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Do you know the reason for rejecting a car insurance claim?

Reasons to reject a car insurance claim

Cars are one of the most convenient and cost-effective modes of transport today. Car insurance is particularly valuable because it also saves the financial costs resulting from third party claims or damages on your vehicle. Because you pay insurance premiums; You are entitled to claim payment in the event of an accident involving your vehicle.

CAR INSURANCE is an agreement by which an insurance company provides financial protection in the event of your vehicle, or your vehicle is damaged or stolen. As per the Motor Vehicles Act, 1988, third-party auto insurance is provided in India. A comprehensive car insurance policy will also help cover the damage to your vehicle during an accident or any natural/human-made disasters.

An incident involving a vehicle can result in litigation and other legal consequences. Auto insurance may allow you to cover yourself with legal costs and expenses that you may incur. Sometimes, even if you have car insurance, you are unable to receive benefits due to the rejection of your claims.

Car Insurance Claims

CAR INSURANCE CLAIMS is a process by which you can ask the insurance company to pay for the loss of your vehicle in an accident. Also, there may be circumstances under which you can ask the insurance agent to represent you or act on your behalf in situations where the third party has been harmed, but inadvertently.

There are usually two types of procedures by which claims for car insurance can be made.
  • Car insurance cashless claim
  • Car insurance reimbursement claim

Know the reasons for car insurance claim rejection

Listed below are several main factors that rejection of the car insurance claims.
  • If your insurance plan expired just before the event or accident, your car insurance claim would be dismissed.
  • If the driver of your car is driving under the influence of alcohol or any other narcotic at the time of the accident, your car insurance claim will be dismissed.
  • If the driver of your vehicle did not have a valid driving license at the time of the accident, your auto insurance claim would be denied.
  • Insurance companies are usually required to report the incident within 24-48 hours. Any further delay in informing the insurance company of the accident may deny your claim.
  • Under vehicle insurance, there is no protection from regular wear and tear and resulting damage due to vehicle use. Thus, those claims concerning the wear and tear of a car are often rejected.
  • If you have installed some new equipment, and this amendment was not included in the policy while purchasing the policy. Here, your claim will be rejected even though the damage for your car is due to additional installation.
·       Conclusion: Therefore, if you are in a situation where you need to make a car insurance claim, then you should be well prepared and make sure that you do not leave any loopholes so that you can get the most out of your policy.

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