Reasons You Didn't Get 100% Of Your Car Insurance Claim
Published On Nov 04, 2020 6:00 PM By InsuranceDekho
There are several reasons because of which a car insurance claim can get rejected. In this article we list down the major car insurance claim rejection reasons.
Every year a huge number of car insurance claims are either partly or completely rejected by the insurance companies. This happens because of different reasons which are known to the policyholders and sometimes unknown. Here are some of the common reasons why insurance companies reject the claim. However, sometimes people find it difficult to understand why their insurance claim has been rejected. This article will provide insight and some common claim reasons that will help to understand how to file the claim successfully.
Common Car Insurance Claim Rejection Reasons
Followings are some of the common reasons because of which car insurance claims get rejected.
1. Accident Due to Policyholder’s Negligence: Car insurance claims can be denied if the insured in the car insurance company thinks that the policyholder has done something willingly that is beyond the policy terms. Such activities include drunk driving or invalid driving licence. If an accident takes place when the driver of the car is under the influence of alcohol or any other intoxicant, which is not only illegal, but in that case the insurance company has all the rights to reject the claim application and policy also. In addition if the car if the driving licence is fake expired or of a different category in that case also the claim is rejected.
2. No Proof of Accident: It is always advised if an individual is filing a car insurance claim then they are supposed to take photographs of the damages and the harm caused due to the accident. In case if the policyholder failed to do so before leaving the spot the insurance company may argue on the claim settlement. Followings are to be noted to ensure a smooth claim settlement:
- Inform the police and file an FIR.
- Arrange a medical aid in case of bodily injuries
- Make a note of the details like name phone number and address of the driver
- Make a note of the names and phone numbers of eyewitnesses of the accident
- Click pictures of the accident scene including injuries or property damage traffic signals and skid marks.
3. In Case Your Policy is Inactive: In order to avoid the benefits of the insurance coverage, the car insurance policyholder has to pay a fixed amount of premium to the insurance provider within the specified period of time. If the policyholder pays the premium amount before the due date the insurance company shall be liable to provide insurance coverage at the time of an unfortunate incident as per the policy terms and condition. However, if the policyholder failed to pay the car insurance premium before the due date for any reason then the insurance company will not be able to help the policyholder. And the claim will be denied.
4. Filing False Information in Insurance Policy: The agreement of insurance is always built and survived on trust between the insurance company and the policyholder. However sometimes by mistake, the policyholder fills in the wrong information in the application. Not providing proper details about the driving experience, previous car mishap records and related information. Increase after providing false information if the policyholder files a car insurance claim with the insurance and the insurance company finds out that the information provided was not true then the insurance company may deny processing the claim. Knowingly or unknowingly if the policyholder has provided some false information in such a scenario not only their claim will be rejected but the policy will also be cancelled because of providing false information.
5. The Car Used for Business Purposes: If the policyholder has opted up for personal use car insurance policy then the car is supposed to be used for personal use only. If an insurance company finds out that at the time of the accident the car was used as a commercial vehicle they have all the rights to deny the claim. The reason behind this is that the car used for business purposes is used frequently and has higher chances of getting involved in an accident.
This article tried to provide information about the circumstances in which the car insurance claim is rejected. It is important for the policyholders to make sure that they never fall into a category where their claim can be rejected. in such a way, they will be able to enjoy the benefits offered in their car insurance policy.
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Disclaimer: This article is issued in 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.