Why Your Car Insurance Claims Can Be Rejected ?
Published on June 25, 2020. EST READ TIME: 5 MIN
Car insurance claim rejected? Don’t know what to do? Though there is nothing much you can do about a rejected car claim. But you can surely prevent your car insurance claim from getting rejected if you’re aware of the below scenarios. Read on to know the reasons why your car insurance claim can get rejected.
Ensure that your car insurance policy is not lapsed: If you miss out on renewing your car insurance policy then there are high chances of the policy getting lapsed. And driving with a lapsed policy means you are not just taking a legal risk, but also a financial risk that can put your future at stake. Insurance company would out rightly deny you coverage if you have a lapsed car cover. Hence, timely renewal of car insurance policy is imperative. Not renewing your car insurance policy within 90 days from the time of policy expiry can make you lose out on the no claim bonus too.
Drunk driving: If at the time of accident, you’re found to be driving in an intoxicated state, then no coverage is provided and this stands as a good ground for the insurance company to reject your car claim.
Damage caused due to self-negligence: If you’ve parked your vehicle in no parking space and it is stolen or is damaged due to collision, then the insurance company would not entertain your claim.
Using private vehicle for commercial purpose: If you are found using a private vehicle for commercial purpose at the time of accident, then the car insurance company can deny you claim. Commercial vehicle insurance is guarded by different set of laws and the premium for same varies in comparison to insurance for private car.
No intimating the insurance company on time: If you delay informing the insurance company about the damage caused to your car, then the insurance company can reject your claim. Generally, it is important that you inform the insurance company within 24-48 hours of the accident. However, on failing to do and driving the car without consulting the company or police can stand as a ground for claim rejection.
Driving without a valid driving license: As we know, driving a vehicle without a valid driving license is illegal in India. And if you do so, then the claim can be rejected on the said ground.
Not informing the insurance company about the repairs: If you’re involved in a car accident and get the repairs done without notifying the insurer about the same, then the company would not be able to assess the extent of damage done and can straight away reject your claim.
Policy not issued in your name: If you are using a second-hand car and if the policy is still under the name of the original owner of the car, then you wont be eligible to receive any coverage.
Disclaimer:The above information is for illustrative purpose only. For more details,please refer to policy wordings and prospectus before concluding the sales.
This blog has been written by
S. Gopala Krishnan | Motor Insurance Expert | 40+years of experience in insurance industry
A veteran in insurance industry. S. Gopala Krishnan 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.
S. Gopala Krishnan 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".