Believe it or not, car insurance companies do not like to reject motor insurance claims without a reason.
Seeing the first dent or scratch on your car can be heart-breaking, especially if it was caused due to someone else’s fault. But what’s more disappointing is when your car insurance claim is rejected by your car insurance company. Now, you may think you have done everything right while filing the motor insurance claim with the car insurance company, but your car insurance provider has reason to believe otherwise. Believe it or not, car insurance companies do not like to reject motor insurance claims without a reason. Buying a great car insurance policy is the first step, but to make the most of the car insurance policy you purchased, you need to ensure that you file your motor insurance claims carefully. If car insurance claims are filed correctly, you could get the entire amount from your car insurance provider.
Here are some factors that you can keep in mind to ensure your motor insurance claims are not rejected by the car insurance company.
1) Check Car Insurance Policy Status
Are you sure your car insurance policy was valid at the time the accident took place? If the event took place even a few hours after your policy lapsed, the claim will not be approved by the insurance company. Always ensure your policy is renewed on time to prevent rejections of claims.
2) Have A Valid Driving Licence
The first requirement for processing a motor insurance claim is that at the time of the accident the vehicle needs to be driven by a valid and effective driving licence holder. If your driving licence was not valid at the time of the accident, or if you did not have one, your car insurance company will not honour your request for claims.
3) Follow Road Safety Rules And Regulations
Your claim will be rejected if you were driving under the influence of banned substances such as drugs, liquor etc.
4) Do Not Make Repairs Without Informing The Motor Insurance Provider
Assume your car met with an accident and you got it fixed without informing your car insurance company. Later, you raised a request with your insurance provider to claim the amount spent towards repairs. However, this was rejected by your insurer. Are you wondering why? As the car insurance provider was not informed about the accident and the subsequent damage to your vehicle, they could not verify the authenticity of your claim due to which your claim was rejected. In situations such as this, always inform your motor insurance provider first, as they will send a surveyor to inspect the extent of the damage to your vehicle after which your vehicle can be sent for repairs.
5) Inform Car Insurance Provider About Modifications
When buying a motor insurance policy, always inform your insurance provider of any alteration/modification you may have carried out in your car, for instance, installation of CNG or LPG kit. Your claim settlement may be impacted if any major alteration carried out in your car is not endorsed in your policy document.
6) Transfer Policy To Your Name
When you buy a used car, one of the first steps you need to do is to transfer the insurance policy in your name within 14 days of the purchase. If you forget to transfer the car insurance policy within the stipulated time to your name, your claim may be rejected as you have no insurable interest in it.
7) Always Provide Honest Responses In Your Claims Form
Providing fraudulent/false information in your claims form is one of the top reasons your request for reimbursement can be rejected. For instance, if someone else beside the policyholder was behind the wheel, the insurance company should be notified about this. Moreover, do not modify your responses based on the assumption that your insurance company might not want to know minor details. Withholding information could be considered as good as providing wrong information.
While buying a car insurance is the first step towards keeping you and your car safe, just having an insurance policy is not enough. You should also aim to follow all the road safety rules and regulations and be a responsible driver.
Authored article by Vijay Sinha, MD & CEO of COCO by DHFL General Insurance