Here are ten reasons why motor insurance claims get rejected
Here are ten reasons why motor insurance claims get rejected 28th December 2021
We all know motor insurance has been made mandatory in our country. The purpose of purchasing car insurance coverage is to assure financial protection for the vehicle if it is involved in an accident.
When you file a claim with your insurer for automobile damage, you expect them to reimburse you as soon as possible. There are three possibilities in that situation: your claim gets granted, your insurance company may request further information, or your claim gets denied. And often, motor owners fail to get their car insurance claims resolved to their satisfaction.
If you’re facing a similar circumstance, you might want to investigate the following causes for claim denials.
1. Driving while intoxicated:
If the driver engages in driving under the influence of alcohol or other intoxicants, in that case, the insurer will deny the claim.
2. An unreal claim of the No Claim Bonus (NCB):
The insurer refuses any claim for NCB falsely declared and cancels any benefits under the policy’s damaged section.
3. Unidentified or unauthorized driver:
The claim gets rejected if the driver doesn’t possess a valid driver’s licence or if the permit is fraudulent, expired, or for a different vehicle class. This can also happen if someone besides the registered owner is driving it.
4. Delay in paying the premiums:
Go through your policy to find if it grants you a grace period to pay the premium beyond the deadline. Not paying premiums on time denies the claim and is one of the most common reasons. Avoid delays and buy motor insurance online for convenient paying options.
5. If there is no evidence to prove the crash happened:
Having no photos of the scene or any other documentation of the collision or car damage may force the insurer to deny your claim.
6. Claim of non-accidental loss:
The insurance doesn’t cover the wear and tear of your vehicle. Therefore claiming any damage that isn’t accidental might result in the claim getting rejected.
7. Confidentiality of information:
When you buy motor insurance online, you must provide the insurance company with every personal detail and update the same if required. This includes your name, address and any past car accidents. The insurer possesses the power to reject your claim due to non-disclosure.
8. Automobile not appropriately parked:
If your vehicle was not in a secure location during the time of theft or crash, your claim gets denied. Therefore, the insurer will always ask if you had parked your car correctly.
9. Missing monitor or safety device:
Claims get denied if you haven’t installed alarms, locks or tracking devices in your vehicle despite being mentioned.
10. Ongoing inspection:
Most insurers demand that your motor be examined before purchasing insurance. It lets them know of all harm that has already occurred. Insurers have the power to reject your claim at any point during the insurance claim procedure if you fail to follow this protocol.
After a vehicle accident, the last thing you want to deal with is an insurance claim denial. Repairing an automobile may burn a hole in your pocket without insurance plan coverage. Focus on the points mentioned earlier to reduce the risk of a rejected insurance claim. Check the reviews of other customers for their claim settlement experiences with insurance companies before you buy motor insurance online. So, follow the above tips to avoid the situation that leads to denial of your insurance claim.
To buy motor insurance online, click HERE .
Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.