10 reasons why car insurance claims get rejected
None of us like rejections be it job rejection or VISA denial, it just puts us down feeling demotivated and discouraged. Similarly unfortunately if your car insurance premium gets rejected it might bring in mental stress and let you down. Hence it’s important to know how and why your car insurance claim rejected. Before that let’s understand what is the car insurance claim procedure? And how it works.
Car Insurance claim can be made in two ways viz, Cashless & Reimbursement. For cashless claims you need get your vehicle inspected and repaired at a network garage without making the job payment except the consumables cost. However, in case of reimbursement claim you have to make the initial payment at the non network garage. You can then submit the job sheet and invoices with your insurer to get the claim settled.
Major Reasons of rejection of car insurance claims
Many of us are unaware about why car insurance claim rejected? Ever wondered what could lead to car insurance claim rejection? Well, car insurance claim rejection can take place due to several reasons and faults.
Non accidental loss of vehicle – In case your vehicle is damaged without facing an accidental scenario or natural calamity your claim might get rejected, as insurance companies settle claims or offer cashless benefits only in case of circumstantial damage and no claims for repair or wear/tear will be entertained.
Car accidental damage due to drunk and driving
This is completely against the law, hence if found driving under the influence of alcohol your accidental damage claim shall not be entertained.
Using Private Car for commercial purpose
If your private car gets damaged while making a commercial use out of it, your car insurer may deny claims. Commercial vehicles fall under a different set of coverage and laws for insurance; hence it implies different set of rules and premium.
Damage due to self-negligence
If you recklessly park your vehicle at a No Parking area and it collides with another vehicle, under such circumstances your claim shall not be entertained.
While assessing your vehicle if car insurance company find these faults then it might affect your claim approval process. You can simply avoid doing the above things and get your claims settled by your car insurer.