Any damage to your car is an extremely unhappy and agonizing incident.
It become even more tragic, when the insurance company refuses to honour your claim for repairing the damage(s).
'Being forewarned is forearmed' is a common proverb.
Hence, for your prior knowledge, listed below are the common reasons for any motor insurance claim to be rejected (as given in the recent IRDAI's Journal Sept 2015).
1. Not informing the insurer
It is but natural that the insurance company should know exactly "how much" damage your vehicle has suffered. You cannot get your car repaired and then lodge a claim with the insurance company. If the damaged car has not been surveyed prior to repairs being undertaken, there are good chances of your insurance claim being rejected.
2. Delayed intimation
Moreover, you have to notify the insurer within a specified time frame. This is usually fixed at around 48 to 72 hours. Late notifications would mean that your insurance claims won't be entertained.
3. Driver without a valid license
The person, who was driving the car at the time of accident, should have had a valid driving licence. If not, you cannot expect the insurance company to honour your claim.
4. Improper use of vehicle
You have registered your vehicle as a private car. However, you are employing the same for commercial purposes. Again, claim rejection is but obvious.
5. Wrong parking / Overloading
Your car got damaged while parked in the No Parking Zone. Or, it was carrying more passengers than the seating capacity. These and similar such instances will be valid reasons for the insurance company to reject your claim. So, be aware of the risks involved even with such minor offences.
[Also Read : Ten Key Aspects Of Vehicle Insurance That You Must Know]
6. CNG / LPG kit not declared
To save on fuel costs, many owners install CNG / LPG kits in their cars. Insurance company needs to be informed of such a major modification to your vehicle. Where the insurance company does not have the knowledge of such CNG / LPG installations, it will not be liable to pay your claims.
7. Driver is intoxicated
You would surely be aware that you get no insurance claim if you are driving under the influence of alcohol or drugs.
8. Consequential damage
Insurance policies provide cover only for the damages that result directly from any mishap. Indirect (i.e. consequential) damages are excluded. For example, you can claim for the repairs of all the damages to your car due to water logging. But, if you try to start your stuck vehicle and this damages the engine, you won't get a penny towards engine repair. This is so because, here wrong use of car damages the engine; and is not a 'direct' loss due of the water logging problem. If the engine were damaged in an accident that would, of course, be covered.
9. Driver is negligent
Theft of your vehicle, or items within, will not be covered if such theft happens because of your negligence or fault which resulted in the failure to prevent the theft. Further, you must also have appropriate bills or receipts for the items fitted in your car, to make a claim for any such stolen items.
[Also Read : Fine Prints In A Car Insurance Policy]
10. Outside geographical area
IRDAI (Insurance Regulatory and Development Authority of India) has divided India into two geographical zones viz.
- Zone A: Includes the metro cities i.e. Delhi, Mumbai, Kolkata and Chennai
- Zone B: Covers the rest of India
In general, motor insurance is applicable throughout the country. But, you must still verify whether your policy is applicable on all-India basis, or for a particular geographical area. Accidents occurring outside the given zone, will be outside the purview of the policy.
11. Lapsed policy
Even one day beyond the last date of the policy period, is not admissible. Hence, you must ensure that your policy is renewed well before the due date. Don't be lazy with your premium payments. Last minute delays in cheque clearances have often proved to be a serious lapse.
It become even more tragic, when the insurance company refuses to honour your claim for repairing the damage(s).
'Being forewarned is forearmed' is a common proverb.
Hence, for your prior knowledge, listed below are the common reasons for any motor insurance claim to be rejected (as given in the recent IRDAI's Journal Sept 2015).
1. Not informing the insurer
It is but natural that the insurance company should know exactly "how much" damage your vehicle has suffered. You cannot get your car repaired and then lodge a claim with the insurance company. If the damaged car has not been surveyed prior to repairs being undertaken, there are good chances of your insurance claim being rejected.
2. Delayed intimation
Moreover, you have to notify the insurer within a specified time frame. This is usually fixed at around 48 to 72 hours. Late notifications would mean that your insurance claims won't be entertained.
3. Driver without a valid license
The person, who was driving the car at the time of accident, should have had a valid driving licence. If not, you cannot expect the insurance company to honour your claim.
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| A happy driver is one who is careful about both the car and its insurance. |
4. Improper use of vehicle
You have registered your vehicle as a private car. However, you are employing the same for commercial purposes. Again, claim rejection is but obvious.
5. Wrong parking / Overloading
Your car got damaged while parked in the No Parking Zone. Or, it was carrying more passengers than the seating capacity. These and similar such instances will be valid reasons for the insurance company to reject your claim. So, be aware of the risks involved even with such minor offences.
[Also Read : Ten Key Aspects Of Vehicle Insurance That You Must Know]
6. CNG / LPG kit not declared
To save on fuel costs, many owners install CNG / LPG kits in their cars. Insurance company needs to be informed of such a major modification to your vehicle. Where the insurance company does not have the knowledge of such CNG / LPG installations, it will not be liable to pay your claims.
7. Driver is intoxicated
You would surely be aware that you get no insurance claim if you are driving under the influence of alcohol or drugs.
8. Consequential damage
Insurance policies provide cover only for the damages that result directly from any mishap. Indirect (i.e. consequential) damages are excluded. For example, you can claim for the repairs of all the damages to your car due to water logging. But, if you try to start your stuck vehicle and this damages the engine, you won't get a penny towards engine repair. This is so because, here wrong use of car damages the engine; and is not a 'direct' loss due of the water logging problem. If the engine were damaged in an accident that would, of course, be covered.
9. Driver is negligent
Theft of your vehicle, or items within, will not be covered if such theft happens because of your negligence or fault which resulted in the failure to prevent the theft. Further, you must also have appropriate bills or receipts for the items fitted in your car, to make a claim for any such stolen items.
[Also Read : Fine Prints In A Car Insurance Policy]
10. Outside geographical area
IRDAI (Insurance Regulatory and Development Authority of India) has divided India into two geographical zones viz.
- Zone A: Includes the metro cities i.e. Delhi, Mumbai, Kolkata and Chennai
- Zone B: Covers the rest of India
In general, motor insurance is applicable throughout the country. But, you must still verify whether your policy is applicable on all-India basis, or for a particular geographical area. Accidents occurring outside the given zone, will be outside the purview of the policy.
11. Lapsed policy
Even one day beyond the last date of the policy period, is not admissible. Hence, you must ensure that your policy is renewed well before the due date. Don't be lazy with your premium payments. Last minute delays in cheque clearances have often proved to be a serious lapse.
