area:
- 9. Modifying and Including New Accessories to Your Car:
- How to Claim Car Insurance Successfully:
1. Driving Without a License/Invalid License:
Driving without a driver’s license or with an invalid license, or driving under intoxication is one of the main reasons why your car insurance claim can be rejected. These actions are illegal in India, hence, the insurance company cannot approve the claim in these circumstances.
2. Not Informing Your Insurance Company:
This is one of the common mistakes that most of the policyholders commit. You might get the car repaired on your own and then inform the insurance company for settlement of the claim. It’s hard for the insurance company to track the accident and repair, hence, it makes it difficult for the insurance company to assess the damage and approve your claim.
You should always inform your insurance company before getting your car repaired. The insurer will send an authorised person to inspect the extent of damage to your vehicle, estimate the repair cost of the damage and help you get the appropriate claim for the repair.
In order to approve your claim, the fixed amount of the premium has to be paid on or before the due date. By paying the premium on time, your insurance policy remains active and the insurer is able to process your claim; however, if it’s not, then the insurance company can deny or reject your claim. It’s a good practice to pay the insurance premium on time to avoid any unnecessary rejections.
4. 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.
5. Using Your Private Car for Commercial Purpose:
If you have informed your insurance company that you’re using your car for personal reasons, but have been using it for commercial purposes on a regular basis, there is a high likelihood that your claim will be rejected in the event of an accident.
6. Providing Incorrect Information:
If you have declared incorrect details at the time of purchasing a policy to reduce the premium, and if your insurance company realises that you’ve provided incorrect information, your claim will be rejected.
Never provide incorrect information to your insurer that may lead to denial of a claim and may even invalidate your insurance policy.
7. Delaying to Report the Accident:
Insurance companies expect you to raise a claim immediately but they do provide a timeframe to report the incident. If you delay reporting the claim and do not provide correct documentation, your claim may be denied. It’s important to inform your insurance company before you give your car for repair.
8. 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.
9. Modifying and Including New Accessories to Your Car:
When your insurance policy is renewed, additional components, accessories or modification, if any, mentioned in the previous policy are covered automatically. However, if you have added new accessories or modified your car during the policy period, you need to inform your insurer before it’s renewed. After inspecting your vehicle, the insurance company will include these additions in your policy with an additional premium. If you do not declare these changes, there’s a good chance that your claim will be rejected.
How to Claim Car Insurance Successfully:
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.
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 authorised person to inspect the damages, it’s always advisable to gather proof so it makes the claim process easier.
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.
So keep in mind that insurance companies don’t reject or deny claims if you are claiming for the right reasons. Be careful and safe while you drive and buy car insurance to cover you and your car.
Read informative Car Insurance Articles at Acko.
Read all our insurance & non insurance related articles here.