THESE 9 REASON CAN LEAD TO CAR INSURANCE CLAIM REJECTION
Car Insurance is the most common and mandatory type of Insurance product taken by the general public. Any genuine Car Insurance claim will not get rejected. But below mentioned reasons play an important role in getting Car insurance claim rejected. Therefore, one must go through below reasons and avoid the same to have smooth claim settlement.
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Driving license expired-
If, the driving license of the vehicle driver has expired Or If the vehicle driver does not hold a driving license then also the claim will get rejected -
Drunk Driver-
If the driver has consumed alcohol or drugs while driving the vehicle then the insurance company will reject the claim for committing a crime as alcohol consumption while the drive is a punishable offense. -
Fraudulent Claim-
Many times Car Insurance claims get rejected, if the Insurance Company discovers that the claim was exaggerated then the actual damage caused. As, such fraudulent claims may not only get rejected. But can also have legal consequences under which you might have to pay to the insurance company for the cost bared in investigating the fraud. -
Disclosing incomplete information-
Another common reason for car insurance claim rejection is remaining quite about the modifications made in the vehicle at the time of taking motor insurance. Ex upgrade of engine etc. If such information comes into the notice of Insurance Company then they might reject the claim for hiding the relevant information. -
Breaching Policy Conditions-
In case the client has taken the car insurance for the private vehicle. But the person is using the vehicle for commercial use. In such a scenario, the insurance company can reject the insurance claim.
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Not Reporting About the Accident on Time-
If the insured does not intimate the insurance company about the accident in time, then the company might reject the application. For most of the insurance companies, the window for intimating about the accident is 48 hours. -
Normal Wear & Tear-
If the claim is made for day to day wear and tear then such claims can get rejected. Example: Engine weakening due to regular use, peeling paint etc. -
Consequential Damage-
If the damage is caused to the vehicle despite clear instructions by the insurance company that not to use the vehicle under certain conditions when there is another option. Example: using the vehicle in flooded area causing damage to the engine. In such a scenario the claim can get rejected. -
Due to negligence of the Insured-
Suppose the theft of the car happened due to the negligence of the insured then also the claim can get rejected.
