Main menu


Common reasons for refusing to claim car insurance


Common reasons for refusing to claim car insurance

Buying insurance for your car is important. If your car is refused insurance, it may affect your bank balance as well as your mental health. Read this article to find out the main reasons for rejecting the car insurance claim.

Car insurance is really important to ensure that you do not suffer any financial loss if your car is damaged by natural disasters, accidents or thefts. You really don't want to leave your precious car vulnerable. Car insurance can be made in two ways, namely cashless and pay

But sometimes the claim for insurance on your car gets rejected which just puts you down feeling frustrated and un motivated. Your car insurance company can reject your claim for policy or other reasons.

Main reasons for refusing to claim car insurance

Many of us do not realize why car insurance claims are rejected. This can happen for many reasons and disadvantages. By recognizing the points mentioned, you can avoid making mistakes and get the claim:

being dishonest to the company

All insurance is based on good faith. This means that one should not make a fake claim for profit. If the insurance company finds your claim to be false or fraudulent, it will reject it and may take legal action against you. It is important to be completely honest with the company. The company is likely to ask you appropriate questions and documents. For these reasons, you should always tell the claimant the truth.

Non-disclosure of amendments

Everyone likes to modify their car. You need to inform your insurance company every time you modify your car. If you do not report your car to the company, it is involved in an accident, there are chances that your insurance company will reject your claim.

You may also want to read: Pay while driving car insurance: meaning, work and benefits

Disobeying rules and regulations

There are specific rules to follow such as underage driving, drinking and driving. Your claim will be rejected if you disobey such rules and allow a minor to drive your car or drive drunk. It is totally against the law and the accidental damages will not be entertained by the company.

Expired policy

As an owner, you have the right to claim insurance only if you have the right policy. If your policy expires or expires, the Company is no longer legally obliged to consider your claims or pay any damages. The company can reject your claims if your car's insurance expires.

Claims outside the scope of exclusion

Each company comes with exceptions that specify cases where claims will not be filed. The illegal use of the car and its expulsion from the geographical area are some of the most common exceptions. If you claim these exceptions, the policy provider can reject your claim. It is recommended that you read the terms and conditions correctly and not claim such claims.

Remove your car from the scene

It is very common to panic during an accident. But in any case, you should not run away or remove your car from the place. According to the claim process, most car companies inspect accident sites. If you take your car home, your company will certainly deny your claims. In order to prevent this, you should not panic during accidents and leave your car as it is.

Take away

Claiming car insurance is a difficult procedure, but for your safety and preventing the rejection of the claim it is important to follow the correct regulations during each stage. Keep in mind the above reasons and follow the appropriate rules and regulations. Renew your policy from time to time and inform the company of every change you make with your car. If you make fewer mistakes, your company will certainly claim your insurance.

Read also:

How to file a car insurance claim for a special damages policy?

Tips to keep your car parked in the best condition

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.

Reasons to renew your car insurance policy on time

Here are some reasons why you renew your car insurance plan on time:

1. To comply with car laws

Each car owner must carry a valid and active car insurance plan with at least third-party coverage, according to the Indian car tariff. This means that active car insurance must be held all the time while driving. Failure to renew your plan on time will render your insurance plan inactive that will make your driving illegal because driving a car with an expired policy is a violation of traffic laws. If you are arrested by the police for driving a car without an active insurance plan, you can be charged with Rs. 2,000 and/or imprisonment for a maximum of three months.

2. Keeps coverage active

The car insurance plan gives coverage in the form of many additional benefits and covers such as no bonus claim (NCB), cash repair feature, zero consumption coverage, and so on. This coverage will be available so that your insurance policy remains active. Therefore, you need to have an active policy cover to keep taking advantage of these benefits that you will have to continue renewing your plan on time. Failure to renew your car insurance plan on time will break your coverage and your insurance company will no longer be responsible for covering your financial obligations arising from your insured vehicle.

3. Prevents an increase in premium

If you fail to renew your car insurance policy, a break can lead to an increase in your premium. This can happen as you will have to buy an insurance policy on cars from scratch that can lead to an increase in your expenses. In addition, your insurance company will increase your premium when you recognize your expired insurance policy. Also, with the policy expiring, you will also lose your NCB which can lower your insurance premiums, if you have renewed your insurance policy on time.

4. Sound bonus no claim

Each car insurance company rewards policyholders for not making any claim in the policy year with a reward known as the No Claim Bonus (NCB). This feature is accumulated with consecutive profit-free years ranging from 20% to 50% after five years of continuous policy. You will get a premium discount equivalent to earning the NCB percentage. However, insurance companies are granted a 90-day grace period after the expiration date to renew your plan, but NCB remains intact only until that period. If your policy expires, you can lose the No Claim Bonus (NCB) feature.

5. Ensures smooth policy renewal

When you get your car insurance policy renewed in a timely manner, in such cases, your car is not subject to any claim inspection and the entire renovation process becomes hassle-free. But, if you fail to renew your plan in time, you are looking for being a neglected car owner by your insurance company and wants to check your car when requesting a car renewal that can create a problem not Unnecessary for you, you can also discover some damage or wear and tear from your car that can end up limiting the declared value of your car insured (IDV) or increasing the premium.

You are now in the first article