Common Reasons Why Car Insurance Claims Gets Rejected

  1. Premiums are not paid on time: One of the main reasons for a car insurance claim rejection is that the premiums have not been cleared on time. If you haven’t paid your premiums on time, you need to check your policy for any grace period. You can pay the due amount within time to ensure you are consistently covered under your insurance policy.

  2. Non-disclosure of information: While opting for the car insurance, you need to disclose all information about your address (including change in address), personal illness (like Epilepsy), or any previous accident of your car to the insurer. Without it your claim can be rejected because of non-disclosure.

  3. Unspecified or Unlicensed driver: If the driver did not have a valid license which means a license that is fake, expired, or of a different category of the vehicle then the claim may get rejected. This may also happen if someone else other than the registered owner was driving the car due to non-transfer of the vehicle from the previous owner to the current owner through RTO.

  4. Driving under the influence: Many insurers reject the claim if the driver was driving irresponsibly or driving under the influence of alcohol or other intoxicants.

  5. Car not parked securely: The insurer may want to know if your car was parked securely. If your car got stolen or damaged, while it was not parked in the garage or at a safe place, your insurer may reject the car insurance claim

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COMMON REASONS WHY CAR INSURANCE CLAIMS GETS REJETED


Every car holder must know the reasons behind car insurance claim get rejected; otherwise he may do the same mistakes that commonly most people do. Reasons may change according to insurer.

1- Driver Related Issues
You Driver must have legal driving license are he may driving under intoxication. Otherwise you claim of motor insurance will be rejected. It’s also against law and then no one can do anything for you.


2- Wear and Tear of Vehicle
Most of people think that insurance company will pay for any damage regarding car even if their car tires are faded and paint of car got pilled but it’s wrong thinking. Insurance company will only pay the damage in case your car got stolen or any accidental damage.


3- Modifying the Vehicle
Most of People modifies their car and don’t know that the insurance policy which they are holding only covers only components which are in old car. In case you modifies car must inform the insurer all changes after then he will include them and may charge some additional premium. Otherwise you claim will be rejected for modification as old policy will cover only old components.


4- Insurance Policy Violation
Some people don’t know that insurance policy for private use is different from commercial use.
They use it for commercial purpose and got accident, and then insurance company tells them that their calm is rejected because they have insured their care under private category but they are using it for other purposes.


5- When you drink and drive
Most people don’t know that their claim for insurance is not accepted in case they fund drunk.
It is also legal because drunk driving is like playing with lives of yours and others who are sitting with you.


6- Missing an insurance renewal
In case you car policy is expired and you have not renewal the policy, then they will not help you in that condition. Your claim will not be admissible. Because insurance company does not approve claims of uninsured car.

7- Car owner is not your name
Commonly it is observed that people buy second-hand cars and they don’t transfer them to their name. In case their car got accident then you claim will not be admissible because there was no legal transfer of ownership.

8- Delay in Claim Intimation
Every insurance company has a deadline in which you have to submit claim and provide complete information regarding accident and associated losses.
Due to any reason, if you are not able to intimate in given time, then it will be possible that insurance company will disapprove your claim.


9- Non-Disclosure
If you hide any information about the accident like you have not told insurer that you were drunk when you were driving and they somehow able to know this then they may reject you claim.


10- Negligence
If your car gets any loss due to your own negligence like you drive car is manufactures states in manual that car will be damaged in flooded and you drive in such areas and faces same. Then car insurance will not redeem the loss amount.


11- Running away from the accident scene
It commonly happen that we get panicked when accident happen. We make a mistake of running from the accident scene. According to policy you should not move your vehicle and contact nearest police station.


• Frequently Asked Questions By People

1- What To Do When Insurance Claims are Rejected
2- How do I appeal an insurance claim?

You must fallow the under mention easy steps to take when dealing with rejected insurance claims.

1- Start by asking question
First of All you must know that why insurer rejected you claim. Then you will be able to defend you self. Ask the insure for explanation, study the provided explanation and carefully examine the data if you believe that there is something which is missing then contact insurer for clarification. don’t be panic. May it was just due to wrong data or misunderstanding.

2- Gather The Necessary Inteal
If you fund any kind of clerical mistake is to blame, so it can be fixed. you should need to send all paperwork to your insurer and provide complete information regarding time and dates. You should provide all necessary data which will be helpful for your case in writing.


3- Appeal, And be patient
Commonly you have to file your appeal within 180 days from the date of rejection. Appeal may take about 30 to 60 working days. your appeal can be review urgently. But it may take more time.
It can be happen again that you are denied or they may approve your claim.

• What is Section 45 of Insurance Act?

The regulation as per Section 45 of the Insurance Act allows insurers for calling a policy in question on the ground of misrepresentation or suppression of a material fact not amounting to fraud only within the initial three years of the policy.