Guide to Car Insurance Claim Rejection in India
Did you know that a filed car insurance claim can get rejected? Yes, it can happen due to various reasons and it is something that you should definitely be aware about. You also need to have an idea about what needs to be done to prevent such a scenario.
So, to help you out, we have come up with a simple guide on how the whole car insurance claim process can play out. Let us first take you through the major reasons for your claim to get rejected.
Common reasons why a car insurance claim can get rejected
- Being untruthful – If you are not truthful about what happened in the incident to your insurer during inspection, it could simply lead to a rejection of your claim. You should not list the earlier damages of the car in the claim, just to save some money.
- Non-disclosure of modifications – If you have modified your car in any way, then make sure that you notify the insurer about the same. If the accident happens because of any of those modifications, then you won’t be eligible to get the reimbursements.
- Using your car for commercial purposes – If you breach the policy terms, then the company can reject your claim. For instance, if you’re using your private car for commercial purpose and the accident happens because of that, then the claim can be rejected.
- Intimating the insurer late about the incident – In most cases, if you take more than 48 hours to report the accident to your insurer, then your claim might very well get rejected.
- Carrying a lapsed policy – If you are carrying a lapsed policy during the time of the accident, then there is no point in even asking for a claim in most cases because it will get rejected. Just like what happened with Piyush when he approached his insurance company for claims. He did not pay attention and was in a hurry, and raised a claim request with a lapsed policy. Soon after receiving the request, his insurance company rejected his claim as he had lapsed policy. He not only had to face the claim rejection but also paid heavy fines as carrying a lapsed policy is a punishable offense. Also, he now has to buy a new policy and he might have to pay a higher premium for that due to his negligence.
- Claims against exclusions – There are certain scenarios of accidents that fall under the category of exclusions in every car insurance policy. If your claim falls under this, then the insurer has the right to reject it.
- Breaking traffic rules – If you have met with an accident because of your negligence or because you broke traffic rules, then your claim to get compensation can get rejected. Drunk-driving, under-age driving and driving over the speeding limit are examples of such scenarios.
How can you prevent rejections?
- Always speak the truth – You must not lie to the representative of the insurance company. Always tell the truth about the damages done to your car due to the accident. This way, you will be able to make a successful claim.
- Read the policy carefully – Reading the policy thoroughly is very crucial to prevent such rejections. If you clearly know the policy conditions and exclusions beforehand, you will be well aware of when to make the claim and when not to. Knowing all the terms and conditions also helps you negotiate with the inspector to get the right claim amount.
- Report on time – You must act quickly once the accident happens. You need to get in touch with your insurer as soon as possible, at least within the 48 hours of the accident. By simply doing this, you can prevent at least one reason for your claim to get rejected.
- Follow the traffic rules – No matter what your car insurance covers, it won’t be of any help if the accident took place because of not following the traffic rules. Any breach in that can lead to your claim getting rejected, so you should definitely abide by all the rules.
- Renew your policy on time – This is something that you should do, no matter what. Ideally, you should never skip the due date, and should always renew your policy on time. Having an expired policy is equivalent to having no policy at all.
What to expect during a car insurance claim process?
As a car insurance policyholder, you should be aware of the car insurance claim process that you must follow if you are ever involved in a car accident. To start with, you need to get in touch with the insurance company and intimate them about the incident at the earliest. From there, the car insurance company can follow any of these three paths – send an inspector to the site of the accident, ask you to tow the car to their certified garage or will be ready to accept the inspection report from the garage of your choice.
You will have to make the next move according to this. More often than not, it is mentioned in the policy claim beforehand. Be it any of the three cases, you need to be truthful about the damages caused by the accident. Apart from that, you need to be ready with all the necessary documents, including the policy document, duly filled & signed claim settlement form, FIR, driver’s license, RC, pictures of the vehicle and more. Once all the documents are validated, you can expect to get the claim settled with the reimbursement amount transferred to your bank account.
In conclusion, we would like to stress on the fact that you need to be truthful about the whole process and be ready with the documents and evidence. Only then can you expect to get the claim settled in a hassle-free manner.