Monday 31 August 2015

7 mistakes that lead to rejection of car insurance claims

You did everything right. You bought the car of your choice and got it insured without wasting any time. Along with the mandatory third party liability cover you also availed a comprehensive plan. You chose to pay high premiums for comprehensive covers considering the fact that in case of any mishap your insurer will pay out all the expenses once you make the claim. But, much to your disappointment, your insurer turned down the claims you made after getting involved in an accident. You have been paying premiums without any break but it resulted into pouring money down the drain as you faced outright rejection to your claims. Let's analyze the reasons why your claims were rejected.

Misconceptions about comprehensive car covers

Most people are under the misconception that comprehensive motor policies cover all types of losses and damages which is far from being the truth. A comprehensive plan only covers only the following;
  • Third party liability
  • Accidents
  • Collisions
  • Theft
  • Damages of vehicle due to natural disasters
Breakdown and wear and tear can also bring about damages to vehicles and if such an incident happens no car insurance plans in India will provide coverage. There are some other reasons as well that can turn down one's insurance claims.

If you repair your car on your own and inform your insurer later

Almost all car-owners commit this fatal mistake. They renovate their cars after a mishap and intimate their insurers afterwards. Insurance providers, having failed to trace the mishap and repair reject the claim request. Therefore, one should always inform the insurer as soon as possible after the accident. A representative on behalf of the insurer will inspect the site of accident, measure the nature and cost of mishap and estimate the claim amount accordingly.

Installation of a LPG or CNG kit and not having it covered in the plan

Many people face rejection of claims simply because they did not cover the LPG or CNG kit installed in their vehicles. Even if the damage is not related to that kit, insurers will turn the claim down if the kit is not covered in the plan.

If you forget to transfer the policy in your name in case of buying an used car

The name of the car-owner is registered in the policy copy not the name or model of the car. Therefore, if you buy a second-hand car you have to shift the name of the car-owner in the policy copy within the stipulated time period. Your claims will not be settled if you don't transfer the cover in your name in time.

If the driver of the car lacks authentic driving license at the time of accident

If you have driven your car at the time of accident without a valid license your claims will be dismissed. On top of that, if you were under the influence of drug or alcohol at the time of accident your claims will not be settled.

If your vehicle is used for commercial purpose

If it is found out that you used your vehicle for commercial reasons in spite of being registered as a private vehicle at the time of mishap your insurer can rightfully refuse the claim.

If the car is not parked in parking zone and loaded with more passengers than capacity

If you violate traffic rules by parking your car in no parking zone and load your car with more passengers than capacity your claim request will not be granted

If you fail to notify your insurer in time after the mishap

Your insurance claims will be refused if you don't intimate your car insurance provider within the stipulated time.

Now that you know the reasons behind claim rejection, hopefully you will not make any of these mistakes next time and get the claim that you deserve.

No comments:

Post a Comment