Bidyut Gogoi met with an accident driving his car in Nagaland. It caused a total loss of the vehicle. The insurance company rejected the claim, saying Gogoi did not have a ‘smart card driving license’ as mandated by the Nagaland Motor Vehicle Department. Gogoi does have a valid license but in paper form. Insurance Samadhan is helping him fight the case on the grounds that the authority issued no notification to the existing license holders to convert the physical licenses into a digital form.
This is one among many cases when an insurance company may reject your car insurance claim. Gogoi’s case is still unique. There are instances when an insurer will most certainly reject your claim for no chance of you winning the case against them. We have compiled a few for you:
1) The prominent one is when you make modifications in your car. If you have installed a CNG kit, a theft device, or fancy equipment in the car, you have to inform your insurer. Even if the modification had no role to play in the case of an accident or damage to the car, the insurer may reject your claim for the sheer reason of non-disclosure.
2) If you or the person driving your car breaks a motor law such as driving the car under the influence of alcohol, then the claim will not be settled. The damage to the car due to violating motor laws will be seen as an intended peril. Insurance covers only unintended perils.
3) Only direct (not consequential) damage to the car is covered by insurance. For example, your car is parked in the garage. It rains and the garage gets flooded. You manage to get into the car and start the engine, which leads to engine seizure. Now any damage to the car due to flooding will be covered, but not the engine damage because it is the result of you starting the car.
4) There are more such instances such as using your private car for commercial purposes, the expired insurance policy, exclusions in the policy, or delay in intimation to the insurer after the accident that may result in the rejection of your claim.
Maintain complete transparency and educate yourself about all features of the car insurance policy to avoid claims rejection.
If you or anyone in your have faced a car insurance claim rejection recently then you can file a complaint against insurance here