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.
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