Reasons Your Motor Insurance Claim Can be Rejected
A motor insurance policy is a mandatory compliance for all vehicle owners and skipping it can put you on the wrong side of the law. You surely do not want to be in such a situation as it has hefty penalties including imprisonment in some cases.
To be compliant with the Motor Vehicles Act, it is essential to buy at least a third-party motor insurance cover. But knowing what your policy entails is critical. Having the right information about your insurance plan helps to know the coverage of your policy, its features, and also its exclusions from the coverage. Not familiarising yourself with all these policy-specifics can often lead to rejected insurance claims. *
This article describes some of the reasons as to why motor insurance claims are rejected helping you avoid financial losses for repairs. Continue reading to know more.
Ignorance about policy and its add-ons
The foremost reason for an insurance claimto get rejected is not having the right policy information. Every insurance policy covers certain specific events which are generally either due to accidents, natural disasters, theft and other man-made events. The scope of the policy is laid down from the start. So, there is a definitive coverage that your policy provides. When new buyers generally buy one, they do not pay much attention to these details and during a claim, are faced with disappointment knowing the damage is outside the policy’s purview. The same is the case for add-ons which are additional covers that are limited in its scope. *
Vehicle already sent in for repairs
Another reason that leads to a rejected claim is when vehicles are sent for repairs without any intimation to the insurance company. In the event of an accident or damage, informing the insurance company should be among the first few steps after reporting an FIR (if required). Many buyers often remember to inform the insurer later leading to a rejection of the claim. For cashless motor claims, it is a critical requirement for the insurance surveyor to assess the damages and only then carry out any necessary repairs at a network garage. *
Commercial use of motor vehicles
If your vehicle carries a private registration and is being used for commercial purposes, an insurance claim can be rejected in case of accidents. This is because the coverage for the different types of vehicles varies and accordingly insurance policies are designed. *
Misinformation or concealment of information
False disclosures or even concealment of necessary information leads to wrong underwriting of the risk by the insurance company. This way, the insurance company is at a loss enabling the policyholders to gain an unfair advantage. Thus, any kind of misinformation or even concealing material information can lead to rejected claim applications. Wrong NCB percentage, false information about the condition of the vehicle are examples of misinformation in an insurance policy that you must avoid.
Modifications to your vehicle
Modifications that are not informed to the insurer is an outright reason that attracts a rejection of your insurance claim. When modifications are made to your vehicle, the risk that the insurer needs to underwrite changes. *
Now that you know the reasons why your claim can be rejected, make sure to be informed about it from the start. When you shortlist a policy, make use of a motor insurance calculator that helps you calculate the right premiums and also compare the different available plans. *
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