People buy car insurance policies with just one hope- if anything goes wrong, if the car gets into an unfortunate accident, if any mishap takes place, things will be taken care of by the insurance company. Responsible policyholders even try to gain knowledge about the claim filing process. But still, multiple instances come up every year, where the insurance provider simply rejects the claim. And as a result, the policyholder runs into great difficulties. If you want to ensure that your car insurance claim does not get rejected by your insurance provider, then you need to ensure certain things. This blog discusses all you need to avoid instances of car insurance claim denial.
What Are The Reasons Behind The Rejection Of Your Car Insurance Claim?
Want to know on what grounds your car insurance provider can reject your claim? Check them out here!
1. Not filing the claim within the stipulated time frame
If a policyholder fails to inform about the accident to the insurance company within a fixed set of times, then the insurer has the right to deny the claim. It is necessary to intimate the insurer about the incident as soon as possible. Generally, you get a window of around 24 to 48 hours after the accident to report it to your insurance company.
2. Not renewing the car insurance policy
If you have forgotten to renew your car insurance policy on time, then too, the car insurance provider will reject your claim. If you fail to renew the policy within the stipulated time, your policy gets lapsed. And a lapsed policy gives no coverage. So, you won’t be entitled to any financial assistance from the insurer.
3. Driving the car in an inebriated state
If the driver was in an intoxicated state while driving the car, then the insurance company has all the right to deny your claim. They will not entertain your claim and reject it straight away.
4. Car suffering consequential damages
Suppose your car has a damaged part and this part is not covered under the policy. In due course of time, it can affect and damage another part that is already insured in the policy. But the insurance company will not accept the claim as the damage has been caused by the uninsured part by a consequential effect.
5. Not transferring the car insurance plan in your name
If you have got yourself a pre-loved vehicle, and have not yet transferred the policy in your name, and your car runs into an accident, your claim will be denied by the car insurance company. You need to get the car registered in your name and also carry the registration certificate always while driving.
6. Not carrying a valid driving license when the accident took place
Were you not carrying a valid driving license when the accident took place? Then, my friend, the insurance company will reject the claim immediately. As per Indian laws and regulations, it is mandatory to carry a valid driving license whenever you hit the road with your vehicle. So, if you were not following the norms, you are already not eligible to raise the claim.
7. Claims related to regular wear and tear of your car parts
If a part of your car has got damaged because of regular wear and tear, then this does not come under coverage offered by a comprehensive car insurance plan. So, this is another reason why your claim may get rejected.
8. Using a personal car for commercial purposes
If you have bought a car for personal use and are using it for commercial purposes, then you have no right to raise a claim. If during commercial usage, your car gets damaged, you won’t get any compensation from the insurer.
9. Accidents taking place beyond the geographic limits as mentioned in the insurance plan
As per the IRDAI regulations, either your car comes under Zone A or Zone B. All the metro cities fall under the category of Zone A. And the rest of India comes under Zone B. Now if your policy has been made as per Zone A and your car got damaged while driving in Zone B, then too, the insurance company can reject your claim.
10. Installing additional parts to your car after purchasing the policy and not informing the same to the insurers
Suppose you have installed any accessory to your car and have not declared about the same in your policy, then too, the insurers may deny your claim. Even if the damage has nothing related to the accessory, still the insurance company can refuse to compensate for the damage.
11. Driving a car after the accident took place
Right after the accident took place if you still drive your car back home or any other place, the insurance company will reject your claim. Because driving a car after an accident may lead to further damage. So, it is better not to move the car until the assigned investigator arrives and conducts thorough research on the degree of damage.
How To Prevent Your Car Insurance Claim From Getting Rejected?
Now that you know the things that may lead to denial of your car insurance claim, follow the below-given points to ensure that your claim never gets rejected!
- Always renew your car insurance policy on time.
- Never drink and drive.
- Informing the insurer has to be on your priority list in case of a car accident.
- Do not run away from the accident spot. Do not even try to move your vehicle from the place. You can inform the nearby police station to help you with clearing traffic and managing the public.
- Do not get nervous or aggressive. Both the behaviour can turn out against you. Stay calm and inform the insurance company.
- Never use your personal vehicle for commercial purposes.
- Do not forget to carry the necessary documents while driving such as the RC, valid PUC, and your driving license.
- Make sure you transfer the insurance to your name even when you have bought a second-hand car.
- Inform the insurance company if you have installed an accessory in your car.
- Abide by the traffic rules and regulations while driving.
Things To Do In Case Your Car Insurance Claim Got Denied
If your car insurance claim gets denied, it disturbs your budget as well as your peace of mind. Here is what you can do in case your car insurance claim got rejected:
- If the insurance company has not got back to you even after 2 weeks of raising the claim, you can raise a complaint to the grievance officer of the related branch. Mention all the details in writing. You can either write a hard copy letter or an email. Also, do not forget to get an acknowledgment for the complaint letter or mail you have sent.
- You can do the same if you have got a response from the insurer but you are not happy with their solution.
- Further, you have the right to escalate the complaint to the IRDAI. Dial their toll-free number 155255/18004254732. (8 am to 8 pm, Monday to Saturday).
- You can even send an email at email@example.com
- IRDAI has yet another system for complaint registration. Simply visit their consumer education portal and fill in the complaint registration form.
- You can also try posting your complaint letter at the below-given address:
The General Manager
Consumers Affair Department- Grievance Redressal Cell
Insurance Regulatory and Development Authority of India (IRDAI)
4th floor, Survey No.115/1
Financial District, Nanakramguda, Gachibowli
Hyderabad – 500032
Getting your car insurance claim rejected is hurtful. But if you follow the norms from the beginning, then rarely do insurers ever reject the claim. And now you also know what has to be done in case your claim gets rejected even after following all the rules and regulations. Follow the instructions carefully for an easy and convenient solution to your car insurance claim rejection issues.