When you have bought the vehicle of your dreams, you must do a few more things to keep it secured. Taking a car insurance policy is the most important step.
When you buy a car insurance policy, you can be at peace knowing that you will receive funds if your vehicle suffers any damage and needs repair. You can use a car insurance calculator to determine the car insurance price and the car insurance coverage that you will receive. The coverage is the maximum amount you can receive if you file a car insurance claim.
What is a car insurance claim?
If your vehicle is damaged or gets involved in an accident, you will have to raise a claim with your insurer to get financial support. You can file a claim under your insurance for car policy as either a reimbursement claim or a cashless claim.
A cashless claim is the claim type when your car is sent for repair at a network garage of your insurance company. A reimbursement claim covers repairs to the car at a garage that your insurer doesn’t cover. You will be reimbursed for the actuals spent.
Unlike a few years ago, when you had to visit the insurance company’s office to lodge a claim, you can now file claims online. For instance, with the TATA AIG car insurance policy, filing a claim is quite easy and quick. You can get all the information like the car insurance charges and documents required online.
A claim you lodge may or may not be accepted. This decision is based on the report by the surveyor and the documents submitted. If the surveyor finds everything in place, the claim is accepted. However, there are certain instances in which the insurance company may reject your claim.
11 top reasons why car insurance claims get rejected are:
1. If you delay in initiating the claim:
All insurance companies have a specific period in which policyholders must raise their car insurance claim, for example, within two days of the incident. This period may vary among companies. If you don’t inform your insurance company within the specified period, your claim may get denied. Always file the claim for the loss within the time prescribed in the car insurance policy.
2. If you file false claims:
Insurance companies trust car owners to file genuine claims. However, when fraudulent claims or claims for intentional damage are filed, the insurance company has the right to reject them.
3. If you were intoxicated while driving:
Driving your car while being intoxicated is against the law. If your car is damaged because you drove in a drunken state, it is a violation and insurers will outright reject claims for an accident caused due to drunken driving.
4. If your policy has lapsed:
As a policyholder, you have to ensure you get your policy renewed on time before its expiry date. If your car insurance plan has lapsed or expired, the insurer will not agree to cover any damage to the vehicle. Therefore, keeping your policy current helps.
5. If you don’t hold a valid driving license:
You can drive a car in India only if you hold a valid driving license. If you or another person driving your car doesn’t have a valid driving license, the insurer can reject your car insurance claim.
6. If you don’t follow the policy conditions:
Every car insurance plan is subject to a few conditions. A violation of these terms and conditions can lead to a claim rejection. For instance, if the policyholder uses their private car for other purposes such as commercial transport and the car has met with an accident, then the loss or damage to the vehicle won’t be covered by the insurance company. Another example is the failure to provide an official crash report. This document is requested by most insurance companies to begin a claim.
7. If you have added modifications to the car without your insurer’s knowledge:
When purchasing an insurance policy, you should provide certain details about your car and its condition. If you have made any changes or modifications to the car during the policy tenure, then you must let your insurer know about it. If these modifications are discovered during the post-accident survey of the vehicle, your claim will be rejected.
8. If the loss arises due to post-incident handling:
If the vehicle is handled negligently after the accident, the car insurance policy will not cover such damage. Therefore, if you file a claim for these items, they will be rejected.
9. If the damage is shown to arise out of your negligence:
If your car gets damaged because of your negligence, the insurance company won’t admit the claim.
10. If you weren’t the owner of the car:
Your claim will be rejected if you don’t have proof of ownership. Even if you own a second-hand car and you don’t have the ownership documents transferred in your name, your claim will not be allowed.
11. If you get the car repaired without telling your insurer:
If your vehicle gets damaged, you must get it repaired after your insurer has inspected it. Your claim will get rejected if you repair the vehicle without informing your insurer.
Insurance for four-wheelers is one of the best ways to protect your vehicle. You can compare the different insurance plans to purchase an ideal plan for yourself. However, your damage won’t be settled until you file an insurance claim according to the conditions under the policy. Therefore, you must carefully understand the car insurance claim process. Then, the claim will be processed in a smooth fashion.
Some Frequently Asked Questions
Why are car insurance claims rejected?
Various instances can lead to your claim getting rejected, for example, if your car is damaged other than in an accident or natural calamity. This is because insurance companies generally offer cashless benefits or claim settlements only in the event of substantial damage.
Can a car insurance company refuse to pay a claim?
Yes, car insurance companies can refuse to pay your claim. Insurance companies will generally refuse to pay the claim if they find out that your claim was fraudulent. Therefore, you must ensure you file it accurately and for valid conditions.
How many times can we claim car insurance?
You can claim as many times as you can under your policy, although it is not desirable. Filing multiple claims can lead to a hike in your premium amount. Therefore, you must follow precautions to drive safely and avoid multiple claims.
What happens if an insurance company refuses to pay a claim?
This instance is called ‘insurance claim denial’. Under this condition, you can appeal against your insurer’s decision. For such an appeal, you must review your policy, collect the evidence to support your claim, and follow the process as stated in the policy.