We invest a lot of money for buying our dream car. One accident and you can see your precious machine in a horrible condition. The situation not only breaks your heart, but also burns a large hole in your saving. But, thank god! You have insured your car and you completely rely on the money that the insurer will provide you after your claim have been settled. Alas! The insurer declines your claim and now you have the hefty bill pending on your head. But, do you know why the insurer declined your claim? There are several reasons why an insurer can decline your insurance claim.
Car insurance claim settlement process isn't always troublesome. You just need to be aware of the details involved in the process. It's better to be armed to deal with any car insurance claim settlement woes that may come your way. However, it is not uncommon to have your car insurance claim rejected. There are several cases when the policyholder is unable to comprehend the reason for their claim rejection. These confusions only add to the feeling of frustration. There are several reasons why an insurer can decline your insurance claim.
Let's find out the circumstances where it is quite possible for your claim to get rejected and also some points which help keeping your good will with the insurer
1. Not knowing enough about the car insurance policy
Well, it is rightly said that lack of knowledge can destroy the mankind. There are many people who buy car insurance policy just for the sake of it. They completely ignore the terms and conditions. They even don't go through the features and benefits offered by the policy. Policy documents are designed to mitigate the financial as well as legal liabilities of car insurance companies. Missing the asterisks on the policy wordings can put you in a total mess. It is advised to read the policy terms and conditions carefully to avoid car insurance claim rejections.
2. Pay your premium on time
Procrastinating will only lead you to lapsed policy. Once your policy is lapsed, the insurance company will not entertain your car insurance claims. Also, you will lose out on your No claim bonus if you do not renew your car insurance policy within 90 days from its expiry. Therefore, you should keep a watch on your policy expiry date and renew it on time to avoid unnecessary hassles.
3. Inform your insurer first
Don't get your car repairs done without informing the insurer. It is the silliest mistake you can make. People generally think that they can inform the insurer after getting their car damages repaired and the same will be reimbursed from the car insurance company. A big no! After you make a claim, the company sends the surveyors to inspect the car. After a thorough analysis, the surveyors estimate the cost of damage and then the amount is provided to you.
Keep in mind that your insurance company has all the rights to reject your claim in case you get the repairs done first and then inform them.
4. Accident caused due to drink and drive
The insurance company will straight away reject your claim if you got in an accident due to drink and drive. Forget about the car insurance claim getting rejected, you will be thrown behind the bars!
5. Car ownership not transferred in the insurance policy
It's your responsibility to transfer the car insurance policy to your name, if you have bought a used car and vice versa. In case, the policy is not transferred to the current car owner, the insurance company will not honour any claim.
6. Not holding a valid driving license
If you want to drive a car, it is mandatory to hold a valid driving license in India. In case, you don't have a valid driving license the claim will be considered invalid and will be rejected instantly. All the more, it's you responsibility to disallow anyone else to drive your car who doesn't possess a valid license.
Keep the above-mentioned points in mind and avoid falling into a self-made trap. Buy car insurance online and say good bye to the hassle of paperwork.
