A stark increase in the number of vehicles on the road and people not following the traffic rules can lead to traffic jams and road accidents. Therefore, in this day and age, it is always better to stay prepared for the unexpected. Whether it is your fault or someone else’s, an accident can lead to physical and financial consequences, which you need to be well-prepared for. Hence, it is always better to stay prepared for the worst by securing yourself and your vehicle with a comprehensive motor insurance policy.
It can be upsetting to be involved in a car accident, but what can be even more distressing is paying for third-party and personal damages out of your pocket. In most situations, car insurance claims get rejected as most insured are completely unaware of the coverage, and the terms and conditions of their policy.
The Mental Security of having Motor Insurance
A comprehensive motor insurance policy covers physical damage to the car, along with personal injuries or death, and third-party liabilities, arising out of vehicle use, depending upon the cover that you choose. In addition to both personal and third-party liabilities, theft and loss of vehicle are also covered. Plus, you can extend your policy cover by adding riders to it, such as on road protector coverage, to get the cover that suits you.
To know more about car insurance, you can research online policies, and also get a quick insurance quote through an insurer’s website.
Know the Claim Process
When you buy a policy, you must read the fine print including the claim procedure. When you are fully informed about the car insurance claim process, you will be able to file a claim in the correct way minus any errors which might lead to rejection of the claim.
Hence, when you buy motor insurance online, always make sure to check all details about the policy including coverage, terms and conditions, inclusions and exclusions, and the claim process.
Claim Rejection
When an insurance claim gets rejected, it defeats the purpose of buying insurance in the first place. For instance, if there were to be an error in documentation, then the claim might get rejected; such are the stringent rules defined by the IRDA (Insurance Regulatory and Development Authority). Motor insurance claims are rejected on the most legitimate grounds, which is why being well-informed about your policy and claim process can help you get over these unfortunate claim rejections.
Here are the main reasons why your car insurance claim may be rejected: –
- Expired Insurance Cover
While you might always be punctual about renewing your policy, in case you forget to renew on time and an accident occurs, you won’t be covered. Moreover, if there is an incident before the new insurance policy comes into effect, it will not be covered. That is why it is advisable to renew your car insurance prior to its due date. Even when you are tied up, you can easily purchase or renew car insurance online; all it takes is a few minutes.
- Driving without License
Anyone driving a car should have a valid driver license. A claim cannot be raised when the vehicle was being driven by someone without a valid license or an expired license at the time of accident.
- Delay in Notifying your Insurer
If you delay reporting an accident to your insurer, your insurance claim may be rejected. Usually, there is a time period of 24-48 hours for the accident to be reported. And if you continue driving your vehicle causing further damage, your insurer will definitely reject the claim.
- Driving under the Influence of alcohol
Drunk driving or driving under influence is a serious crime. If you are involved in an accident when you are under influence of alcohol, it is quite obvious that your claim will be turned down.
- Wrong end-use of Vehicle
If your vehicle is insured for private use, but you are using the vehicle during the day for business work, this will have to be disclosed. When you don’t have a policy that meets the end-use of the vehicle, your claim will be rejected.
- Additional Installations that are excluded
If you have installed an additional accessory which was not covered at the time of purchase of the policy, it calls for claim rejection. In this case, you will face a complete claim rejection regardless of whether the damage is related to the installation or not. Hence, don’t hide anything from insurance company, if you make any modification in the car body or do an engine upgrade, then let your insurer know.
- Conducting Repairs without Informing your Insurer
In case you are involved in a car accident, it is your duty to inform your insurer as soon as possible. If you get your car repaired on your own and then tell your insurer, you can face a claim rejection. A vehicle survey by an authorized person is a must before getting any repairs done.
- Policy is not in your Name
If you’re buying a pre-owned car, ensure that the car insurance policy and the registration have been transferred to your name. Your insurer can refuse your claim, if the name on the RC and that on the insurance policy are not the same.
- Vehicle Usage in Extreme Conditions
There are limits of usage pertaining to a vehicle. If any vehicle is used beyond these limits, such as vehicle overloading, it may cause claim rejection.
Why understanding your Car Insurance Policy is Imperative?
If you don’t want to end up getting distraught and paying for the repairs and injuries out of your pocket, understanding your car insurance policy is very important. All car insurance policies are not the same; every policy may have different coverage and associated clauses. Hence, reading carefully through the policy document is the first step to understand the terms and conditions, and to ensure that your car insurance claims are not turned down.
