Rejections are difficult to handle, whether for insurance claims or visas. You could feel disappointed and perplexed if your car insurance claim is denied. This is why it's crucial to understand the potential causes for an insurance claim denial.
People often complain about their car insurance claims being denied or receiving inadequate reimbursement. This often occurs because individuals make mistakes while submitting claims or lack appropriate awareness of the procedures involved.
It would be simpler to avoid this circumstance and get your car insurance claim amount if you are aware of the possible reasons your car insurance provider can deny your claim. Some of the most frequent explanations given by a car insurance provider for denying a claim include the following:
1. Making a Claim When it is Inappropriate
You shouldn't file a claim if you have minor damages on your car. However, here are two issues that need attention:
- Deductible: You won't receive anything if the cost of the repairs is less than your deductible (compulsory and optional). No compensation will be handled, and your claim will be considered closed.
- NCB Discount: Consider the case when the repair costs are marginally more than your deductible. In such a scenario, it is probably also not worthwhile. You will forfeit the No Claim Bonus (NCB) in car insurance discount you earned to refrain from filing claims. Only file claims if the cost exceeds the whole NCB discount.
2. Failing to Notify the Police
The worst mistake you can make is not to call the cops. Maybe you want to stay out of trouble with the law. Nevertheless, here are two situations where you must report the occurrence to the police.
- Accidents: You must notify the police and submit a First Information Report (FIR) to establish your claim for the damages sustained in the accident. If someone else is at blame, they could attempt to resolve things gently without calling the police. You can't consent to such a deal. You may record what occurred by reporting the incident to the police. Additionally, an FIR is a crucial document that insurers want to start the claim settlement procedure.
- Theft: You should notify your local police and submit an FIR if you wish to assert your car insurance claim for damages sustained due to car theft.
3. Refusing to Change the Insurance Policy's Name
You won't be able to file a car insurance claim for the damages if you purchased a used vehicle but neglected to change the policy to your name. Because the car insurance is not in your name, it will be considered invalid.
The seller must transfer the insurance coverage within 14 days of purchasing the vehicle. Ensure you prove your car ownership to prevent your claim from being denied.
4. Failing to Notify the Car Insurance Company by the Deadline
Any vehicle-related emergency should be reported immediately to your car insurance company. You are responsible for the repair costs if the claim is not approved. Call your car insurance company or send an email to let them know.
You may also submit the claim through the insurance company's website or mobile app using a computer or smartphone with internet access.
5. Transporting the Car
In car insurance claims, the role of evidence is crucial. It would be like the destruction of evidence to move your vehicle away from the crash scene. Not only do you have to accept the claim's denial, but you also have to pay for the repairs.
Wait for the police to come and look into the accident so that the FIR can be filed and the accident can be reported appropriately.
6. Driving a Personal Car for Commercial Purposes
A car insurance coverage is only valid for personal usage of the covered vehicle. Therefore, insurers have the power to deny your claim if an accident happens while you are using your car for commercial purposes, such as when you allow someone else to pay for using your car at their expense. As a result, the car insurance policy will be deemed invalid, and you will be responsible for paying to have the car fixed.
7. An Unlicenced Driver Using the Vehicle
Is a person without a valid licence driving your vehicle? Then, since an unregistered driver handled the car, your car insurance claim will be denied. Only let registered drivers use your vehicle to prevent unnecessary financial obligations, as you are responsible for the repair costs.
8. Using Intoxicated Drugs When Driving
In addition to property damage to your car, you might get injuries in an accident while drunkenly operating the covered vehicle. The car insurance policy does not cover liabilities in such situations. Thus, your claim will be judged to be denied.
9. Having Too Many Passengers
You won't be able to file a claim for damages if your car is damaged while driving more people than the car insurance policy allows. So it's crucial to avoid transporting more people than necessary to prevent your insurance claim from being rejected.
10. Failure to Declare a CNG/LPG Kit
You must inform the insurer if you have installed a CNG or LPG kit in your vehicle. To ensure that claims are handled using the data you provide, your insurer will update the installation of the CNG/LPG kit in your car insurance policy. If you have not disclosed the installation of such kits, your claim may be denied.
11. Other Exclusions
Losses or damages not covered by the car insurance are not compensated. Refrain from filing claims for losses that fall beyond the scope of the policy. Read your policy document carefully and know other exclusions mentioned. For example, no car insurance policy will compensate for depreciation cost unless you have opted for a zero depreciation car insurance add-on cover.
Conclusion
Although filing a car insurance claim may seem complicated, it is crucial to follow the correct procedures at each step to safeguard your safety and avoid having your claim denied. Follow your car insurance policy's terms and conditions while making a claim, and drive carefully.
Now that you know the mistakes to avoid when presenting your claim, make sure you adhere to the procedure for a simple claim submission process. Additionally, be aware of the coverages and exclusions to avoid unpleasant claims experiences. Additionally, renew the car insurance before the deadline to prevent claims from being denied.
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