Motor insurance claims being rejected on grounds of absence of e-passes? Here is what you need to do

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Updated: May 31, 2020 11:21 AM

Another reason for rejection is mis-declaration or concealment of material information by the policyholder from the insurer during the purchase of the policy.

Coronavirus Outbreak, Novel Coronavirus COVID-19, unlock 1, Motor Insurance, E-pass, emergency services, unauthorised movement, accident during lockdown, Motor Insurance claim, driver-based motor insurance, Motor OD floater policy, third party liability, own damage, IRDAI, Another reason for rejection is mis-declaration or concealment of material information by the policyholder from the insurer during the purchase of the policy.

Amit the COVID-19 lockdown, even though insurance claims especially with coronavirus cases have been taken on priority, there have been instances where other types of insurance claims are been rejected. For instance, during the lockdown, various insurers have been rejecting motor accident claims due to the absence of e-passes by the policyholder. According to media reports, some insurance companies have been rejecting motor accident claims by the policyholders due to the absence of e-passes.

Experts, however, suggest that insurance policies should be applied equally during normal circumstances as well as in special situations, such as the current lockdown. Additionally, insurers should ensure a seamless claims settlement amid the pandemic, and further, simplify keeping in mind customer comfort. Having said that, a few general insurance companies including ICICI Lombard claim that they have made the exception and are not rejecting claims on the grounds of absence of e-passes, making claim related experience more convenient for their customers.

Usually, claim rejections are done on account of expiry of documents such as driving license, insurance policy, etc. along with the exclusions specific to the policy purchased by the customer. Sanjay Datta, Chief – Underwriting, Claims and Reinsurance, ICICI Lombard General Insurance, says, “Use of a vehicle with expired documents contributes to the majority of the claim rejections even though the grace period available post expiry is also taken into consideration before going ahead with claim rejections.”

Another reason for rejection is mis-declaration or concealment of material information by the policyholder from the insurer during the purchase of the policy. For instance, mis-declaration of No Claim Bonus (NCB) at the time of sale of the policy and further default on NCB payment post intimation by the insurer could lead to rejection of the claim.

Here is how to avoid a claim being rejected

Policyholders can avoid claim rejections by ensuring that all required documents of the vehicle such as driving license, insurance policy, fitness certificate, etc. are valid and active. Datta says, “Being updated on exclusions in the policy and available options (such as the purchase of add-ons) is also essential to avoid claim rejections.”

Lastly, policyholders should declare all material facts such as NCB, modification done to the vehicle, etc. accurately when purchasing an insurance policy, to avoid the surprise of claim rejection.

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