APN News

  • Wednesday, March, 2021| Today's Market | Current Time: 04:44:09
  • Be Aware of the Reasons That Can Lead to Rejection of Your Motor Insurance Claim

    Published on January 25, 2021

    Navigating through all the confusion and jargon, when you buy a motor insurance policy, it helps you keep your vehicle secured and safe from various kinds of perils. Vehicle insurance is financial assistance in times when there is damage to your vehicle or a third person and property. The Motor Vehicles Act makes it mandatory to have a general insurance policy for your vehicle. While a third-party policy is a minimum requirement, it can be enhanced to include own damage using a comprehensive cover. 

    But not all claims are accepted by insurance companies. When you make an application, the claim is accepted only when it is successfully verified by the insurer. This article describes the various reasons that may lead to a rejection of your claim application. 

    Not having updated information

    Your insurance company needs up-to-date information about the policyholder, the insured vehicle, and the incident of the accident. If you fail to furnish accurate information, it can be considered as a case of misrepresentation and the claim denied on those grounds. 

    Illegal acts

    Any vehicle insurance claim made for insurance involving an act that is considered an offence by the law is rejected by the insurance company. Drunk driving, talking on the phone while driving, driving without a valid copy of license are all deemed illegal acts. Any claim for damages made for these acts leads to a repudiation of your claim. 

    Failing to renew the insurance policy

    To be covered under the insurance policy, you need to renew the policy timely. On the expiry of the policy, no coverage is offered by the insurance company, even during the grace period. Thus, to enjoy continued benefits without a break in coverage, it is best to renew the insurance policy well in advance.  

    Fraudulent claims 

    Since the contract on insurance is based on utmost good faith, any fraudulent claims are rejected by the insurance company. All the claims are verified by the insurer. Any incidence of fraudulent claims has the impact of rejection of your claim as well as liable to legal prosecution. 

    Driving without a valid license

    A common cause of rejection of insurance claims is not having a valid driving license. If the driver does not possess an active driving license, it can lead to denial of the claim. Thus, make sure that you have your driving license with you at all times to be eligible for an insurance claim. 

    Misinterpretation of insurance coverage

    No insurance claim shall be paid for that than what you have purchased, i.e. coverage is only available for what you pay. For instance, you purchase a third-party policy, then you will not be able to claim for your own-damages. Similarly, coverage under comprehensive plans are subject to the terms and conditions and the add-ons opted for.  

    These are some of the probable causes of why your insurance claim application may get rejected. Remember to be aware of these cases and ensure you do not make a mistake to avoid rejection and the financial burden of repairs or damages. Also, it is advisable you thoroughly read the policy document before purchasing your insurance cover. Stay informed and stay protected.