Decoding Insurance

Reasons your motor insurance claim can be rejected

Investing in a comprehensive motor insurance policy helps you protect yourself from the financial constraints that come with having a vehicle. Further, as we all are aware, the Motor Vehicles Act of 1988, makes it mandatory to protect a car with an insurance cover in India. The law mandates that all vehicles on the road have a minimum level of insurance protection, known as third-party liability insurance. 

While buying a policy the first step is to get an adequate insurance policy for your car, but, in order to get the most out of it, you must file your motor insurance claims carefully so that it doesn’t put you in a financially difficult situation in case of damage to the vehicle. When we invest in a car insurance policy, we are presented with various  terms and conditions that are listed in the policy documentation. However, we frequently fail to read the fine prints which often convey crucial information. Through these terms and conditions the policyholder gets to know what is and isn't covered under the insurance as well as what could lead to your insurance claims being denied. This means, despite having a car insurance policy to cover the damage, the car owner may have to pay a significant amount of money out of his pocket. 

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Therefore, to avoid such situations, following are some of the crucial conditions that one should not overlook. 

Missing timely renewal of policy

The most crucial factor one needs to consider is that it’s necessary to renew your motor insurance policy on time in order to remain covered by the policy. Even one missing premium can jeopardize your entire claim procedure, as any loss during the period will not be covered by the insurer. Thus, to avoid getting into such situations make sure to renew your policy on time. Further, to not miss on these premium payments insurers send reminders by emails and SMS to the registered email ID or the mobile number.

Adding Accessories or Modifying the Vehicle

Moving forward, you must inform your insurer of any additional accessories or changes made to your car prior to obtaining your insurance, as your premiums would ideally be based on the modifications. As a modified vehicle or one to which you may have added accessories carries a higher premium. Considering that, the insurance company might refuse your claim, if during an accident the insurer finds any unknown additional modifications. 
   
Driving under intoxication

The most usual causes for a claim being denied in motor insurance include driving without a valid driver's licence or driving when intoxicated. Further, drunk driving is a serious legal infraction that, if discovered, can result in criminal charges. Also, in the event of a third-party claim, the insurance will not reimburse the costs due to the drunk driving issue.

Wear and Tear of the Vehicle

Dents, peeling paint, and tyre degradation, are all considered normal wear and tear of the vehicle and are not taken into account when filing a claim for your car insurance. 

False Declaration

When purchasing an insurance policy, the buyer must declare the intended use. Your claim to insurance will most likely be refused if the car is utilised for business purposes. Further, at the time of the damage if the insurer found out the vehicle was overweight at the time of the collision, the insurance company can deny the claim. 

Delay in Reporting the Accident

Insurance companies often allow you a 48-hour window to file a claim. If you wait too long to file a claim and fail to present the necessary documents to your insurer within the specified time frame, your claim may be denied. If your vehicle is damaged, make it a thumb rule to notify your insurance provider first before taking it in for repairs. 

Thus, while investing in a motor insurance plan you must make sure to go through the terms and conditions to know the reasons your claim could be rejected so that in case of an emergency you don't have to shell out money from your own pocket.  


 

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