The idea of taking a car insurance policy is to ensure that if the car unfortunately meets with an accident, we can claim some money to get it back into the shape or at least minimize the losses. However, many times car owners fail to get their car insurance claims settled to their satisfaction. If you too are also dealing into one such situation, you might consider the following reasons for car claim rejections:
10 Reasons for Car Insurance Claim Rejection by Insurance Company
- Premiums are not paid on time: One of the main reasons of a car insurance claim rejection is that the premiums have not been cleared on time. If you haven’t paid your premiums on time, you need to check your policy for any grace period. You can pay the due amount within time to ensure you are consistently covered under your insurance policy.
- Non-disclosure of information: While opting for the car insurance, you need to disclose all information about your address (including change in address), personal illness (like Epilepsy) or any previous accident of your car to the insurer. Without it your claim can be rejected because of non-disclosure.
- Unspecified or Unlicensed driver: If the driver did not have a valid license which means a license that is fake, expired or of a different category of vehicle then the claim may get rejected. This may also happen if someone else other than the registered owner was driving the car due to non transfer of the vehicle from the previous owner to the current owner through RTO.
- Driving under the influence: Many insurers reject the claim if the driver was driving irresponsibly or driving under the influence of alcohol or other intoxicants.
- Car not parked securely: The insurer may want to know if your car was parked securely. If your car got stolen or damaged, while it was not parked in the garage or at a safe place, your insurer may reject the car insurance claim
- Vehicle inspection not processed: Majority of the insurers would want your car to be inspected at the time of taking the insurance. This helps them checking any pre-existing damage. If you don’t follow the process, they have all the right to reject your claim anytime within car insurance claim process.
- Absence of tracking or security device: Your insurer can reject your claim for theft or damage to your car if you are supposed to have an alarm, locks and tracking device in your vehicle under the policy, however you have not installed them.
- No proof of accident: There are no spot photographs or other evidence of the accident and the damage to the vehicle.
- False claiming of the No Claim Bonus: According to All India Motor Tariff provision any false declaration for claiming NCB leads to any claim being denies and any benefits to be forfeited under the policy’s own damage section
- Claiming damage other than accidental: Wear and tear of the vehicle are not covered under the policy and claiming any damage to the vehicle other than the accidental damage can lead to the claim being denied.
What to do in case of car claim rejection?
If you feel that your claim should not have been rejected, here are some points that you may want to consider:
Go though the policy documents: You must ensure that you provided all correct details at the time of getting the insurance, highlighting the areas where it says you are covered. If your insurer demands additional information, you should note that down.
You can also in touch with us and our industry experts at InsuranceSamadhan.com who will advise you after studying your policy. We help resolution of similar and other insurance related cases including help on how to submit the complaint against the Insurance company for the rejected Car Insurance policy. At InsuranceSamadhan.com – we are a tech enabled Insurance complaints redressal forum who help aggrieved insurance customers to get their dues. We have helped resolve over 12,600 cases in the past.
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