Reasons Why Your Motor Insurance Claim Could Be Rejected

Purchasing a motor insurance policy isn’t just legally mandatory, but also plain practical. It covers our vehicle from most damages that it incurs. However, there are incidents that no auto insurance policy covers, and that is what we intend to clarify below.

  • The lack of a valid driver’s license at the time of the accident will also end in claim rejection. Especially, if the driver was proven to be under the influence of alcohol or drugs. Be careful who you lend your car to, as any damages incurred that include the above scenario will not be covered by your insurance company. This could also lead to legal penalties for you.

 

  • A small detail that used car owners fail to look at during the purchase of a vehicle is the transfer of the insurance policy under their name from the previous owner, thus leading to claim rejection.

 

  • The most common of mistakes people often commit is repairing the damages from an accident from their own pockets initially, and then claiming for reimbursement from the insurer. Intimating your auto insurance agent before initiating repairs allows them to track the events of the accident and inspect the damage to ensure the claim.

 

  • Another detail normally overlooked is the inclusion of the CNG or LPG unit in the insurance policy after installation. This leads to a direct rejection irrespective of the cause of the accident.

 

  • Using your private car for commercial uses such as transfer of goods or passengers will surely get your claim rejected.

 

  • You are likely to have your claim rejected if you fail to report it within 48 to 72 hours. A clear claim rejection can be expected in the event where your engine is damaged during the accident and you continue to use it regardless. The consequential damage is clear grounds of rejection from the insurance company’s perspective

 

  • Also grounds for rejection, are cases where, for example, the accident had occurred in a no-parking zone, or if the vehicle had exceeded its seating capacity at the time of the incident or in the event that the damage done was proven as intentional.

 

  • Other damages due to wear & tear, breakdown, etc., are not covered under insurance.

 

 

Remember to carefully read the fine-print on your car insurance policy to be clear about every instance covered by your insurer. You should also compare policies before-hand to ensure that you purchase the one that covers most of your auto insurance needs. For professional assistance over claim settlement or any other financial service, you may contact us on PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at insurance@plindia.com

 

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