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When can car Insurance claims be rejected?

When can car Insurance claims be rejected_ - (A)

Car insurance is mandatory in India and you buy insurance to protect yourself from the heavy financial burdens that come with owning a vehicle. When you file a claim for damage to your car, expect an immediate refund. When you can’t collect your money, it can be very frustrating. Therefore, to avoid a situation where you cannot file a claim, you should familiarize yourself with the reasons why a claim made on your behalf may also be rejected.

  1. Driver problems

Driving without a legal license or driving frantically are the two most common reasons a car insurance claim is denied. The above measures are illegal and there is little that an insurer can do for you at the time of claim.

      2. Non-renewal of the policy

It is important that you renew your policy every year before it expires. A claim against a policy that has expired will never be accepted. If you contact your insurer with an expired policy when you make a claim, your claim will be denied.

      3. Delay in reporting the accident

Insurers expect you to report a claim as soon as possible, but also to provide a margin of safety. However, if it takes too long to file a claim and you do not provide your insurer with the correct documents in the allotted time, your claim may be denied. If your car has been damaged, as a general rule, inform your insurance company before taking it in for repair.

      4. add accessories or modify the vehicle

A policy is automatically renewed and covers the components available in the previous policy. However, if you want to cover additional accessories on your policy that were not covered previously, you must notify your insurer. Your insurer will include these components after a successful inspection and will charge an additional premium. Failure to comply with this instruction always leads to the denial of the right to these additional components.

      5. Going beyond specified geographic limits

If your accident occurred outside of the geographic limits established in your insurance policy, the claim will be denied. Your auto policy includes coverage for your vehicle in Indian territory and you will not receive claims for damages in the event of an accident outside the country’s borders, for example. Sri Lanka, Pakistan, Maldives, etc.

      6. Wear and Tear of the vehicle

Peeling paint, tire deterioration, etc. These are some common factors that go into normal vehicle wear and tear and are not considered part of a damage claim for your auto insurance. Your car claim is always directed against accidental damage or theft scenarios.

      7. Misuse of the vehicle

Vehicle awards are also defined according to their use. For example, the premium for a vehicle that is used for private purposes is always different when it is used for commercial purposes. Therefore, you cannot expect the insurer to pay compensation if you change the use.

Filing a car insurance claim is the simplest and most basic process that people must go through to get their money’s worth. Keeping the above reasons in mind is only beneficial if you are filing a claim against your auto policy.

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