Nowadays, with the cashless facility and online submission, the claim on a car insurance policy has become easy. However, in some cases, the insurance company may deny the claims. These situations are not common, but when they occur, the insured person often does not understand what happened and why it has happened. There are several reasons which can result in such a situation. Here are the top 6 reasons why your car insurance claim can be denied.
- When accidents cause due to negligence of the policyholder
Accidents can happen to anyone, anywhere and anytime. Indian roads are highly prone to accidents because of potholes and cracks. However, if there is a chance that you could have avoided the accident, the company can reject the claim. The insurance company can also reject the claim if you did something against the policy’s terms and conditions. Driving without or with an expired license, drunk driving, and driving under the influence of recreational drugs come under such cases. If you are using the vehicle for commercial purposes while it is meant to be for personal use, the company can deny the claim.
- When immediate medical aid proof is not available for the injury
Car insurance policies also cover medical expenses caused due to a car accident. However, you can only claim such cover if you got medical treatment immediately after the accident. If you do not have the documentary proof of the treatment, such as a medical bill from the hospital or medical certificate issued by the doctor, then the company can counter-argue that you didn’t get the treatment and the injuries were not caused by accident.
- No photographs or documents to prove the accident
If you do not take pictures of the accident and the injuries after the accident, the insurance company may deny the claim. Someone on your behalf must take the photographs if you are unable to do so. Also, it is better to file an FIR immediately after the accident as the police will include everything about what happened and what damage has been done in the report.
- If the policy is inactive
Car insurance policy is only available on an annual basis. You have to pay a premium every year to renew it before the due date. If you have paid the premium before the due date, the insurance company has to provide the coverage at the time of the accident as per the terms and conditions of the policy. If you fail to pay the premium on time, the policy will be considered null and void as soon as the validity of the policy expires. In such cases, the insurance company can deny the claim.
- Providing false information in the insurance policy application
Insurance policies are a type of agreement that thrives on trust between the policyholder and the insurance company. If for some reason, you provide wrong information while filling out the insurance application, the company can deny the claim. For example, if you have provided wrong information about your driving experience, previous accidents in while you were involved, information about the car such as mileage and speed, and more. If the insurance company finds out that you have filed wrong information, they will deny processing the claim. Not only your claim will get rejected by because you have provided false information, but the company will also cancel the insurance policy as well.
- If you wait too long to file a claim
In most of the cases, as per the terms and conditions of the insurance company, you should file the insurance claim within 48 to 72 hours after the accident. In case of an accident, it is important to inform the insurance company as soon as possible. If you do not stick to the deadline, the insurance company can deny the claim. Also, if you decide to drive the damaged car further, the company will not process the claim as there might wear and tear more because you drove the car after the accident.
A Comprehensive Car Insurance policy can save you from significant financial losses in case of an accident or theft. It is important to provide the correct information while buying an insurance plan. Also, it is important to take care of the regulations mentioned in the policy and inform the company as soon as possible after the accident. By keeping the possible reasons for claim denial in mind, you can file the claim the correct way.