Motor Insurance Claim

11 Reasons Your Motor Insurance Claim Can Be Rejected

Vehicle owners frequently neglect to read the tiny print in policy documents and are unaware of their plans’ exclusions and coverage restrictions. Owners, therefore, have to know how to claim insurance after an accident.

Below are a few reasons why your vehicle insurer can reject your claim or pay it only partially:

  • Rejection Criteria: Vehicle insurance claims for cars, whether a car or a two-wheeler, are only considered if the damage is unintentional and results from accidents like fires, theft, or natural catastrophes.
  • Unawareness Of Policy Add-on Covers: Claims are often denied due to the policy not covering specific damages, necessitating separate compensation through add-on insurance. For instance, the base policy does not cover engine damage or depreciation losses. *
  • Commercial Use Of Vehicle: In the event of an accident, your motor insurance claim will be rejected if you purchased a car for personal use but began using it for business.
  • Vehicle Modifications: You must notify the vehicle insurance immediately if you install a CNG kit in your car, add extras, or change the vehicle’s body. Else, your claim in the event of an accident won’t be accepted.
  • Misinformation Or Concealment: Inaccurate disclosures or unclear facts during policy purchase, such as fabricated no-claim incentives or pre-existing damages, can lead to claim denial. 
  • Lack Of Insurable Interest: The owner still has the registration and insurance policies in his name. In this case, the claim will not be accepted by the insurer.
  • Delay In Notification: Your claim can be rejected if you wait to notify the insurance about the accident. T     
  • Car Sent For Repairs: It’s a common mistake to have the car fixed on your own and then notify the insurance company. It’s a mistake because the business finds it challenging to follow the incident and the repairs, which makes it challenging to evaluate the damage and approve the claim.
  • Guidelines For Policies: The claim will be rejected if you do not comply with the limitations of the use clause in your policy. The claim is likely to be rejected if the driver is not within the designated geographic boundaries or the vehicle does not meet the policy’s requirements. 
  • No Driving Licence: If the driver of the car did not have his licence at the time of the collision, the claim will be rejected. A valid licence that has not expired and is for the sort of vehicle it is designated for is also required.
  • Delay In Renewing The Policy: If an accident happens during this time and you forget to renew the policy, the insurer will not accept your claim.

*     Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

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