Rejection word itself is enough to panic most people. It is hard to get over the feeling of rejection. Whether it is about interview rejection, job rejection, or simply car insurance claim rejection. Rejections are tough to get through.
In some cases, the reasons for car insurance claim rejection is obvious. But there can be other reasons that are tougher to comprehend. Many people are unaware and uninformed about potential reasons due to which a car insurance claim may get rejected.
Rejection of car insurance claims are not rare. The reason for rejection is based on genuine reasons. Most of the rejections either take place due to the policyholder’s ignorance or negligence.
Hence it is advisable for policyholders to be well informed. People must be aware about what a car insurance policy covers and what not. This way, even before making the claim, a person will have a feeling of whether the claim is going to be accepted or rejected.
Let’s have a look at some of the common reasons based on which a car insurance claim may get rejected:
#1. Damage not due to an accident.
Car insurance covers damages occurring due to accidents only. People approaching the insurer for covering natural wear and tear is liable for rejection. Insurance policy offers coverage also for car breakdown. However, if a part of your car fails due to natural wear and tear, then the same will not be covered by the insurer.
#2. Damage repair done without informing the insurer.
Undertaking car repair work without informing the insurer is liable for rejection when insurance claim is raised. When one is involved in an accident, it is important to inform the insurer as soon as possible. Getting your car repaired on your own and informing the insurer later will do no good. The insurer can’t trace the accident and repair, and this can lead to rejection of a claim.
#3. Damage car remained un attended for long.
Not informing the insurer within the specified time frame is also a mistake. The above point #2 lays emphasis on informing the insurer. But it is also important to inform the insurer within a specified time frame. The insurer has a right to reject your insurance claim if you fail to inform within the set time period. One must try to inform the insurer within 48 to 72 hours of accident.
#4. Damaged car insurance is in someone else’s name.
Suppose one bough a second hand car. The car had a valid insurance with it. Most people think that this is all. But it is essential to transfer the policy from old owner to the new owner. Forgetting to transfer the insurance policy after buying a used car will lead to claim rejection. The insurer has the right to reject your claim is owner of car and policyholder is not the same.
#5. Car damaged in accident due to drunken driving.
Driving under the influence of alcohol or drugs is not allowed. Hence all accidents happening under drunken driving are not covered by car insurance. The insurer is genuinely right if it rejects the claim for the accident which happened while driving under the influence of intoxicants. The list of intoxicants are big, more common is alcohol, drugs, etc.
#6. The driver was not carrying a valid motor license.
Driving without a valid license is also not allowed. Even if one has a valid comprehensive car insurance policy, the insurer can reject the claim. If the accident happened when you or someone else was driving the vehicle without a valid license. Therefore, next time before going behind the steering wheel, make sure your license is valid. Also, never allow any person to drive your car without a valid license.
#7. Using your private car for commercial purposes.
One must not let ones private car to be used for commercial purposes. While the private car was on commercial use, and it met an accident, be prepared to face the insurance claim rejection. If one intends to use a private vehicle as goods or passenger carrying carrier, first buy a relevant car insurance policy. Car insurance for commercial vehicles are different.
#8. Car damaged or lost due to self-negligence.
If the insurer has reasons to prove that negligence of policyholder led to the theft/damage, insurance claim will get rejected. Insurance is meant to protect loss due to unforeseen circumstances. But if someone leaves the vehicle unattended, say in non-parking zone, the insurer can deny the insurance claim. One can’t have a reckless approach towards the vehicle just because you have a comprehensive car insurance policy.
#9. Consequential damages are not covered.
These are an indirect result of a direct loss. Suppose, you damaged your car by continuing to drive in a waterlogged area. In this situation, you should have stopped the car and called the insurer for towing assistance. But, as you continued driving your car which led to damage, the insurer has the right to reject your claim.
#10. Not informing the insurer about CNG/LPG installation.
It is good to know that you are a nature’s lover, and therefore, you have installed CNG/LPG in your car. But does your insurer know about this eco-friendly choice of yours? If you have installed CNG/LPG after buying the policy, it is your responsibility to inform the insurer about it. However, if you fail to do so, the insurer is right in rejecting your claim.
Though, it is good that you have a car insurance policy to protect yourself and your vehicle against unexpected accidents and risks, however, simply buying the insurance doesn’t make you or your car bulletproof. The insurance company will fulfill its promise only if there is no loophole from your end. Therefore, read the policy document carefully so that you get familiar with the claim related procedures and avoid rejections in the future. As we know, ‘rejection always hurts’.