Misinformation and under information are the two major causes due to which motor insurance claims of many people get rejected. Today, we will tell you about some causes that lead to the rejection of your claim.
Lack of information
A common reason for claims being rejected and people complaining is that certain items are not covered under a damage policy. These require purchasing a separate add-on cover. For example, several parts or depreciation loss is not covered in the basic policy. This one needs a separate add-on cover.
Repair before making the claim
A common mistake is to get the vehicle repaired yourself. The information is then given to the insurance company. It makes it difficult for the company to track down an accident and then repair it. This makes it even more difficult to assess the damages and approve the claim. This is the reason why you should approach the insurance company before sending the vehicle for repair, so that they not only assess the damage but also provide roadside assistance and take the car to your garage.
Commercial use of vehicle
If you have purchased a car for personal use but have started using it for commercial purposes, then the claim will be rejected in case of an accident.
Furnishing false information
If false disclosures or other physical facts have not been disclosed at the time of purchase of the policy, such as no-claim bonus or previous damages are misrepresented, the claim is bound to be rejected. Similarly, if someone provides false information about accident or damage while filing a claim, it can be rejected.
Inappropriate ownership transfer
It means that the vehicle owner has failed to transfer the registration and insurance in his name. In such case the claim of insurance will not be considered.
If you install a CNG kit, add accessories or make changes to the body of your car, you will need to inform the insurance company immediately. Otherwise your claim will not be accepted in case of an accident.
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Overlooking policy guidelines
If you do not comply with the limitations of the clauses in your policy, the claim will be rejected. Hence, if you are not driving within specified geographical limits or if the vehicle does not have specifications listed in the policy, like the capacity of a particular engine, then there are chances of the claim being denied.
Driving without license
If the person driving the vehicle at the time of the accident does not hold his/her license, the claim will be rejected. In addition, the person must have a valid license that has not expired. The type of vehicle for which the license was issued should be the same.
Another obvious reason for rejection of a claim is drunken driving. Since it is illegal to drive under the influence of alcohol in India, any claim arising out of an accident caused by drunken driving will be rejected.
Delay in the renewal of the policy
If you forget to renew the policy and an accident occurs during this time, the claim will not be accepted by the insurance company.
Loss due to natural wear and tear
Engine damage due to hydrostatic losses is common during monsoons. Here the damage is not caused by floods or rain, but because someone drove the car in a waterlogged area. Obviously, this will not be covered by the insurance company.
Mechanical or electrical breakdown
Motor insurance policies do not cover any mechanical or electrical problems. Items such as engine oil or lubricant are not covered by the basic policy, and neither are any plastic parts or tyres. Any damage caused to the vehicle during normal use, such as worn tires or tubes, is not covered.
Vehicles nowadays come with technologically advanced keys and keyless locking systems, which can be costly to replace. It will be covered only if you have an add-on cover for it.
Also read: How To Save Money On Car Insurance