Car buying is a decision that involves long-term planning and is one of the expensive investment that you will make after real estate. Needless to say, you want your car to remain in pristine condition and the best way to do it is to get insurance for your car. In India, under the Motor Vehicles Act, it is mandatory to have third party insurance, which is basically insurance cover against damage to third parties. However, as damage to a car can be a very expensive proposition, most of us prefer buying a comprehensive policy that provides insurance cover for almost everything.
But what most of us don’t really know is what actually gets covered under a comprehensive car insurance policy. This results in wastage of a lot of energy, time and effort when claims are made. But as most of us are unaware of the actual coverage of the car insurance policy, our claims get rejected. Commonly, a comprehensive motor insurance policy covers collision, accident, theft, damage to natural calamities and third-party liability. Damages due to wear and tear, etc. are not covered under the motor insurance policy.
Here are the top 7 reasons why insurance claim can be rejected:-
1. Insurance Provider is not Informed
One of the most common mistakes is that we fail to inform the insurance provider of the accident before getting the car repaired. Usually, the car owner gets the car repaired after the accident on his/her own and then informs the insurance provider about the settlement. As the insurance company is unable to trace back the accident and repair, it can easily reject the claim. To avoid any chance of claim rejection, it is advisable to inform your insurance provider before getting your car repaired. Authorized personnel from the insurance company will first inspect the damage, estimate the extent of damage and the cost of repair, and will finally provide reimbursement for vehicle repair.
2. Policy is not Transferred
This usually happens in case of used cars. There remains a high probability that you will miss transferring the policy to your name. Always keep in mind that the car insurance policy is under the owner’s name and not in the car’s name. Hence, it is vital that you get the policy transferred under your name when you purchase a second-hand car. In cases where the transfer formalities are not done, the policy will stand null and avoid and you will not be eligible to make any claim.
3. Uninformed Installation of CNG/LPG Kit
While many cars come with factory installed CNG/LPG kit, there is no dearth of such kits in the market. If you have installed a CNG/LPG kit after purchasing the car insurance online and have not informed the insurance provider, then you stand to face a complete claim rejection even if the damage is not related to the kit as your car insurance is as good as no insurance.
4. Driving without License
If the driver driving the car at the time of accident does not have a valid driving license, your claim will definitely get rejected. Moreover, if the driver is proven to be driving under the influence of alcohol or drugs, claim rejection follows.
5. Car is used for Other Purposes
If you have registered your car as a private vehicle and you are using it for commercial purposes, for example, carrying passenger or goods, it may lead to claim rejection.
6. Notified your Insurance after the Specified Time
After an accident, you need to notify the claim within a specified time, usually up to 72 hours of the incident. If you fail to inform your insurance provider, you claim can be rejected. What’s more, if you have damaged your car and you continue driving it and this causes further damage to the car, then this damage will come under consequential loss, and as insurance companies have zero tolerance for consequential loss, your claim is surely going to be rejected. Notify your motor insurance company through online means as well as on call, to be on the safe side.
7. Normal Wear and Tear
Natural deterioration of the vehicle due to the regular is something that cannot be avoided. Hence, you can’t be indemnified against normal wear and tear. The natural deterioration of vehicles includes scuffing of breaks, weakening of engine, suspension, peeling of paint, abrasion of the interiors as well minor nicks and dents to the exterior of the vehicle.
Buy Online to Save Money
Do you want to save money on your car insurance? It is advisable that you purchase motor insurance online. The increasing internet penetration had made it easy to purchase as well as renew car insurance online, helping you save time as well as money. The most important thing to keep in mind when purchasing car insurance policy online is to know your insurance needs. Also, being aware of the terminology and doing due research before purchasing car insurance will help. You can compare quotes of various insurance policies, and shortlist the one that suits your insurance needs. Keeping these points in mind when buying motor insurance online can help you make the correct decision, saving both your time and money.
So, while motor insurance is a practical investment that can help you achieve any unaccounted expense due to an accident, it may be prudent of you to buy car insurance online. At the same time, make sure that any carelessness from your side doesn’t result in rejection of a car insurance claim.