When your car meets with an accident, not just arrives the danger of physical hard and the unavoidable harm to the vehicle, but the likelihood of the insurance company rejecting the claim is also the reason of irritation. Though it is a common practise for the insurance company, but most of the time the reason for rejection is genuine. Let us understand the reason behind rejections of motor insurance claims.
Below is the list of exclusions under a motor insurance policy:
- Any accidentbeyond the geographical area of operation
- Consequential loss, normal Wear and tear
- Driving without a valid license
- Driving under the influence of liquor/ drugs
- A vehicle being used as over and above the limitations specified in the rules.
- Mechanical or electrical breakdown, failure, etc. Which fall under the specific exclusions
- Willful damage, hire or reward
- Damage to tires and tubes unless the vehicle is damaged at the same time or the vehicle is stolen
Let us list down the reasons why a car insurance claim can be rejected:
- Not informing the insurer within the limited timeframe: in the event of an accident, if you do not inform the insurer within the set timeframe, i.e. between 48hrs to 72hrs.
- Not transferring the policy documents in your name post purchasing a used car: once you have purchased second hand vehicle, appropriate changes needs to be done in the RC book. If name on the RC book does not match with the name on the car insurance policy, the claim would be rejected.
- In the event if the car is damaged due to normal wear and tear issues, then it won't be covered under the policy.
- If the vehiclepurchased (which has been bought for personal use) is used for commercial reasons such as - taxi services, then the claim would be rejected.
- In the event, if the person driving the vehicle was under the influence of alcohol or drugs, the claim would be rejected.
- If the person driving the vehicle does not have any license, then the claim would be rejected.
- Consequential losses which result from direct loss shall not be covered.
- If the customer has installed a cng/ lpg kit and not informed the insurance company about the change made in the vehicle.
- Any damage due to mechanical or electric breakdown.
- If the vehicle is stolen then A fir is mandatory. If you fail to produce the said documents then your claim might be rejected.
- If you have fixed, repaired or mended certain damages without informing the insurance company, there is a possibility of the claim getting rejected.
Our aim is to protect you and your vehicle against any loss due to an accident. However, there might be some circumstances which may lead to rejection of claim due to certain terms and conditions that the insurance company follows. It is vital to read the policy terms and conditions (policy wordings) carefully, so you are familiarised with the claim related procedures and documentations.