Car Insurance Claim Rejected? Here are 7 Reasons Why
Buying a car is a major long-term decision. Apart from home, a car is one of the most expensive investments that a person makes. We are very careful about our car and the way we drive. However, there would be times when damages to the car happen. This can be caused by your negligence or through someone else’s fault. Accident, collision, theft, or damage due to natural calamities are some factors due to which your car may suffer from damages.
Most people believe that the car insurance companies would reimburse the cost of the damage repairs. While this may be true for many instances, there are also many cases where your car insurance claim can be rejected. Here are 7 reasons when your car insurance claim. can be denied.
7 Reasons Why Your Car Insurance Claim is Rejected
1. No Insurable Interest
When the insurable interest is not established i.e. the policy holder name differs with the name of owner as per vehicle RC Book, the car insurance claim can be rejected.
2. Non-holding of Driving License / Invalid Driving License
The claim can be rejected if the driver does not have a valid motor driving license issued by RTO to drive the appropriate class of vehicle as per the Motor Vehicle Act. Also, a driver need to take check the expiry of the validity period of the license. The Regional Transport Office (RTO) issues motor driving license for 20 years validity period up to age of 50 years and 5 years validity period after age of 50 years. For any commercial vehicle the driving license validity is for 3 years.
3. Mechanical/Electrical Breakdown Damages
If your vehicle is stuck due to any mechanical/electrical breakdown, (i.e. damages occurred without any external impact), the claim will be rejected.
4. Repairs of Vehicle Started/Completed without Intimating Insurer
If the vehicle has met with any accident, the customer needs to intimate the insurer about accident. Once the damaged vehicle inspection survey is done, repairs can be started based on the assessment carried out by surveyor. If repairs of vehicle are started/completed out without intimating insurer, then the claim will be rejected.
5. Commercial Vehicle
If the driver of a commercial vehicle does not hold a valid fitness certificate and road permit, or the fitness certificate and road permit, issued by RTO, are not valid as on date of the accident, then the claim will be rejected as per the Motor Vehicle Act. Normally validity of Fitness Certificate is for 1 year and road permit is for 5 years.
Rejection can also happen when there is overloading of goods than the permitted carrying capacity of vehicle or if the number of persons travelling are above seating capacity of the vehicle. If the vehicle is carrying a load over and above the mentioned carrying capacity as per RC Book, then claim will be rejected. Similarly if number of people travelling are more than the seating capacity mentioned in RC Book, the claim can be denied.
6. Misrepresentation of Facts
During the process of claim, if there is any misrepresentation of the fact regarding the accident and any moral hazard or there is any fraudulent document submission by the insured, the claim can be denied.
7. Drunk Driving
If driver is under consumption/influence of any intoxicating liquor or drugs, and meets with any accident, then claim will be rejected.
Knowing these factors for car insurance claim rejection can help you avoid the hassle and confusions that arise due to such rejections.
For more information about car insurance in India, click here.
This article was authored by Mr. Hardik Dave, Senior Executive, Non-Motor Claims at Bajaj Allianz General Insurance Co. Ltd