Reasons Why Your Car Insurance Could Be Rejected?
Published On Aug 06, 2021, Updated On Aug 10, 2021
Know different reasons that can lead to car insurance claim rejection.
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To own a valid car insurance plan while driving in India is a legal requirement, according to the Indian Motor Tariff. Besides adherence to legal provisions, car insurance keeps you insured against damages or losses sustained by you and your car. Therefore, it is essential for every car owner to carry a car insurance policy and to avoid it getting rejected or invalid. Let’s discuss some common reasons that can lead to invalidation of your car insurance or rejection of your car insurance claim.
Why Your Car Insurance Could Be Rejected?
Here are a few reasons that could lead to rejection of your car insurance or claim:
1. False Claim Request
Car insurance plans are framed to compensate for the financial losses suffered by car owners. But, if a policyholder makes a false claim request and it is identified by the surveyor during the inspection, then the insurance company can reject your car insurance claim. Also, the insurance provider can put legal allegations on the policyholder.
2. Delay in Premium Payment
It is crucial to pay for insurance premiums timely. Paying the premium before the expiry date can bring several benefits like No Claim Bonus, etc. Generally, insurers offer a grace period to renew the car insurance plan even after the expiry date to avoid adverse circumstances. But, repeated instances or further delays in paying the premium can lead to claim rejection or insurance plan invalidation.
3. Hiding or Giving False Information
If you have made any modifications in your car, you should disclose those changes and intimate about them to your insurer as every modification can impact your policy premium. Hiding such changes can lead to policy invalidations or claim rejection. Also, you should provide the right and accurate information while applying for a car insurance plan as wrong information to get a reduced premium or for any other benefit can lead to claim rejection.
You may also like to read:- What Happens To Acko Car Insurance When The Policyholder Dies?
4. Not Following The Traffic Law
Any accident or mishap caused due to violation of traffic law such as under the influence of alcohol, intoxicating drugs, etc, are not entertained by insurance companies. On finding any such instance, insurers can instantly reject the claim or may invalidate the policy. Also, situations like hit and run where the driver runs away from the accident spot, etc., can leave a negative impact on the insurer and can reject the claim.
5. Violating the Claim Process
If the insured car sustains any damage or loss, there are specific steps for claim settlement that you have to follow. Every policyholder must follow the process without any sort of false play which may include submission of the required documents, accurate details of the accident, and so on. In case any policyholder fails to do so, the insurance company can look at it as a breach of compliance, and can reject his or her car insurance claim.
You should take different measures to prevent any situation that could lead to insurance claim rejection. However, an insurer can approve your claim based on the policy coverage specified in the car insurance plan, if you raise the claim for the right reasons. Hence, it is recommended to drive your car safely and responsibly and purchase a suitable car insurance plan for unpredictable instances and make the claim by keeping the above points in mind.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.