Do These to Avoid Liberty Car Insurance Rejection
Car insurance policies issued by Liberty are categorised as either third-party liability coverage or comprehensive coverage and are issued both online and through its branches. In a third-party plan, policyholders are protected against the financial liabilities they owe a third party if an accident occurs with their insured vehicle. Whereas a comprehensive plan compensates you for the damages and losses sustained by your car in the event of a collision, theft, fire, natural disaster, or man-made disaster. Comprehensive car insurance is for overall protection, while third-party car insurance is a basic plan. Neither of these plans is expensive, thanks to the insurance company's reasonable rates.
Impressive as the plans may sound, any mistakes on your part can lead to a claim rejection by Liberty car insurance. So, follow the claim application procedure diligently to get much-need financial support should your car meet with any untoward incident. Here are some reasons why Liberty General Insurance Company can reject your car insurance claims.
Liberty Car Insurance Rejection Reasons
Liberty car insurance claim may be denied for the following reasons:
- In the case of unlawful use of a vehicle.
- Concerning the claim form and the supporting documents, there appears to be a discrepancy between the data provided on the claim form.
- A car accident was caused by the carelessness or negligence of the motorist driving the vehicle at the time of the incident.
- If a car is driven without a valid driving licence or proper registration, or if the permit is not valid, the vehicle may be impounded.
- A policyholder who fails to report an accident to the insurer may be held responsible.
- Unauthorised repairs and failing to get a proper insurance inspection on an insured vehicle.
- Accidents involving insured cars occur because the driver is intoxicated.
Fake Licenses Keep a Claim from Being Paid Despite the Best Insurance Plans
Case Study
Manoj had his car insured with Liberty car insurance. The total insured amount was INR 10,00,000. Manoj was travelling and on his way hit a divider, and his car got wrecked. He filed a claim with Liberty car insurance for damages worth INR 50,000, but the claim was rejected. He applied for a claim again for the broken window, but the claim was denied again.
Liberty car insurance rejected Manoj's claim, but he was not sure why such a thing had happened. He approached the court and served a legal notice to the insurer. His claims were presented at a district forum. He applied for compensation for the losses and harassment with litigation costs.
After putting his case in the district forum, he received a response from Liberty car insurance that his claim was rejected due to a fake licence plate. The insurance company detected the fake licence. But the district forum awarded the claims asked by Manoj, including interest and costs.
The National Commission considered various Supreme Court decisions on forged and phoney driving licences. There was a mention in the court ruling that no claims would be payable if the permit were found fake or if the relevant authority had renewed it. In this regard, Manoj's claim is denied on fairgrounds, according to the National Commission.
So a final decision was made not to award a claim to Manoj due to the forged licence.
Avoid These to Prevent Liberty Car Insurance Claim Rejections
1. Driving without a Valid Licence
This is probably something you already know, but we will reiterate it! It is against the law to drive without a valid licence. You would not be able to file a claim with your car insurance company if you weren't driving with a valid licence. This includes if your learner's licence was invalid or if you only had a learner's licence and weren't driving with your permanent licence.
Always ensure that your licence is valid and get it checked with the institutions too.
2. Renewal without a valid PUC
Your policy must be renewed with a valid vehicle pollution certificate (PUC). The IRDAI requires a valid PUC certificate for renewing your motor insurance policy, and if it has expired, you are in violation.
3. Violation of Traffic Regulations and Rules
To be a responsible driver, you must follow all road safety rules and regulations, regardless of whether you intend to make claims.
A claim (specifically for own damages) can be rejected if you are driving under the influence, driving drunk, or even running a red light when you were involved in an accident.
4. The RC is Invalid, or the Name is Incorrect
Ensure that your vehicle's registration certificate (RC) and all its other documents – such as tax certificate, pollution certificate (for cars that are more than one year old), and fitness certificate – are valid and up-to-date and are in your name.
5. NCBs Declared Incorrectly
It is possible that you could be denied a claim if you purchased a new motor insurance policy and had incorrectly declared your previous no-claim bonus (NCB). Make sure your NCB is correct and everything is perfect before making any claims.
7. Communication Lapses
Any time your vehicle is involved in an accident or stolen, notify Liberty General Insurance Company as soon as possible. It is also important to send all the necessary paperwork within the set deadline to avoid rejection of your claim.
7. Modifying Your Vehicle or Adding Accessories
Notify Liberty General Insurance Company whenever you alter or modify your vehicle (like installing a CNG or LPG kit).
Any claim you make regarding these new components will be rejected if your policy does not cover them. You may need to pay an additional premium after your insurer inspects these additions.
8. Vehicle Misuse
Vehicles used for purposes not covered by the policy cannot be claimed. Liberty will not accept your claim if you use a personal car for commercial purposes or if you overfill a vehicle.
Never use your personal vehicle for commerical purposes and ensure that your fuel tank is only filled.
9. Providing False Information on Your Claim Form
The insurance company can reject your claim if you provide false or fraudulent information on your claim form (for example, another driver was behind the wheel when the accident occurred).
Please be honest when answering the claims inspector's questions without changing them.
Wrapping Up
Upon an unfortunate incident affecting the insured vehicle, a policyholder is entitled to receive reimbursement for expenses incurred. Suppose a policyholder has been involved in a road accident or any other incident involving their covered vehicle for which they are financially responsible. In that case, they may file a claim with the company insuring their vehicle. With Liberty car insurance, you can make a claim quickly and easily. There are over 4,300 Liberty-authorised garages in India where cashless claims can be made.
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Add ons for your Car Insurance
You must fill out every aspect of the proposal form (physical or online), giving as much information as possible about your health and medical conditions, family history, occupation, income, current policies, lifestyle choices, etc.
You may also be denied car insurance if you purchased a policy for a private vehicle but used it for commercial use.
It is usually possible to file a claim under your car insurance policy as often as you like within a year. However, the car insurance claim will affect the no-claim bonus (NCB). Renewing your car insurance policy after repeated claims may also increase your premium.
Feel free to contact Liberty if you are still unhappy with the rejection of your claim. Even the company can commit mistakes. So, if you contact it and know from it, you can pick out those mistakes (if remains the case) and apprise it of the same. Who knows you can get a claim in the end.
An IDV is determined mutually by the car insurance company and you, the policyholder, for vehicles older than five years and discontinued by the manufacturer. Consequently, a zero-dep car insurance policy after five years may not be granted by Liberty car insurance.