Yes, we have all forgotten that for safety reasons we are insuring our cars, and with the expectation that in case of an accident, the insurance provider will come to our rescue. A Car insurance policy is intended to help you pay costs when your vehicle is damaged or other people are injured jeju car rental.
When you own a vehicle then it is a must to have a vehicle policy. The car is precious because it drives you around and makes your life easy, so keeping it running is a must for you. Don’t you think so? Well, According to the Motor Vehicles Act, 1988, each vehicle owner must purchase car insurance if you drive on Indian roads.
Most people believe buying car insurance in India is simply a waste of money. Many citizens say the car insurance companies are not paying auto accident claims. All I can say is this is just a misunderstanding. Car insurance claims are paid based on proper documentation and terms and conditions by insurance providers.
Nevertheless, there is nothing stopping the insurance provider from rejecting the claim made in conditions explicitly included in the policy documents. Other than the lesser-known factors which may vary with the insurance firms, some obvious ones which relate to all of them are important to learn. These are worth knowing, as the insurance provider legitimately abides to walk away without charging a penny in these circumstances.
To prevent denial of your application, you should be aware of the reasons for rejections of car insurance claims. Here’s a guide to help you get to learn more about vehicle insurance claims.
Below are the Reasons for Claim Denial by the Car Insurance Company
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Driving Without a License/Invalid License
Some of the key reasons that your auto insurance claim will be denied is driving without a driver’s license or with an expired license or driving under intoxication. Such actions are illegal in India, and in these situations, the insurance provider cannot authorize the claim.
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Not Informing Your Insurance Company
It is one of the common mistakes committed by most policyholders. You may get the car repaired on your own, and then inform the insurance company about the claim being settled. Tracking the accident and repairs is difficult for the insurance provider, therefore, it makes it impossible for the insurance company to determine the damage and accept the claim.
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No Medical Aid at the Hour of Injury
If due to a car accident, you want to make a claim for injuries, then it is crucial that you get immediate medical treatment. When you do not, the insurance provider can make counter-arguments. The insurance provider might challenge whether the accident caused no injuries. However, if you have written documentation (hospital medical bills or doctor’s certificates of diagnosis) that you were receiving medical attention shortly after the crash, then you would have a good point to dispute the benefits.
Until having your car fixed you should also notify your insurance provider. The insurer must send an approved individual to assess the severity of the damage to the car, determine the cost of the damage to be repaired, and help you with the correct claim for the repair.
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Not Paying the Premium of Your Policy
The specified amount of the premium must be charged on or before the due date, in order to accept the application. Your insurance policy stays active by paying the premium on time and the insurer is able to process your claim; but, if it is not, the insurance provider can refuse or reject your claim.
If you tell the insurance provider about the loss, they ‘re not going to accept the claim as valid. The only explanation for this is that the vehicle was uninsured. Paying the insurance premium on time is a safe idea to prevent unwanted denials.
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When You Drink and Drive
You know drunk driving is a civil violation and it will take you to court. Say it was a celebration of a friend that you and your friends drank alcohol at. You drive your car after dinner but lost control and banged the car of a third party. Traffic policemen can pick you up immediately and file a claim with the loss bearing party.
The insurance agency will investigate the case and they will refuse further execution of the claim on establishing the fact that you were intoxicated which contributed to an accident and claim.
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Driving without a Driver’s License
When, in this situation, you are caught driving your car without a driver’s license, should you have an accident you will be held equally responsible for the fault. For such a case the insurance provider retains the right to initially deny the claim.
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No Proof of Accident
When you want to lodge a claim for auto insurance, you will take photos of the damages incurred by the crash and the injuries. If you fail to do so before leaving the spot, then the insurer can argue on during the settlement of your claim.
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Not Informing About CNG/LPG Kit Fitted in Your Car
If you want more from your car by adding a CNG / LPG set in the form of higher mileage, it is your duty to advise or announce it to your insurance provider. If you buy/renew auto insurance, the insurance provider will take care of the modifications to your vehicle and will have it protected under the policy. Moreover, you have a risk that your claim will be denied by the insurer, by not reporting the additional package.
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Driving a modified car including New Accessories without intimation
You made several statements on car features such as engine power, alloys, or others when you took out the insurance policy. That is what you would get covered by the program. Yet after a while, you got an upgrade in the engine of the car and did not intimate the insurer likewise.
And if you have an accident, the insurance provider has the full right to deny the claim on the basis of un-notified vehicle adjustments.
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Providing Incorrect Information
If at the time of payment of policy, you submitted incorrect details to decrease the premium and if your insurance provider discovers that you submitted incorrect information, your claim will be denied.
Never present the insurers with false details that may lead to a claim being rejected and may even invalidate the insurance policy.
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You Waited Too Long Delaying to Report the Accident
In India, every other car insurance company has its own range of terms and conditions. There is a clear timeline which each insurance provider sets to file claims for auto insurance in accident times. The insurance provider needs to be intimated as soon as possible in the event of an incident. Most insurance providers have a regular 48-hour, 72-hour, claim imitation deadline. Unless the policyholder has not adhered to the time limit is then the insurance provider has the right to deny the claim.
A number of insurance companies do not treat damages as seriously. For example, if your car is damaged as a result of a collision but you still decide to drive that leads to further vehicle wear and tear, then your insurance company has the right to deny your insurance claim. So never take such risky moves.
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Negligence
Any type of negligence which contributes to losses will not be covered. As if you drive your car in flooded areas despite the manual of the manufacturers which states that if driven in such condition, the car will breakdown. The argument that emerges in a case like that would not be charged.
How to Claim Car Insurance Successfully
Now that you are aware of the reasons for the denial of claims, let us know how to successfully claim auto insurance.
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Inform the insurance provider about
The first move is to keep the insurance provider aware of the accident. You can alert them through a phone call, email, or mobile app.
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Have Proof of Damages
When a third party is involved in the collision, it is best to take photos of losses to your car as well as the third party’s vehicle. Because the insurance provider can send an approved individual to assess the claims, it is also best to gather documentation in order to facilitate the claim process.
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File an FIR contacting police
An FIR is a must in the event of a robbery or significant accident, especially in the case of incidents involving a third party resulting in death or bodily injury. In case of auto theft immediately file an FIR.
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Provide the insurance provider with all necessary documents
Ensure that all relevant documents are forwarded to your insurer without delay. Your insurance provider can start the claim process only after all necessary documents have been issued.
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Read the terms and conditions of your agreement about insurance
When you have received your car policy report, it is advisable to read through the policy terms and conditions to know what is included and what is not. It will enable you to understand what damages are not included when a claim for damages occurs.
But bear in mind that if you are paying for the right reasons, insurance providers do not refuse or deny claims. Be alert and safe when driving and buying car insurance to protect you and your vehicle.
Key Takeaway
Now you know what conditions your claim could be denied under. Make sure you don’t leave any space from your end because you’ll claim to be processed seamlessly. That way, you will be likely to collect the premium advantages that the car insurance plan provides.
If you own a car and still have any doubts be it a Tata, Hyundai or any Maruti Car Insurance claim then Nexus Maruti can be your one-stop solution being the most trusted Maruti Authorised Service Center in Yelahanka and BEL Road for all your car insurance claim and related issues.