Even if you drive carefully, the possibility of road accidents and car damage still exists. The process of car insurance claim rejection can be extremely daunting if you are unaware of its intricacies. To ensure a smoother claims process and avoid pitfalls, it’s essential to understand common reasons for claim denials and how to address them proactively. This guide provides tips to help you avoid common mistakes when raising a claim against your car insurance policy. Scroll through the section below to learn more about it.
Scenarios When Car Insurance Claim Rejection
Listed below are some of the common events when the insurance company tends to reject your car insurance claim request:
1. If You Are Driving in a Drunk State:
If you are found driving a car in a drunken state, then you will be punished according to the Motor Vehicles Act of 1988. Moreover, if you raise a car insurance claim and the insurer finds out that you were under the influence of alcohol while driving, then the claim request will be straightaway rejected.
2. If You Drive Without a Valid Driving License:
You must have a valid driving license to drive your car on Indian roads. If you ride without a license and end up having an accident, your claim request will be rejected.
3. If Your Policy Has Lapsed:
The car insurance company will reject your request if you raise a claim against an inactive policy. Thus, you should keep a tap on the car insurance renewal date and renew it before its expiry date.
4. If Car Modifications Happen Without Insurer’s Knowledge:
If you have modified your car with any additional features, then it is a must to inform your insurer. If you fail to do so and the insurer finds out about it during the claim process, then there is a high chance that your claim will get rejected.
5. If the Car is not in Your Name:
Whether it’s a new or an old car, it must be registered in your name. If it is not and the insurer finds out about the same during claim settlement, then your claim request will be denied.
6. If the Policyholder Has Disobeyed the Traffic Rules:
You must abide by the traffic rules while driving a car on the Indian road. If any accident happens and it is found that you had violated the traffic rules during the accident, then the claim request will get rejected.
7. If the Vehicle is Used for Illegal Use:
If any accident took place when you were using the insured car for illegal use, then the claim will be denied. For instance, you cannot use a private vehicle for commercial purposes.
How Should You Avoid Car Insurance Claim Rejections?
By following the tips listed-below, you can enhance your chances of a successful car insurance claim.
1. Don’t Raise Fraudulent Claims
You should never cause intentional damage to your car and then raise a claim request. Such incidents disrupt the trust between the policyholder and result in denial of the claim request. So, never raise a false claim.
2. Never Delay Claim Intimation
There is a stipulated time period during which a policyholder must raise the claim request. If the policyholder does not abide by the timeline and raises a claim request later, the insurer has all rights to reject the claims.
3. Read the Policy Terms and Conditions
To avoid the chances of car insurance claim rejection, you must thoroughly go through the policy terms and conditions. This will give you a clear understanding of the policy terms and conditions, based on which you can accordingly raise the claim request.
4. Provide Accurate Information
To get your car insurance claim settled, you must provide accurate information about the accident and other details. This will help the insurer to process the claim request smoothly. On the other hand, if the insurer finds out that you have provided incorrect information, the claim will be disapproved.
Also read: The Etiquettes to Follow When Communicating with an Insurance Adjuster
Take Away
So, always follow the traffic rules and regulations and the above-mentioned tips to avoid any chances of car insurance claim rejection.
