Handling rejection is hard, be it in a job or for visa approvals. It discourages us and makes us feel low about ourselves. Unfortunately, your car insurance claims too can get rejected sometimes, subjecting you to mental stress and financial burden. There might be myriad reasons for the rejection. Prime one among them might be the inability to adhere to the terms & conditions mentioned in the policy documents. Whenever we buy a car insurance policy, we see several terms & conditions mentioned in the policy document. They state what is covered under the policy and what could result in the rejection of the claim. It is always recommended that you read every minuscule detail of policy documents carefully to get the optimum benefit out of your car insurance policy.
A lot of you might be unaware of the circumstances that could lead to the rejection of your insurance claim. Well, several reasons and faults could lead to that. This article will introduce you to all the major reasons that you should deter from, to avoid insurance claim rejection.
Not getting your policy renewed on time
One should be punctual when it comes to renewing a car insurance policy. Not getting your policy renewed within 90 days of the expiration date might lead to a lapse of your policy and subsequent rejection of your claim at the time of settlement. Also, any loss that is incurred at the time between the expiration and renewal date of your policy shall not be covered by the company. So, it is important to renew your policy to stay under the cover at all times.
Breach of policy conditions
The policy terms & conditions are stringent and absolute. They are to be followed word by word. For instance, declaring the purpose of your vehicle which you are getting insured. That means you have to inform the company whether the vehicle you intend to use is for personal use or commercial purpose like a taxi. If at any point, the vehicle meets with an accident and it’s found that the vehicle is being used as a taxi even though it is registered as a private vehicle, the insurance company may outright reject your claim.
Getting your vehicle modified
Adoration of your car with technical gadgets is a big NO-NO to ensure your claim doesn’t get rejected by the company. The color, make, engine, and every specification of the car is to be listed in the policy documents. Making any changes to your car (if absolutely necessary), without informing the insurer, can lead to the rejection of your claim.
Drink & drive
If it’s found that the driver was under the influence of alcohol while driving the car and the damages done are his fault, then the insurance company might not entertain your claims. Also, drunk driving is a serious legal offense and might lead to criminal charges and a hefty fine. Even in third-party liabilities, the insurer will not cover the expenses in case of a drink & drive issue.
Making fraudulent claims to extract money from the insurance company might lead to the rejection of your claim. Remember that the insurance company checks your document very closely and they will definitely reject your claim if they find it non-viable.
Driving without a license is also a serious legal offense and might lead to criminal charges. If you meet with an accident and do not happen to possess a license or are a minor at the time, the insurance company might reject your claim for not following the most basic traffic rule of the country.
While assessing your vehicle, if the insurance company finds the above-mentioned faults, then they might reject your policy claims. Avoid these to ensure smooth and proper settlement of your claim.