Reasons for Car Insurance Claim Rejection - Quickinsure

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Common Reasons for Car Insurance Claim Rejection
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Car Insurance Claim Rejection

• Buying a car insurance policy has become quite
  common in India thanks to the increasing
  awareness among people. Car owners generally show
  an inclination towards a comprehensive car
  insurance policy over a third-party car insurance
  plan. The greater coverage offered by the
  comprehensive policy is the reason behind this
  preference.
• Having a car insurance policy keeps you
  tension-free. It helps you financially during
  crucial times and offers coverage against
  financial liabilities during accidents and
  mishaps. However, your insurance claim may get
  rejected sometimes. This results in utter
  disappointment and financial crisis. Frustrated
  insurance policyholders more often than not blame
  the insurers and call them frauds. But the truth
  is that your insurance claims get rejected
  because of certain clauses and phrases.
• If you have already got your car insurance policy
  and want to know about car insurance claim
  rejection reasons, let us guide you.

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Top 10 claim rejection reasons that you must know

• Want to avoid insurance claim rejection for your
  car? Then go through the below-given details
  carefully so as to avoid any kind of
  inconvenience in the future
• 1. Not having a valid driving license 
• If during the time of the accident, you are found
  driving without a valid driving license, the car
  insurance company will straightaway reject your
  claim.

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• 2. Driving in an inebriated state
•  Drunk driving is illegal, and hence, if you meet
  with an accident while you are intoxicated, the
  insurance company has all the right to reject
  your policy claim. The insurer always
  investigates a mishap before accepting your
  claim. Driving under the effect of alcohol always
  increases the chances of car accidents, and hence
  no insurer will provide you with the coverage
  money in case of drunk driving.

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• 3. Not informing the insurer within the given
  time frame
•  Every car insurance company mentions a deadline
  within which you need to intimate them about the
  accident. If you fail to keep them updated about
  the mishap within the given time frame, then this
  can be one major reason for insurance claim
  rejection. If the policyholder is taking more
  time than the predefined period, the insurer has
  the right to reject the insurance policy claim.

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• 4. Not updating the insurance company regarding
  LPG/CNG kit fitting 
• If you are planning to fit CNG or LPG kit to your
  car engine, then it is your duty to inform the
  insurance company regarding the same. The insurer
  will keep a note of this update and mention it
  during the renewal of the insurance policy. But
  if you fail to intimate your insurer about this
  change, they are more likely to reject your
  claim.

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• 5. Untimely payment of insurance premium 
• Inability to pay the premium before or on the due
  date can always be a major reason for claim
  rejection. When you pay the premium on time, it
  helps you keep the car insurance policy active.
  Also, your insurer wont be able to reject or
  deny your claim. Keep paying the premium on time
  if you do not want to face car insurance claim
  rejection.

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• 6. Providing misleading details to the insurance
  company
•  Providing incorrect details to your car
  insurance company in order to reduce the premium
  is not a solution. When the insurer comes to know
  about this fraudulent behavior, they can easily
  cancel and reject your insurance policy claim.

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• 7. Modification of your car before insurance
  renewal
• Generally, car owners prefer installing stylish
  accessories to their cars. If you are planning to
  get your car modified or add some uber-cool
  accessories to it, then make sure you inform the
  insurer about the same. They will send an
  inspector who will evaluate the updated car and
  then add the changes to your car insurance
  policy. The amount of premium will also go up. If
  you fail to update your insurer about the
  upgrades, this can be one of the biggest car
  insurance claim rejection reasons.

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• 8. Disobeying the policy norms and regulations 
• Every car insurance policy will have its own set
  of rules and regulations. It is the
  responsibility of every policyholder to adhere to
  the same. If you fail to abide by these norms and
  regulations, the insurer can very easily reject
  your car insurance claim.

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• 9. Insurance claims which arise out of
  consequential losses 
• Consequential losses are never covered by the car
  insurance companies. So, if you continue driving
  a damaged car and the engine further deteriorates
  because you delayed the repair and service of the
  car, then the car insurance company can easily
  reject your policy claims.

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• 10. Car insurance policy lapse
•  Every commodity comes with an expiry date, and
  your car insurance policy is no exception. The
  policyholder should always make it a point to
  renew the car insurance policy from time to time.
  Once the policy is expired, it won't offer any
  coverage for your car damages. So, in case you
  have failed to renew your car insurance plan,
  your claim can get easily rejected.

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