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Basics Reasons for Rejections of Car Insurance Claims

Owning a car is a sign of prestige for most Indians. We consider it as an investment and spend considerable time in getting the best one for ourselves. We don't leave any stone unturned when it comes to maintaining our vehicles and keeping them in excellent condition. We even get the best car insurance plan that covers our car from unforeseen incidences like theft, accidents, vandalism & more. But, sometimes, when we claim our four wheeler insurance policy, our claim gets rejected. There are several reasons why a claim gets denied by the insurance company. Let's have a look at the top reasons:

1. Filing a Fraudulent or Invalid Insurance Claim:

Avoid making exaggerated claims. Include only the relevant information of the accident and do not make any fraudulent or invalid statements. In case of such incidences, you could end up with legal consequences in addition to paying an extra amount towards getting the fraud investigated.

2. Undeclared Modifications to the Car

Keep your insurer updated about the new accessory addition or modifications you made in your car like- engine upgrade, the addition of alloys, etc. In case of any discrepancy in the information, the insurance company has all the rights to reject your claim up front.

3. Breaching Policy Conditions

While buying insurance, you have to notify your insurer about the use and purpose of the vehicle you own. If you told the company that it for personal use, but while investigating, it comes out that you are using the car for commercial purposes then your policy will be rejected right away.

4. Driver-related Issues

The person driving the car at the time of the accident will be investigated on specific criteria like- possession of a valid driving license and not driving being under the influence of drugs or alcohol. If the insurer proves that the accident occurred when you were drunk/high, there's no question of any claim being processed.

5. Delay in Reporting About the Accident

Most insurers allow a time period of 48 hours for the accident to be reported. Any further delay and your claim will be rejected. However, in some special cases, the customer gets some extension in the time frame. Also, avoid driving the car after an accident as it may cause further damages, thereby giving the insurer a reason to reject your claim.

6. Banking on Lapsed Insurance Policy

If you forget to renew your policy and it gets expired, there are chances that you will be caught at the signal by the cops. It also means that if you register a claim in case of any mishap, your application will be rejected on the grounds of your policy not being active.

7. No Transfer of Ownership

When you buy a second-hand car, make sure you get the car insurance transferred to your name along with the registration certificate. In case you register a claim, and the policy is still in the name of the former owner, then your claim will be rejected.