As we all know that the first step to drive legally on India�s public roads id to purchase an appropriate car insurance policy. Owning an insurance policy is like locking your house when no one is home. Both is to protect your valuable assets. Does that make sense? If your car is being damaged or there is injury to other parties, you can claim your insurance. Your car is precious because it moves you around and around and earns you a living, so it is important that you maintain it. In insurance policies you pay premiums and if you pay premiums, its normal for you to expect your insurance company will approve claims filed during the policy period.
The insurance policies are for covering the losses, some of them are:-
But there are some cases, some examples where you file a claim and the company rejects the claim, which surely frustrates you. The insurance company only pays if it falls in their category.
It is not an uncommon term for car insurance policy claim to be rejected. Due to which many peoples term the insurance company as fake and fraud. So, if you want to avoid the claim rejection, you must know few reasons which can deny your insurance claim. The reasons are listed below:-
If you aren�t the owner of the car, which you were driving:-
Take an example that you have bought a second hand car and the transfer of ownership is due and still you are driving the car and suddenly hit a boy on the road. the boy got injured and you were taken to police and after asking to show the insurance policy you called the insurance company and they denied the claim because you haven�t legally transferred the car ownership through RTO.
Not following the rules and regulations:-
There are many rules which must be followed while driving like minor driving, drunk and drive and many. If your car is damaged and you filed a case and if it is found that your car is damaged because you have disobeyed the rule and you drove the car after getting drunk then you will not get your insurance claim.
Delayed payment of the premium of your policy:-
There is some certain fixed amount which you have to pay for the insurance policy before the due date occurs. And if you will pay the premium on time, your policy will be active and if you will delay the payment the insurance company can cancel or reject your claim. So, you must do the payment on time.
Making a fraud claim:-
Insurance company sells you their insurance policy because they trust you but sometimes there are many people who do the fraud claim for their vehicle. And if the insurer found the claim fraud, they can deny your claim.
Driving with the license:-
If ever you got found without a license or any invalid license and you meet an accident then the insurance company will surely deny your claim. Because driving in India without license is illegal.
Delayed notification of claim:-
There are some deadlines before you should notify the issuer about the accidents and the losses and somehow if you take more time than the deadline date then there are chances to get a claim rejection.
Insurance Renewal:-
To renew your insurance is the most important task for avoiding the claim rejection. Suppose your insurance policy got expired 2 days back and you were procrastinating the renewal or forgot about the insurance renewal and on the third day you met an accident. And when you will notify your insurance company about the loss, they will not consider as claim as you forgot to renew your insurance.
If you are using your private car, for commercial purposes:-
If you have told your insurance company that you are using the car for private reasons but you are using for commercial use and you met an accident and you claimed then there are high chances of rejection of your claim.
Giving incorrect information:-
If you have given incorrect information at the time of purchasing the policy for any reasons and somehow the insurer found that the information you have provided is incorrect then they will surely reject your claim.
Inform the company after repairing the car:-
Suppose you met an accident and repair the car on your own and now claiming to the insurance policy for the settlement of the claim. Then will be difficult for them to provide you the settlement of claim, hence, your claim will be rejected. So, it better to inform the company before getting your car repair by your own.
Cooperation is must:-
If you have raised a claim for your vehicle then it is necessary for you to cooperate with the insurer. For example, the insurer will ask you some questions and it is important for you to answer those questions honestly to them because if they will find that you aren�t telling truth to them then surely, they will deny your claim. And they will also ask you for some documents and if again you fail to submit those documents then there will chances of claim rejection.
Driving outside the specified area: -
There is some certain area which are defined in your insurance policy. Hence you must read the terms and conditions very carefully to understand those limited geographical limits. If you will drive outside that mentioned specified area and if any accident occurs then there are chances for your claim rejection.