9 Tips to Avoid Car Insurance Claim Rejection

Here are the common reasons for car insurance claim rejections:

1. Driving the car without a valid driving licence:

Driving a car without a valid driving licence is the most common reason for car insurance claim rejection. Since it is mandatory to have a valid driving licence for a vehicle, no insurance company will entertain your claim if you are driving without it. Furthermore, the insurance company will reject your claim if you have a learner's licence and were driving without a permanent licence holder sitting in the front seat.

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2. Drunk driving:

As you must be aware, drunk driving is a criminal offence in India. If you are found drunk driving, the insurance company will reject your claim without any negotiation on it. Apart from the claim rejection, criminal action might be taken against you.

3. Using a car for an unspecified purpose:

Using a personal car for a commercial purpose is another common reason why your car insurance claim can get rejected. If the car is found to be used for any unlawful act, the insurance company will straightaway reject the claim.

4. Usage of non-permitted accessories:

Your car insurance claim can get rejected if you use car accessories that are not permitted by the law.

5. Not having the insurance policy in your name:

Not having the car insurance policy in your name is very common in the case of second-hand car owners. If a claim is raised and it is found that the car insurance policy is in the name of the previous owner while the new owner was driving the car, the claim will be rejected.

6. Delay in filing the claim:

When an eventuality occurs, the insurance companies allow 24 to 48 hours to file a claim. The insurance company will reject the claim if the claim is not filed within the stipulated period.

Here are 9 tips to avoid car insurance claim rejection:

1. Intimate the insurance company immediately:

In case of a major accident, it might not be possible for you to file the insurance claim immediately. Hence, insurance companies give you sufficient time to raise the claim. However, after the accident, you must call the insurance company within 24 to 48 hours, as per the terms and conditions of the insurance company and intimate about the accident. If you are not in a position to inform the insurance company, at least your immediate family members who are aware of the insurance policy are expected to do the same. Not informing the insurance company within a stipulated period can lead to car insurance claim rejection.

2. Take photographs after the mishap:

Individuals generally go blank and do not understand what is to be done when the mishap takes place. However, it is important to remain calm after the accident. You should immediately call the local police and take photographs of the mishap. These pictures will act as proof and will help the insurance company during the verification process, resulting in faster claim settlement.

3. File the car insurance claim:

Filing the car insurance claim by filling out the claim form is the first and crucial step in obtaining a car protection guarantee. You cannot afford to make any mistakes, provide incorrect information, or miss out on providing details while filing the form, as it will result in a rejection of a car insurance claim. Hence, filling in the claim form with utmost care is necessary.

4. Keep all the documents ready:

While filing an insurance claim, the insurance company will ask you to provide certain documents, such as your insurance policy, vehicle papers, driving licence, etc. Apart from this, as the insurance claim settlement is in process, the insurance company may ask for additional documents pertaining to your vehicle, insurance, and accident, as required by them. The insurance company can reject your claim if you fail to submit the required documents within the stipulated time.

5. Read all the terms and conditions thoroughly:

Car insurance is a legal contract between you and the insurance company. So, like any other contract, it comes with certain terms and conditions that both parties must be aware of. While buying the policy, many policyholders do not pay attention to these terms and conditions and blindly trust the insurance agent. However, when making a claim, it is advisable to read all the terms and conditions carefully so that you do not make any mistakes in the claim process.

6. Declare all correct information:

Often, policyholders make changes to their cars or add certain accessories without consulting their insurance company. Any such changes should be immediately reported to the insurance company, as hiding such crucial information can lead to claim rejection. Furthermore, many policyholders try to hide or misrepresent the information related to the accident. After the verification, when the insurance company comes to know about the hidden or misrepresented information, they will straightaway reject your insurance claim.

7. Avoid consequential damage:

Many policyholders make this common mistake of exaggerating the damage done to the car by driving it even after the accident. This harm is considered significant or unavoidable, and the insurance company will reject your claim in case of such consequential damage.

8. Renew your policy on time:

Policyholders often forget to renew their car insurance policy on time. If a mishap takes place in the gap from when the policy expires to the renewal, you will not be able to file the claim. Hence, it is necessary to renew the motor insurance policy on time without keeping any gaps. Besides, sometimes policyholders think that they will renew the policy later and remember that they haven't renewed the policy only after they face the need to make a claim. Renewing the policy on time also offers more discounts on the policy premium.

9. Do not raise claims against exclusions:

Every insurance policy comes with a set of exclusions. These exclusions are conditions and situations that are not covered under the policy. The insurance companies upfront declare the list of exclusions in the policy documents. Some examples of exclusions in car insurance policies are drunk or intoxicated driving, driving without a valid licence, disobeying traffic rules, using non-permitted accessories, etc.

To conclude:

Mishaps can happen at any time, and car insurance is a great tool to take care of the financial aspects of the mishaps. Making certain mistakes or negligence while buying the policy and/or filing a claim may result in car insurance claim rejection. Keep the above-mentioned tips in mind while filing the claim to enjoy a seamless car insurance claim.

Warm Regards,
Ketki Jadhav
Content Writer