When you buy car insurance, you think of certain reasons to buy that insurance, the reasons could be if there is any damage to the car because of an accident insurance can help. if any third party gets injured with your car, or if any property is damaged then the insurance companies can that amount and help you financially, and another reason could be that if your vehicle got stole then the loss could be paid by the insurance company. So, the main motive behind buying car insurance is to financially secure yourself from any of these incidents. But what if the car insurance you bought gets rejected? Do you have any idea why sometimes this happens? In this blog, we will know the reasons why your insurance claims get rejected and what should be done to prevent claim rejection.
- Fraudulent Claims: Let us suppose your car had pre-existing technical problems and your vehicle met with a small accident because of which your vehicle got small dents, so you went to claim your insurance, claiming that the car is not working properly and it had technical issues because of the accident, a surveyor is appointed at this time and he checks and verifies your car if the car has an actual impact because of the accident or not. If the surveyor concludes that the claim was misinterpreted, he will generate a report, and your claim will be rejected by the insurance company.
- Drink and Drive: Drinking and driving is a legal offense and should not be done in any case and if you are drunk and driving your car and your car met with an accident and injury to the third party or property damage is involved in it. The insurance company will not let you claim your car insurance.
- You don’t own the car: If someone buys a secondhand car from a friend or any other person without proper documentation and legal process and does not transfer the RC(Registration certificate), then it can be said that the vehicle is not owned by the person. But the person who bought the second-hand car bought insurance of that vehicle in his own name. In this case, there is a lack of insurable interest, and the claim gets rejected. So the first thing you should do before buying a secondhand car is to transfer the RC in your name.
- Driving without a driving license: If you don’t own a driving license or you didn’t renew your license and your car met with an accident. Insurance companies will not help you in this case as this is illegal to drive a vehicle without a valid license and as a result, your claim will be rejected by the insurance company.
- Negligence: Let us suppose you handed over your car to a person you trust or is known to you but he fled away/stole your car and you have been the victim of fraud because of your negligence. In this case, if you file an insurance claim for the stolen car, but the insurer requests a duplicate key and you have lost it due to your negligence, your claim will likely be rejected. There’s one movie “Ferrari ki Sawari” in this movie there is one scene that is related to this point. A car cleaner comes and asks for the car key from the driver. The driver without properly knowing that person hands over the car keys to him and the car cleaner steals the car. So we should be vigilant in such scenarios to prevent claim rejection.
- Violation of Policy’s terms and conditions: If you have bought a policy insurance for a private car but are using it for commercial use, straight away your claim will get rejected.
- Modifications in the car: Suppose your policy period is 1 year. In this period you modify your car with a CNG kit and don’t inform the insurance company about the modifications you have made. Your claim can be rejected as with the modifications in the vehicle, the risk gets higher for the insurance company.
- Withholding the truth: Insurance companies fully rely on trust and principles so everything should be transparent at the time of documentation. Suppose you bought an insurance policy from an insurance company and afterward bought a new policy from another insurance company and you didn’t tell the new insurance company about the claim history, or your car’s proper information in the future if they get to know about the claim history, the claim gets rejected because of false information.
- Delay in claim: When your car met with an accident, it is important to inform the insurance company promptly, to get the claim. Some companies ask to file insurance claims within 48 hours, while others ask to claim within 7 days. If you cross that timeline then your claim gets rejected. So, make sure to inform your insurance company about the accident and claim your insurance on time. You can inform the insurance company by dialing their toll-free number which is generally mentioned in the policy.
Expired policy: Different insurance companies give different plans or policy periods and you need to renew them on time. If your insurance policy is lapsed and you did not renew it then your claim can be rejected. One should always renew their car insurance on time or before the due date.
