due to rejection
Insurance claims for vehicles, be it a car or a two-wheeler, are entertained only in case of accidental damage due to natural calamities, theft or accidental fire.
Ignorance about the policy and add-on cover: a common reason for claim rejection And the complaints of the people are that some specific damages are not covered under the policy and need to buy a separate add-on cover. For example, engine failure or depreciation loss is not covered in the basic policy and you need a separate engine protector and zero depreciation add-on cover, says Tarun Mathur, CBO, Policybazaar.com.
Car sent for repair: A common mistake is to get the vehicle repaired yourself and then inform the insurer. “This is a mistake as it is difficult for the company to track and repair the accident, which makes it difficult to assess the damages and approve the claim,” says Pankaj Arora, MD and CEO, Raheja QBE General Insurance. This is why you should contact the insurer, so that they not only assess the damage but also provide roadside assistance and take the car to your partner’s garage.
Commercial use of vehicle: If you have purchased a car for personal use but have started using it for business purposes, the claim will be denied in the event of an accident.
Hiding or False Information: “If wrong disclosures or material facts are not disclosed at the time of purchase of the policy, such as no-claim bonus or falsification of pre-existing damages, the claim is bound to be rejected,” says Rakesh Jain, ED and Rakesh Jain. CEO, Reliance General Insurance. Similarly, if someone gives false information about the accident or damage caused while filing a claim, the same can be denied.
Lack of insurable interest: This means that the owner has failed to register and transfer the insurance in his name. In such case the claim will not be entertained by the insurer.
Vehicle Modifications: If you install a CNG kit, add accessories or make changes to the vehicle body in your car, you must inform the insurer immediately, otherwise your claim will not be accepted in case of an accident.
Policy Guidelines: “If you do not comply with the limits of the use clause in your policy, the claim will be rejected,” says Jain. Therefore, if you are not driving within the specified geographic limits or if the vehicle does not have the specifications listed in the policy, such as a particular engine capacity, the claim is likely to be denied.
No Driving License: If the person driving the vehicle does not have his/her license at the time of the accident, the claim will be rejected. In addition, he must have a valid license that has not expired and is for the type of vehicle specified. For example, if he has a license to drive only two wheeler but gets into an accident while driving the car, the claim will be rejected.
drunk driving : Another obvious reason for denying the claim is drunk driving. Since it is illegal to drive under the influence of alcohol in India, any claim arising out of an accident caused by drunken driving will be rejected.
Information Delay: If you stop informing the insurer about the accident, there is a chance that your claim will be rejected. The time frame is short, typically 24-48 hours, and you should ensure that you notify the insurer within this period.
Delay in renewal of policy: If you forget to renew the policy and there is an accident during this period, the claim will not be entertained by the insurer.
Be aware of these exclusions
A basic insurance policy only covers accidental damage to the body and engine. Here’s what it usually doesn’t cover:
Consequential Loss on account of depreciation: Damage caused by the action of the policyholder or third party and not due to uncertain event is not covered. “For example, engine damage due to hydrostatic loss is common during monsoons. The damage here is not caused by floods or rain, but because someone cranked the car in a waterlogged area. It will not be covered by the insurer,” says Arora.
Voluntary Deductible: “If you opt for a voluntary deductible to reduce your premium, you will have to pay the mandatory deductible amount plus the voluntary deductible amount at the time of each claim,” says Arora.
Mechanical or Electrical Breakdown: motor insurance Policies do not cover any mechanical or electrical problems.
Consumables: Things like engine oil or lubricants are not covered in the basic policy, nor are any plastic parts or tyres. Wear and tear: Any damage caused to the vehicle during normal use, such as worn tires or tubes, is not covered.
Key/Lock Replacement: Today, cars have technologically advanced keys and keyless locking systems, which can be costly to replace. It will be covered only if you have add-on cover for it.
Return to Invoice: A basic policy will get you only the Insured Declared Value of the car (due to depreciation), which is less than the on-road value of the car. You can bridge the gap with an add-on cover.