For any motor vehicle owner, an accident can be an unsettling experience. Though road mishaps can't always be controlled, you can ensure other factors are in your favour. One of these is the motor insurance policy. A car insurance policy provides you with the peace of mind that, even in the event of an accident, you can rely on your insurance provider. But what if your claim gets rejected?
See what happened with Brunda Murthy. Brunda, a 32-year-old corporate employee, loves travelling. A few days ago, a minivan hit her car. Though unhurt and initially relieved that her insurance would cover the damage, her claim was shockingly rejected. Why? Her licence had expired. A simple lapse left her with heavy expenses.
Can a Car Insurance Claim be Rejected?
Yes, even with a car insurance policy, claims may still be rejected. There are various reasons behind it. At Generali Central, we urge all our customers to be mindful of instances that can lead to car claim rejection. Here’s a clear explanation on how to avoid such a situation and ensure hassle-free claim settlement. Take a look at the top 7 reasons why your claim may get rejected.
1. Driving Without A Valid License
Having a valid driving licence is mandatory in India to drive motor vehicles on roads. A driving licence is valid only for a specific period. You need to renew your driving licence to comply with legal requirements and your insurer's terms.
If the mishap occurred while the insured vehicle was being driven without an active licence, the claim will likely be rejected. So, make sure to check the expiry of your driving licence and get it renewed before expiry.
2. Not Having an Active Policy
A motor insurance policy has a defined tenure. You must renew the policy before expiry to continue enjoying its benefits. Raising a claim when the policy has expired provides you with no coverage. Motor insurance claims are valid only under an active policy.
Your insurance provider will typically notify you before your policy expires. Even after the policy expires, you get a 30-day grace period. During this tenure, you can renew the policy. Once the grace period is over, you will need to buy car insurance again.
Tip: Consider purchasing a multi-year policy to avoid the need for frequent renewals.
3. Driving While Intoxicated
Driving under the influence of alcohol or intoxicants is both illegal and against insurance policy norms. Any damage to the vehicle or life while driving drunk is not covered, even under the best auto insurance. In such a case, if the claim inspection reports a drink-and-drive case, the claim is rejected. So, it is always recommended to drive safely!
4. Hiding Vital Information
Sometimes, people may hide vital details from the insurance company. It may be regarding the past claims, insurance history, or the current accident. In all such cases, the insurance claim may get rejected. Furthermore, non-disclosure of information also leads to a breach of trust between both parties, which may affect future claim settlements as well.
5. Violating Policy Terms
Different motor insurance companies have their own set of policy rules. It is essential to adhere to the terms of car insurance plans to receive the maximum benefits. Reading the policy documents will provide you with a detailed understanding of the policy's terms and conditions. Violating norms may lead to claim rejection.
6. Choosing Unauthorised Services
Repairs at unauthorised service centres are usually not covered, and related claims may be rejected. Hence, raising such claims may get rejected. It is essential to check the authorisation of the service centre and only then proceed with the repair works.
Tip: You may choose cashless services at a network garage for a hassle-free claims settlement! Generali Central allows you access to over 6500 partner workshops all across India for cashless claim settlement, and you can easily find a network garage near you.
7. Reporting Late
Your insurer may define a timeline under which you must report the accident or mishap. It may be 24-48 hours after the incident. If you report late, the claim may be rejected due to delayed reporting or suspected fraud. Therefore, ensure that you notify your insurance company within the specified timeframe.
To learn how to file a car insurance claim easily, click here.
Tips to Avoid Claim Rejections
The aforementioned situations, which lead to claim rejections, can usually be avoided. You just need to keep track of certain factors for a hassle-free claim settlement. This includes keeping your licence updated, which is important not only for insurance claims but also for legal compliance. Therefore, it is essential to update your licence on time to avoid potential legal issues.
Additionally, reading the fine print is crucial to fully understanding your policy. Comparing quotes for car insurance plans may be time-consuming. However, skipping it is never a good idea. When purchasing the policy, ensure that you disclose all the necessary details as requested by the insurer to avoid future complications. It is important even when you get car insurance online. In the event of an accident, be sure to notify your insurance company as soon as possible to ensure a timely claim settlement.
What's Not Covered in Your Policy?
You may be aware of the term “exclusions” in a car insurance policy in India. These are the conditions not covered even in the best car insurance. So, if you raise claims for exclusions, the claim may get rejected. Read on ‘what does car insurance not cover”:
- General wear and tear that occurs naturally over time. Vehicles are bound to depreciate over time and hence are not covered under the policy.
- Electrical and mechanical issues of the vehicle are also not covered.
- Consequential damages that occur due to negligence are also not covered.
- Damages due to reckless driving or participating in racing are excluded from the policy coverage.
- Intentional damage to the vehicle is also not covered under the policy.
Tip: You may purchase various add-ons for extended coverage in your car insurance. Popular add-ons include engine protection, roadside assistance, and zero depreciation cover, among others.
Conclusion
Claim rejections are something no vehicle owner expects. However, car insurance claims may be rejected for various reasons, including an invalid policy, an expired driving licence, or late reporting of the accident. Therefore, it is essential to review the fine print and understand both the inclusions and exclusions when you buy car insurance for a new car. It helps you understand the do's and don'ts to avoid claim rejections. If you do not understand any section, please do not hesitate to ask your insurer.
