Buying a car insurance policy has become quite common in India – thanks to the increasing awareness among people. Car owners generally show an inclination towards a comprehensive car insurance policy over a third-party car insurance plan. The greater coverage offered by the comprehensive policy is the reason behind this preference.
Having a car insurance policy keeps you tension-free. It helps you financially during crucial times and offers coverage against financial liabilities during accidents and mishaps. However, your insurance claim may get rejected sometimes. This results in utter disappointment and financial crisis. Frustrated insurance policyholders more often than not blame the insurers and call them frauds. But the truth is that your insurance claims get rejected because of certain clauses and phrases.
If you have already got your car insurance policy and want to know about car insurance claim rejection reasons, let us guide you.
Top 10 claim rejection reasons that you must know
Want to avoid insurance claim rejection for your car? Then go through the below-given details carefully so as to avoid any kind of inconvenience in the future:
- Not having a valid driving license: If during the time of the accident, you are found driving without a valid driving license, the car insurance company will straightaway reject your claim.
- Driving in an inebriated state: Drunk driving is illegal, and hence, if you meet with an accident while you are intoxicated, the insurance company has all the right to reject your policy claim. The insurer always investigates a mishap before accepting your claim. Driving under the effect of alcohol always increases the chances of car accidents, and hence no insurer will provide you with the coverage money in case of drunk driving.
- Not informing the insurer within the given time frame: Every car insurance company mentions a deadline within which you need to intimate them about the accident. If you fail to keep them updated about the mishap within the given time frame, then this can be one major reason for insurance claim rejection. If the policyholder is taking more time than the predefined period, the insurer has the right to reject the insurance policy claim.
- Not updating the insurance company regarding LPG/CNG kit fitting: If you are planning to fit CNG or LPG kit to your car engine, then it is your duty to inform the insurance company regarding the same. The insurer will keep a note of this update and mention it during the renewal of the insurance policy. But if you fail to intimate your insurer about this change, they are more likely to reject your claim.
- Untimely payment of insurance premium: Inability to pay the premium before or on the due date can always be a major reason for claim rejection. When you pay the premium on time, it helps you keep the car insurance policy active. Also, your insurer won’t be able to reject or deny your claim. Keep paying the premium on time if you do not want to face car insurance claim rejection.
- Providing misleading details to the insurance company: Providing incorrect details to your car insurance company in order to reduce the premium is not a solution. When the insurer comes to know about this fraudulent behavior, they can easily cancel and reject your insurance policy claim.
- Modification of your car before insurance renewal: Generally, car owners prefer installing stylish accessories to their cars. If you are planning to get your car modified or add some uber-cool accessories to it, then make sure you inform the insurer about the same. They will send an inspector who will evaluate the updated car and then add the changes to your car insurance policy. The amount of premium will also go up. If you fail to update your insurer about the upgrades, this can be one of the biggest car insurance claim rejection reasons.
- Disobeying the policy norms and regulations: Every car insurance policy will have its own set of rules and regulations. It is the responsibility of every policyholder to adhere to the same. If you fail to abide by these norms and regulations, the insurer can very easily reject your car insurance claim.
- Insurance claims which arise out of consequential losses: Consequential losses are never covered by the car insurance companies. So, if you continue driving a damaged car and the engine further deteriorates because you delayed the repair and service of the car, then the car insurance company can easily reject your policy claims.
- Car insurance policy lapse: Every commodity comes with an expiry date, and your car insurance policy is no exception. The policyholder should always make it a point to renew the car insurance policy from time to time. Once the policy is expired, it won't offer any coverage for your car damages. So, in case you have failed to renew your car insurance plan, your claim can get easily rejected.
Q. Do I need to inform the local police about the car accident?
Ans: Yes, of course! You should file an FIR at the nearest police station where the accident took place. Get a copy of the FIR as you will be required to provide the same to your car insurance company.
Q. What are the relevant documents needed to claim for my car insurance policy?
Ans: You are required to submit documents like a duly filled claim form, driving license, registration certificate, copy of FIR, and so on.
Q. Can I get my car repaired before the insurance company approves my claim?
Ans: No, you cannot! The insurance company will send an inspector to investigate the condition of your car and decide upon the approval or rejection of your policy claim. So, you should not take your car for repair before the insurer gives you the go-ahead.
Q. Do I need to keep proof of damages to my car as well?
Ans: Yes! It is advisable for car owners to have proof of damages in the form of clearly clicked photographs and videos. You can capture the damages to your car as well as that of the third party. This will smoothen and escalate the claim process.