Familiarise Yourself with Reasons on Why Your Motor Insurance Claim Can Get Rejected
Vehicle insurance covers are a legal requirement as per the Motor Vehicles Act. All vehicles owners are required to have a motor insurance policy not only to ensure regulatory compliance but also ensure financial safeguard. In the absence of a motor insurance policy, not only the risk hefty penalties lurks around, but also liabilities that may become payable in the event of an accident due to your fault.
Be it a private or commercial vehicle, insurance is a must-have alongside registration and PUC documents. But to get the necessary support from your insurance company, you need to make a claim. At times, there can be instances where the insurer might reject your claim application. This article lists down some reasons that can be taken care of to avoid unnecessary rejection. Let’s have a look –
Not updating your information: One of the most common reasons for a rejection of bike or car insurance claim is your information with the insurance company not being up to date. Any changes in your personal details or details about your vehicle should be updated.
Often policyholders purchase and renew the policy on time but fail to verify the accuracy of its details. To avoid this, it is advisable to report any changes pertaining to personal details as well as your vehicle to the insurance company.
Damages due to illegal acts: The insurance company rejects any claims where it is the driver is at fault due to illegal acts like drinking and driving, driving without a valid license or an expired one, driving under the influence of intoxicating substances, and more. To avoid rejection of your claim, it is best to ensure you comply with the regulations and avoid accidents.
Failing to renew policy on time: Another reason for rejection of claim application is failure to renew the policy on or before the due date. You not only need to buy vehicle insurance when you first purchase the vehicle, but also subsequently renew it periodically. If you end up missing this due date, the coverage of your vehicle insurance ends, and no damages are covered by the insurer. So, remember the due date of your vehicle insurance and make sure you renew it well in advance.
Fraudulent claims: Every claim made to insurance company is verified. So, if you make a fraudulent claim for the repairs required and if found to be false, not only your claim gets rejected, but also subjected to legal proceedings. Ensure fraudulent claims aren’t made and stay away from unnecessary legal hassles.
Using private vehicles for commercial use: Ensuring your vehicle is only used as per the its permissions is critical. If you use a private vehicle for commercial purposes, no claim shall be entertained by the insurance company. Thus, if purpose of your vehicle is for commercial use, make sure you apply for the right registration at the initial purchase. Also ensure that you opt for a commercial vehicle insurance cover instead of a private vehicle policy.
These are some of the reasons why claim applications can get rejected. Now that you know of the various reasons, stay afloat from them and ensure hassle-free claim settlement. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.