Being in a car accident can be traumatising, not only physically and mentally but also financially. However, what can be all the more devastating after an accident realises that you have invalid car insurance. Having to bear your damages, third party liabilities, and legal complications are some of the few problems you may face if you have wrong information on car insurance. Being unaware of your car insurance policy coverage can land you in serious trouble and cause a lot of heartburn.
To deal with such a situation and avoid any trouble, it is imperative to understand how it can arise. Here are the top 10 reasons that lead to invalid car insurance.
- Your policy has lapsed: Only when your car's insurance policy is active would you have the right to make a car insurance claim. For this, you need to make sure that the policy has not lapsed or expired. If you have not renewed the policy and it has passed the date of expiry, then you do not have the right to raise a claim.
Remember: A car insurance plan comes with a fixed tenure. Most car insurance companies offer a 30-day grace period to you to get the policy renewed. If an accident takes place in the grace period, you would not be able to make a claim.
You took too long to file a claim: A delay in reporting an accident can also lead to the rejection of your car insurance claim. Most companies allow a window of 24-48 hours, within which you must notify the insurer about the accident. The claim can be registered online quickly, either via email or through the company's portal.
Getting the car repaired on your own and then filing a claim will also be invalid car insurance. The insurer would not trace the accident, and thus, your claim would be rejected.
Note: Do not keep driving the car after an accident, as it may cause further damage to your vehicle. Also, never get your car repair before informing the car insurance company.
- You were driving without a valid license: This one is relatively self-explanatory. If you/ the driver doesn't have a valid Driver's License, you are in no position to claim your car insurance. It would be best to remember that an expired license is also as bad as not having a license.
- You were intoxicated: If you are involved in an accident while driving under the influence of an intoxicant such as alcohol or any other prohibited drug, there is no chance of making a claim. Instead, you will land in legal trouble for doing so.
- Your car was engaged in a malicious activity: Most accidents are natural and are caused by certain unforeseen events. These events/ incidents could be mistakes or coincidences and are mostly covered under car insurance. However, when you get involved in a malicious/ illegal activity against the law, you do away with any insurance claim.
- The accident took place outside India: The IRDAI clearly defines the geographical boundaries of the country. In case the accident has taken place outside India, your car insurance would likely be invalid, and you won't be able to receive any compensation.
- The vehicle was used for other purposes: The incorrect end-use of your vehicle can also make the car insurance claim rejected. Using the car beyond its limitation can make it an invalid car insurance policy. For instance, your claim may be denied if you use your private car for any commercial/ business use. The rules of coverage and insurance are different for commercial vehicles, and a different set of premiums and rules are followed for them.
- You made modifications to your car: Most car owners make specific alterations/ modifications to their vehicle, which could be functional or cosmetic. Additional accessories, installations and other such changes often affect the IDV and thus the insurance. It is, therefore, essential that when you make modifications to your car, you also inform the car insurance company about the same. Not doing so can also lead to a car insurance claim being rejected.
Self-negligence will prove to be costly: While estimating the damage, if the insurance company finds that the accident was due to your carelessness, negligence, or self-inflicted, the damages will not be covered, and your car insurance would be considered invalid.Example: Not following or violating traffic rules, for example, going into a No Entry Zone, and ending up in a collision, would not fetch you a claim.
- You made a false claim: If you are found to be making a false claim or have offered any fabricated or wrong information on car insurance, it is most likely that your car insurance claim will be rejected. It is highly recommended that you do not make any fraudulent claims with your insurance company, as you can also be charged with legal charges.
To summarise, it can be said that you have to be cautious of what the car insurance policy means and covers. You should also be aware of the factors such as depreciation and regular wear and tear of the vehicle, which are not covered in car insurance. You might not always be able to avoid a mishap, but at least ensure that you pay premiums on time so that your policy remains active. Avoid activities that can get your car insurance claim rejected. In case of an accident, following all required steps of making a claim should be followed so that the process can be quick and easy. In case of invalid car insurance, neither the law nor the car insurance company would be able to help you.
Disclaimer: The information published in this article is for reader′s reference only. The content of this information is to provide an overview of your motor insurance needs. It should not be relied upon for personal, medical, legal or financial decisions, and you should consult an appropriate professional for specific advice. The makes no representations about the suitability, reliability, timeliness, and accuracy of the information, services, or any other items mentioned on this subject for any purpose whatsoever.
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