5 Reasons Why Car Claim Gets Rejected?
Rejections are never easy to take! And when it is about car claim rejection it is even worse for it destabilizes your financial equilibrium. My advice: Stay away from the situations which might lead to car claim rejection. Nip in the reasons in the bud itself.
1. Filling a Fraudulent Claim
If you're making a claim, be sure to include all relevant information of the accident, and avoid exaggerating the damages, to stay away from the legal consequences of fraud.
Filling a fraudulent claim not only leads to claim rejection but can also have serious legal consequences too. On the contrary, you could also be liable to pay the insurer for extra costs spent in investigating the fraud.
2. Keeping Quite About Modifications
Don’t try to hide anything from insurance company while buying motor insurance. If you make any modification in your car’s body, such as engine upgrade, addition of alloys, etc. then let your insurer know. Any claim you make could be turned down if the insurer finds out that any discrepancy in information.
3. Breaching Policy Conditions
Most policies spell out exactly how you are covered, and against what. If you had bought a car insurance policy for your personal use and you are using it for commercial purposes, e.g. taxi service, then your insurance claims may be rejected. If you intend to use your car for commercial purposes, then you should buy a commercial car insurance policy.
4. Not Reporting About the Accident on Time
If you delay reporting an accident to your car, your insurance claim may be rejected. Normally, insurers allow a 48 hours window for accident to be reported. Some insurers may allow some relaxation in the time frame during which accidents can be reported, but beyond a certain time limit, needless to say it may lead to rejection.
5. Relying on a Lapsed Policy
Watch out for this, as one missed premium payment can jeopardize your whole coverage. It is extremely important that you pay premium on time and also renew your policy timely. Opt for sms or email reminders to keep you on top of things.
Let’s pledge to comply by all these rules and never face any claim rejection, ever.
- Transferring Car Insurance from One Person to Another
- By PolicyBazaar -
-
Updated: 01 March 2021 -
- 230884 Views
Transferring Car Insurance from One Person to Another In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming increasingly common for people to purchase second-hand...
read more - 9 Secrets That Your Motor Insurance Provider Won’t Tell You
- By PolicyBazaar -
-
Updated: 10 June 2020 -
- 213375 Views
9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall sa...
read more - Money Saving Advice for All Car Owners
- By PolicyBazaar -
-
Updated: 25 January 2021 -
- 200329 Views
Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Owning an...
read more - Comprehensive Car Insurance Vs Third Party Car Insurance
- By PolicyBazaar -
-
Updated: 08 March 2021 -
- 157383 Views
Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive c...
read more - Types of Motor Insurance
- By PolicyBazaar -
-
Updated: 09 February 2021 -
- 115847 Views
Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps...
read more