Reasons Why Your Car Insurance Claim Was Rejected
Published on June 22, 2020. EST READ TIME: 5 MIN
Car insurance is an agreement by which an insurance provider provides financial protection in case of an accident caused by your car or in your car is damaged or stolen.It is mandatory to have third-party liability car insurance in India according to the Motor Vehicles Act, 1988. A comprehensive car insurance policy would also help cover damages caused to your vehicle during an accident or any natural/manmade disasters.
Moreover, in an accident involving your car, there can be lawsuits and other legal repercussions that arisefrom it. Car insurance will help youprotect yourself against these legal fees and expenses you may incur.However, sometimes even though you have car insurance you are unable to avail the benefits due to your claims being rejected.
Car Insurance Claims
Car insurance claims are a process by which you can ask your insurance provider to compensate for the damages that have been caused to your car in an accident. Moreover, there can be circumstances in which you can ask your insurance provider to represent your or intervene on your behalf in a case where damages have been caused to the third-party but unintentionally.
Usually, there are two categories of processes by which car insurance claims can be made.
Car insurance cashless claim
Car insurance reimbursement claim
Reasons for claim rejection
Some of the major reasons that can lead to the rejection of car insurance claims are listed below.
a.Your car insurance claim would get rejected if your insurance plan had lapsed just before the occurrence of the event or accident.
b.If the driver of your car has been driving under the influence of alcohol or under the influence of any other intoxicating substance at the time of the accident, then your car insurance claim would be rejected.
c.Your car insurance claim will be rejected if the driver of your car did not have a valid driving license at the time of the accident.
d.Generally, the insurance provider must be informed about the accident within 24-48 hours. Any further delay in notifying the insurance provider about the incident can increase the chances of your claim being rejected.
e.Normal wear and tear due to the use of a car and consequential damages are not covered under car insurance. So, those claims which are related to the wear and tear of the car are mostly rejected.
f.If any additional accessory has been installed by you and this installation was not covered in the policy while purchase of the policy. Here, your claim would be rejected irrespective of the fact that thedamage caused to your car is due to the additional installation or not.
Hence, if you are in a situation where you need to make a car insurance claim, you should be well prepared and make sure you do not leave any loopholes so that you can obtain the maximum out of your policy.
This blog has been written by
S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.
Mr.S. Gopalakrishnan recommends"HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process."
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.