Under what condition, claim can be rejected by an Insurance Company for Motor Insurance?
- Not Paying the Premium of Your Policy – If you fail to pay premium of your policy then no company will accept the claim.
- Do Not own a Valid License – During the period of the accident, the driver of the automobile didn’t own a valid driver’s license.
- Using your Private Car for Commercial purpose – At the time of accident if your private car is used for any other purposes related to commercial use then you won’t get any claim.
- Delay in Reporting the Accident – If you delay in reporting the claim after the accident occurred then the claim will be rejected.
- Damage due to self-negligence – Car insurance claims can only be applied for accidents or unfortunate events. It cannot be used for cases where the damage is caused due to self-negligence.
- Driving in an inebriated state – This can increase the number of accidents. However, if you are driving uncompromised, such as when you have consumed drugs or are drunk, your insurance company has the right to reject your car insurance claim.
- Providing misleading details to the insurance company – While applying for a car insurance claim, you are asked to provide details about the accident or event, such as the date, time, venue, type of accident, who was driving the vehicle, etc. If you make errors or fabricate this information, the insurance company has the exclusive right to reject your car insurance claim because you have provided misleading details.
- Modification of your car before insurance renewal – As a rule, if you meet with an accident and are applying for a car insurance claim, an agent from the insurance company comes to visit and physically inspect your car. If, in this case, you make any modifications to the vehicle to support your claim or otherwise, the car insurance company can reject your claim.
- Disobeying the policy Rules and regulations – When you take up a car insurance policy, you enter a negotiation or contract with the car insurance company. As per this agreement, you must abide by various rules and regulations. For instance, depending on your insurance company, you must inform them about the accident within a fixed time from when it occurred. Only in that case you shall be liable to get your claim passed. However, if you fail to meet the policies and regulations, the car insurance company may reject your claim.
- Insurance claims which arise out of consequential losses – Car insurance claims, which have occurred due to consequential losses, are often rejected by the car insurance company. For instance, if there is some technical error with your vehicle’s engine, you must get it repaired. The car insurance company may not pass your claim if you met with an accident due to negligence.
Tips to Prevent Car Insurance Claim Rejection:
- Inform Your Insurance Company.
- Report to the Police and File an FIR.
- Provide All Relevant Documents to Your Insurance Company.
- Have Proof of Damages.
- Don’t Repair without Informing.
- Don’t Increase Consequential Loss.
- Read the Terms and Conditions of Your Insurance Policy.
