9 Common Reasons for Car Insurance Claim Rejection

It is essential to protect you and your family from financial liabilities by purchasing a reputable car insurance policy. Whether an individual opts for mandatory Third-Party Car Insurance or Comprehensive Car Insurance, they trust the insurance company to provide them with the coverage they need and disclose the necessary information for them to do so.

 

Shriram Comprehensive Car Insurance provides protection against losses caused by natural disasters, accidents with Third-party, theft, fires and accidents resulting in death or loss of life.

 

If an individual submits a claim and is denied by the insurance company, it may frustrate them. However, an insurance policy will only pay out if it is within the conditions of coverage.

 

Policy holders should know why their car insurance claim can be denied.

 

False Claim:

If an insured attempts to create a false account of an accident to receive a car insurance claim, the insurance company may deny their claim.

 

Drunk and Drive:

Policy holders involved in an accident while driving after consuming alcohol could face legal repercussions as drinking and driving is an offense.

 

The affected party can file a claim however the insurance company may reject this if they find that the accident was caused due to the intoxication of the driver.

 

Without a License

If an individual gets caught driving without a valid license and meets with an accident, they will be considered at fault and the insurance company may deny the claim.

 

Modified Car

Suppose a policy holder fails to inform the insurance company of the changes made to their car after taking out the policy. In that case, they can deny any claims they make during an accident due to discrepancies between the declared specifications and the actual car.

 

Delayed Claim Intimation

Policy holders must make a claim notification to the insurance company about the accident and related damages before the set deadline; if they wait longer than the given time, the insurance company may reject their claim.

 

Policy Conditions Violation

If the insured’s car falls under the private vehicle category but uses it for commercial purposes, they may not be able to make any damage claim if they met with an accident.

 

The insurance company will investigate and if they find that they have breached the policy terms, they may not cover the car damage.

 

Renewal Date Lapse

When an individual informs the damages to insurance company that happened after the lapse date, they will not accept the claim as their car insurance was invalid.

 

Non-Disclosure

Failing to disclose personal and vehicle information when purchasing an insurance policy or filing a claim can be detrimental. For example, suppose a policy holder does not disclose to the insurer that they were under the influence of alcohol when the accident occurred and they discover it later. In that case, their claim will likely be denied.

 

If they drive a car that is already in poor condition and it causes further damage to the engine, any resulting losses will not be covered by insurer.

 

In a Nutshell

It won't be very reassuring to the insured when the insurer denies their vehicle insurance claim. After all, policy holders get a comprehensive insurance policy for financial protection when needed. If they stick to the rules and regulations, they will receive all necessary financial assistance. However, if they succeed their claim could be accepted as their car insurance would not be valid.

 

Key Highlights

• The insurance company may reject this if they find that the accident was caused due to the intoxication of the driver.
• In this scenario, when an individual intimates a claim, the insurance company will deny the claim due to the lack of legal transfer of ownership.
• If an individual gets caught driving without a valid license and meets with an accident, they will be considered at fault and the insurance company may deny the claim.

 

FAQ’s

1. When can a car insurance claim be rejected?

Making false claims with an insurer can lead to severe consequences. If the insurance company discovers a claim to be untrue, it can be immediately denied. It can sometimes even result in legal action against the policy holder.

 

2. How much can you claim for car insurance?

One may make as many claims as possible up to the Vehicle's Insured Declared Value (IDV). However, keep in mind that each claim they make will have an impact on the No Claim Bonus.

 

3. Can you claim insurance if someone scratches your car?

If an insured is unsure of the cause of a scratch, they should contact their insurance company to determine whether comprehensive or collision insurance will cover it.