In order to avoid a situation where you are not able to make a car insurance claim, you should familiarize yourself with the reasons why even a genuine claim made on your behalf may get rejected.
Car insurance is mandatory in India and you buy an insurance plan mainly to secure yourself from heavy financial burdens that may levy on you alongside owning a vehicle. When you make a claim for a damage to your car, you expect an instant payback and if you are not being able to redeem your money, it can be very frustrating. Therefore, in order to avoid such a situation where you are not able to make a claim, you should familiarize yourself with the reasons why even a genuine claim made on your behalf may get rejected.
1. Driver Related Issues
Driving without a proper legal driving license or driving under intoxication are the two most common reasons why a claim in motor insurance gets rejected. The above actions are against the law and, hence, there’s not much an insurer can do for you at the time of claim.
2. Non-renewal of Policy
It is important that you renew your policy every year before it expires. A claim against a policy whose tenure has expired is never entertained. To approach your insurance provider with an expired policy at the time of making a claim would get your claim rejected.
3. Delay in Reporting the Accident
Insurance providers expect you to report a claim incident as soon as possible but also provide a cushion of window. However, if you take ever too long to make a claim and do not provide your insurance provider with the right documentation within the given time-frame, your claim may get rejected. If your car has been damaged, make it a thumb rule to first report it to your insurance company before you give it in for repair.
4. Adding Accessories or Modifying the Vehicle
A policy is renewed and automatically covers the components available in previous policy. However, if you wish to cover additional accessories in your policy which were not covered earlier, you must inform your insurer about it. Your insurer will include these components post a successful inspection and charging an additional premium. Failure to do so always results in rejection of claim for these additional components.
5. Driving Out of specified geographical Limits
If your accident has taken place outside of the geographical limit defined by your insurance policy, the claim does get rejected. Your motor policy includes the coverage of your vehicle on Indian territory and you will not be awarded a claim benefit against any mishap outside of country boundaries e.g. Sri Lanka, Pakistan, Maldives etc.
6. Wear and Tear of the Vehicle
Peeling of paint, degradation of tires etc. are a few common factors which come under normal wear and tear of the vehicle and are not considered under a claim benefit for your car insurance. Claim for your car is always against any accidental damage or a theft scenario.
7. Improper use of the Vehicle
Vehicle premiums are defined basis their usage as well. For instance, premium for a vehicle which is being used for private purpose is always different when the same is used for a commercial purpose. So, you cannot expect the insurer to provide a claim benefit if you change the usage.
Making a claim for motor insurance is the easiest and most basic of processes that people have to follow in order to get their money’s worth. Taking into account the above-mentioned reasons will only be beneficial for you, as you move forward to make a claim against your motor policy.
(By Tarun Mathur, Chief Business Officer-General Insurance, Policybazaar.com)