Reasons Why Your Car Insurance Could Be Invalid
Having a valid car insurance policy is the legal requirement for driving it in any public place in India, as per the Motor Vehicle Act. Therefore, it has become one of the essential documents for every Indian car owner. While buying a car insurance policy, you must remember the following key points so that your car insurance policy does not become invalid especially at the time of making a claim.
Why Your Car Insurance Could Be Invalid?
Driving a car without a valid driving license is illegal in India. However, despite being legally mandated, having a vehicle insurance policy has its advantages. You get insurance against physical damages, theft of your car, and accidental mishaps. A car insurance policy provides financial benefits in any such instance.
Car insurance is one of the highly bought insurance products in India and odds of its being approved are very high as compared to various other insurance policy types. Some very simple reasons may lead to rejection of your car insurance or your car insurance policy’s claim. Here we are discussing those reasons in brief:
1. Car Inspection
When we talk about the inspection of a vehicle, there are some scenarios wherein this process can be compulsory for determining the fitment and eligibility of your vehicle. Some of the insurance providers may insist you get the inspection of your vehicle when you take the policy. In addition to this, when you are renewing your existing car insurance policy, you might be asked for an inspection of the car. Some insurance providers inspect the vehicle free of cost, while others may charge fees for the same. The inspection of the car is done by authorized agents and officials.
2. False Claim
Insurance policies are designed for the benefit of the common man, which is based on good faith. Even if your single attempt to make a fallacious claim is identified by your insurance provider, you can lose the advantages of your car insurance and there is also a risk of legal charges that can be levied by the insurer.
3. Delay in Premium Payments
It is essential to make timely payments for your insurance premiums. Making premium payments before the insurance policy expires has many benefits, and No Claim Bonus or NCB is one of those. Generally, the insurance companies offer a grace period of some days. You can use this grace period in case of some unavoidable circumstances and delays in the premium payments could also be accepted under these circumstances. However, repeated occurrences or further delays in premium payments can lead to car insurance policy invalidation or claim rejection.
4. Not Mentioning the Modifications Made in the Car
If you are among those who have made modifications to your car, you must disclose these changes to your insurance provider. These modifications or changes can be functional or cosmetic. However, every modification you made in your car can impact your insurance policy. Therefore, you are required to disclose all the modification details to your insurance provider. There are high chances of claim rejection or policy invalidations if you fail to mention the details of modification to the insurer.
5. Invalid Car Insurance Policy
In case of an unfortunate instance, a claim is accepted only when you have an active and valid car insurance policy. Forgetting to renew a car insurance policy is one of the common scenarios. So, if your insurance policy is expired, the insurer for sure will reject your claim. Therefore, it is advisable to have an active insurance policy and get it renewed before its expiry.
6. Using Personal Vehicle for Commercial Use
If you use your car for commercial purposes and it gets damaged, the chances of claim rejection are high. This is because the private vehicle that is used for commercial purposes or business, is considered the out-of-scope case of a claim. If your insurer finds that your private vehicle was being used for commercial purposes, it can instantly reject the claim.
7. Fleeing from the Spot of the Accident
It is quite common to get panic in case of a sudden mishap. However, running away from the spot of an accident or taking away the car from there can leave a negative impact on the insurer. The reason for the same is very simple, insurers inspect the accident spot and the damaged vehicle thoroughly before approving any claim. If as an insured you are not present at this spot or you flee your damaged car from there, they can reject the claim.
8. Not Following the Claim Process of Your Insurance Provider
If the damages incur to the insured car, there are certain steps that you must follow. You are required to follow a process for ensuring the integrity of this incident for eliminating any kind of false play. This process can be the submission of the list of documents, accurate details of the accident such as the date and time of the accident, etc. If you fail to do so, the insurer can take it as a breach of compliance, and it can reject the claim.
9. Providing False Information
When you are applying for a car insurance policy, you must provide accurate details in the proposal form. Fabricated information just for the sake of reduced premium of the insurance policy can lead to claim rejection during the inspection.
10. Not Following the Law
No one wants to get involved in any type of road accident. However, it is natural and may be caused by a series of events. These events can be unfortunate coincident or your mistakes. However, they should not be because of not following any road law. Any accident that is caused due to breaking the law or driving the vehicle under the influence of alcohol or other intoxicating drugs is not entertained by any insurer. If the insurer finds any such instance, it instantly rejects the claim or may invalidate your car insurance policy.
The Final Words!
The bottom line here is that you have to be very careful, and you must take all the precautionary measures to avoid any instance that can lead to insurance claim rejection. However, the insurance company for sure approves your claim as per the coverage mentioned in your car insurance policy, if you claim for the right reasons. Therefore, it is advised to drive your vehicle safely and buy a suitable car insurance policy for any such unpredictable instances.
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