Skip to main content

Can my insurance company reject my car insurance claim? - Reasons to reject a car insurance claim

Reasons to reject a car insurance claim
Is Your Car Insurance Claim Rejected? Have you not received 100 percent of your claim? There can be all possible reasons for claim rejection.

Getting involved in a car accident, paying for the repair, and bearing personal or third party losses can be costly, just not getting 100% of your insurance claims. Consumers are unaware that most situations covered by a comprehensive car insurance policy and are disappointed when their claim for car insurance rejected.

Not all car insurance policies are the same and may be subject to different streams. To understand the terms and conditions, careful reading through the policy document is mandatory.

Here are a few reasons why you have not received 100% of your claim for car insurance. 

The insurance policy lapse at the time of the incident

When your car is new, then you can keep your car under insurance. But there are some exceptions when it comes to insurance renewal. Your claim will be rejected by the insurer even if there is an accident or theft after the policy ends after one day. 

Delay in Notifying Insurance Company for Claim

If you delay reporting your car to an accident, your report may be rejected for insurance. Insurers give 24-48 hours to report the accident. If you continue driving (and causing damage), the insurance company will undoubtedly dismiss the claim.

Driving without a license

The driver must have a permit issued by the authorities. If you have an accident with a vehicle driven by you without a valid license, no claim can be made, let alone processed. A permit that has expired is as bad as no license.

Driving under the influence of alcohol

It is also self-explanatory. If you have an accident while intoxicated, there is no question of resolving that complaint.

Wrong End-Use of Vehicle

It is your car and is insured, the insurer may reject your claim if it proved that your vehicle has been misused beyond its limits.

Notifying the insurance company before conducting the repair

If you are involved in a car accident, it is crucial to inform your insurer as soon as possible. Getting your car repaired on your own and then reporting the insurance company will not do any good. The insurer is unable to locate the accident, and you may face complete rejection of the claim despite repair. Therefore, a detailed survey by an authorized person is necessary to initiate any repair.

Not a policy in your name

If you are buying a used car or a second-hand car, make sure that the car insurance with the certificate of registration transferred to your name. If the name on the RC does not correspond to the name on the insurance policy, the insurance company is entitled to reject the claim.

Additional installations are excluded from the original policy

You may have installed another accessory that was not covered when purchasing the policy. You are faced with a complete rejection of the claim in this scenario, whether the damage is related to the installation or not.

Vehicles used in extreme conditions

There are cases where vehicle accidents coincide when they are not used according to the terms agreed with the insurance companies. We have many such cases in India that are dismissed. We can relate something here. Many examples include overloading a vehicle with passengers exceeding the allowed limit, parking in a no-parking area and accidents due to lack of regular servicing.

Vehicles to be driven beyond the geographical area specified in the policy

As established by IRDA, there are two geographic areas for motor vehicle insurance. Zone A includes metro cities such as Delhi, Mumbai, Chennai and Kolkata, and Zone B cover the rest of India. If the event occurs outside of the geographical area according to the contract, there is a high probability that the insurance company may reject your claim.

Periodic wear and tear

Comprehensive insurance vehicle plans only cover accidents, collisions, frauds and losses due to natural disasters and third party liability. Normal wear and tear due to regular use of the car is not covered by car insurance.

Consequential damages

Auto insurance does not cover losses as a result! Suppose that any part of your car (not protected by warranty) suffers injury. Due to that, another part of your vehicle (which is protected by your policy) will fail. Sadly, damage caused by a harmful effect will not be protected by your insurer.

Conclusion: If you are involved in a car accident, it is essential to maintain proper contact with your insurer. If you need to make a car insurance claim, prepare yourself adequately to ensure that you take advantage of your insurance policy.


Post a Comment