How to Ensure Your Car Insurance Claims Aren’t Rejected
Not more than a decade back, the IRDAI had presented a report which stated that the number of insurance claims rejected in India had summed up to Rs. 244.77 crores. (Sources: www.irdai.gov.in) With each passing year, although the country has witnessed stupendous advancements in every field, yet the number keeps on rising. Such a high rate of rejection not only causes tension among the stakeholders and policy bearers but also puts a thorough setback on the insurance providers and the national economy as a whole. Among the various insurance policies rejected, a major number of rejections are imposed on car insurance claims. Irrespective of the nation, the general reasons for rejection are more or less similar everywhere. The policies might not only get rejected post application but also when the car insurance process is ongoing. However, one can easily avoid such high chances of rejection by having a careful and attentive approach. Hence, here is a list of things to be taken care of in order to ensure that your car insurance claim is not rejected.
If you miss out on the policy expiration date, then your policy will automatically get rejected. The insurer usually provides a few days of relaxation during which the policy can be renewed (along with late fine) without getting rejected. Besides, the car insurance claim may also get rejected due to repeated failures in timely payments. However, as per the recent rules, the insurer is unable to reject car insurance claim after three years of policy issuance. This is also the reason why policyholders are always requested to claim long-term policies.
One of the major reasons for the rejection of your car insurance claim is reckless driving. If the owner or the driver is found guilty of driving on the wrong side of the road or breaking the driving rules or has been reported of irresponsible driving, there are high chances of the car accident insurance claim being rejected. It can also get rejected if the driver has been found guilty of alcohol consumption or drug abuse while driving.
Frauds or Thefts
The car insurance claim process will be immediately put to halt in case the insurer suspects any kind of possible defrauds. This happens in case the owner claims his/her car to be missing or stolen without a proper FIR lodged in the regional police station. Hence, to avoid rejection of car insurance, the policyholders are requested to first lodge an FIR and then approach the company along with the FIR copy.
Your car insurance claim is likely to get rejected in case the car already had some mechanical fault before the accident. Hence, missing indicators or alarms or malfunctioning of the motor should be repaired right away in order to avoid unforeseen circumstances. The owners should always check for mechanical malfunctioning for both the safety of their lives as well as for successful insurance claiming.
Accident Claim After A Long Gap
The policyholders are highly advised to put forward their car accident insurance claim right after the accident without any delay. The insurance provider might readily cancel the proposal in case the coverage is being claimed long after the accident had actually taken place. To avoid such rejection, the owners are advised to inform the car insurance company about the accident as soon as possible. Also, one should be able to provide proper photocopies of driving license of the driver, and photocopy of the FIR lodged, along with the other necessary documents.
Availing car insurance has been pretty easy nowadays. However, there is also a greater chance of getting your instance claim rejected. Although such rejections can be easily avoided by careful observation, yet a number of policyholders often end up complaining about an unfair rejection of policy claims. In such cases, the owners are advised to seek legal actions along with necessary documents. Every document related to the car insurance is of supreme importance, as missing out on any will directly lead to the rejection of car insurance claims.