Buying a third-party vehicle insurance is compulsory for every automobile owner in India as per the Motor Vehicles Act, 1988. Fulfilment of your legal liability and financial security is the advantage of having car insurance.
At times, people find it difficult to understand why their insurance claim was rejected. To avoid the rejection of claims, go through these few reasons mentioned below, which are the prime causes for the disapproval by the insurance companies. Here is everything you need to know about what a claim is and what its claim procedure is:
- What is a claim?
A process wherein an insured asks the car insurance company for compensating him/her for the damages sustained by his/her car after an accident is known as a claim. Sometimes, the insured asks an insurance company to represent him/her on their behalf in case any damages are caused to the third party during an accident. Because one pays a car insurance premium, it is also one’s right to make a claim when he/she gets involved in an accident.
- How to ask for a claim?
Below are certain steps to follow to make a car insurance claim if your car meets with an accident.
Making an own damage claim is similar to a third-party car insurance claim.
- Call your insurance company after the accident and inform them about the damage
- Inform the police about the incident.
- File a claim with your insurance company. Ask them to assign a surveyor for the evaluation of the loss.
- Submit the claim online for a faster process.
- When to ask for an insurance claim?
In case of emergencies like accidents, you must make a claim with the insurance company immediately after the incident. If they find your claim genuine, they pay for the caused damages to you as well as to your vehicle.
- Why your claim might be rejected?
Given below are the top five reasons behind the rejection of car insurance claim by a car insurance provider:
- Damages that are not a result of disaster – Coverage is offered by the insurance policies for the damages included under the car policy. The insurance policy does not cover any additional damages. If a claim is filed for the uncovered damages, it will result in the rejection of your claim.
- Non-disclosure – If any information is not revealed by you while buying insurance or filing the claim, your claim would be rejected.
- Exclusions – Insurance plans come along with the terms and conditions. If your claim is not filed as per the applicable terms and conditions, there are chances your claim might be rejected.
- Fraudulence – If at all your actions or your behaviour appear to be fraudulent to the insurance provider, your claim might get rejected.
- Inactive Policy – If you file a claim, while your policy status is inactive; your claim will be rejected.
A car accident not only affects your mental peace but also your financial stability. Amidst the chaos of the accident, filing for paperwork and claims is exhausting. Hence, opt for a car insurance policy beforehand since it will lessen the burden to deal with losses. However, before purchasing a car insurance policy, compare multiple options and get free quotes. Look for an insurance company, which offers faster claim settlement and provides an online procedure for the same. Make sure that you are keeping track of the validity of your policy, as a lapsed policy does not provide any benefits.
Set reminders for car insurance renewal to enjoy continuous security for your vehicle.