Due to the current pandemic situation COVID 19 we are working with reduced staff. Policy related services might take some time, in the interim you can click here for reaching out to us and to know more about COVID-19 related queries, click here

Here’s why your car insurance claim might be rejected!

Rejections, in general, are disappointing. Aren’t they? Car insurance claim rejection is no exception. When you file a claim you expect a quick payback. When you are not able to claim it, it can become very frustrating! Many people label the insurance company as a fraud for not clearing their claims when the mistake is clearly on their side. There can be many reasons why your insurance claim is rejected. Let’s find out what these could be and how best you could perhaps avoid finding your claim falling into one of these categories.

DUI and Driver Related Issues

Driving under the influence of alcohol or not possessing a valid driving license during an accident is one of the most common reasons why your insurance claim gets rejected. This is prohibited by law and there is nothing much an insurer can do.

Non-Renewal of Policy

Needless to say, we must renew our car insurance policy before it lapses. You cannot make a claim against an insurance policy that has expired. It will be rejected by your insurance company.

Delay In Reporting The Accident

Insurance companies expect you to report the accident within a stipulated time (except special cases). Many people take their own sweet time to file a claim with the necessary documents. This leads to rejection. If your car has suffered damages make sure to report to your insurance company as early as possible.

Repairing Your Car On Your Own

Another common mistake made by many people is repairing the car on their own without informing the insurance company and then submitting the claim for a reimbursement. Doing so will make it hard for the insurer to assess the accident and damage, often resulting in rejection of the claim. . Always remember to inform your insurance company before repairing your car.  The insurer will assign a surveyor to assess the damages and help you get a fair claim for repairs.

Undeclared Vehicle Modifications

If you have added a new accessory or made modifications to your car like adding CNG kits, body kits, alloys, etc… you need to inform your insurance company. Your policy covers only the existing components. Failure to do so will result in the rejection of the claim for additional parts.

Driving Outside The Geographical Area

The insurance company would be justified to reject your claim if the accident has occurred outside the specified geographical area. Please read the terms and conditions carefully to know about the specified geographical limits.

Improper Use Of The Vehicle

Vehicles are classified as private and commercial and the insurance premium differs for each. If your vehicle is registered as private but you are using it for a commercial purpose, your claim might be rejected in the event of an accident.

Making Exaggerated Claims

If the insurance company finds that you are making fraudulent or exaggerated claims, it will be rejected. You might also end up facing legal charges for doing so. It is important to include only relevant information about the accident. 

No Transfer Of Ownership

If you have purchased a used or second-hand car don’t forget to transfer the car insurance policy to your name along with the registration certification. In case of a claim, if the policy is still in the name of the former owner, your claim will be rejected.

Now that you are aware of the circumstances that might make your car insurance claim rejected, we hope you will pay more attention to these common errors and avoid making them. Do take care with our tips from now to enjoy the insurance benefits and remain stress-free.

For hassle-free car insurance opt for Cholamandalam car insurance.

Toggle Widget