6 Reasons Your Motor Insurance Claim May be Rejected

18-04-2015 / admin / 0

Buying a vehicle is a long-term decision and it needs the most expensive monetary investment. So, buying a motor insurance policy online is the best way to protect your vehicle. Third party vehicle insurance is compulsory in India. It is an insurance against damage to third parties and their valuables because of policyholder’s vehicle.

Generally, majority of people are not aware about what gets insured with a car insurance plans and end up wasting their hard-earned money and time. If your claim gets rejected, you feel frustrated. Therefore, customers should understand that a vehicle insurance plan covers only accident, third party liability, theft, collision and damage due to natural calamities.

It excludes damages due to breakdown, wear and tear etc.

Person may feel safe after buying a motor insurance policy online but there are various reasons why your claim may get rejected.

  • Repair the vehicle after accident by their own and then inform the insurer about the settlement  

Insurance companies in India cannot trace back the accident and repair. So, it is difficult for them to approve the claim. Insured should always contact the insurer before getting the vehicle repaired. Authorized personnel from their organization inspect the vehicle, estimate the extent of loss and then offer you the best deal for damage repair.

• Forget to transfer your name in the policy document

Usually, motor insurance is in the driver’s name and hence, transferring your name in the policy copy is important. If transfer formalities have not been completed, then the plan is of no use for auto owner and insurer is unable to help you.

• No coverage for a CNG/LPG kit under insurance

If you fail to do this job, then you may face claim rejection irrespective of whether the loss or damage is associated to the kit or not.

• Driving person must have a valid driving license at the time of accident

If it is proved that the driving person is under the influence of drugs or alcohol, then it lead to the claim rejection. You may face serious legal consequences if you don’t have a valid driving license at the time of accident and loss will not be covered by auto insurance.

• If vehicle is private and used for commercial purpose

Situations like these may result to motor insurance claim rejection. Hence, if you have registered your vehicle as a private car, then don’t use it for commercial purpose.

• Notify the claim within given timeline

If you don’t notify the claim within certain timeline, then insurance companies in India cannot approve the auto insurance claim.

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