In order to ensure that a motor insurance claim is not rejected, a policyholder must understand the exclusions on coverage and follow all the required compliance processes. Insurers can reject for several reasons such as driving without a valid driving licence, delay in filing the claim, violation of traffic rules, participating in a car rally, etc.
Tips to avoid claim rejection
To avoid delay in claims, it is important to inform the insurance company immediately. If the vehicle is stolen or involved in an accident, the policyholder must file a First Information Report with the nearest police station and submit a copy to the insurer. A surveyor from the insurance company will access the damage, estimate the repair cost of and notify the insurance company. Moreover, it is always better to get the repair work done from a workshop approved by the insurer for faster claims settlement.
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If you fit a CNG kit in the car, inform the insurance at the time of renewing the policy. The insurer will then add it in the cover and fix the premium accordingly. In case the addition is not declared to the insurer, then the claim will be rejected. If the insured vehicle is declared as personal and used for commercial purposes, then the insurance company will reject the claim.
Insurers will reject claims if the accident occurs outside the geographical area defined by the company. Driving under the influence of alcohol or drugs will also lead to rejection of claims. Read the insurance policy terms and conditions carefully to avoid any claims rejection.
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Go for a comprehensive cover
A comprehensive motor insurance will cover own-damage as well as the mandatory third-party insurance. Third-party insurance only covers the damage done by one’s insured vehicle to other vehicles, property and people and the rates are fixed by the insurance regulator. A comprehensive car insurance will cover damages due to natural calamities, fire and acts of vandalism.