3 reasons why your car insurance claim may be rejected
Owning a car is a great
feeling. It gives one a sense of independence and one does not have to depend
on crowded public transportation vehicles. But, as per a mandate issued by the
Government of India, it is necessary for all vehicle owners to invest in car
insurance. The Motor Vehicle Act of 1988 states that all vehicle owners must
have a mandatory third party liability insurance cover which protects them from
incidents of damage to vehicle or property, injuries and even death, in case of
an accident. Car insurance provides the much needed financial security that
arises out of such incidents and even covers you for legal liabilities. That
said, there are a few reasons why your insurance claim may be rejected. Let’s
find out what they are.
Not
disclosing relevant information: As per the terms and
clauses of your insurance policy, you are mandated to disclose the necessary
information regarding the state of your vehicle to your insurance provider when
you purchase a new insurance policy or renew it. The same applies when you file
an insurance claim. If you withhold important information regarding your
vehicle at such times, your insurance provider can reject your claim. A
rejected insurance claim can also affect your credibility when you set out to
purchase a new insurance policy or while renewing the existing car
insurance policy. You need to inform your insurance
provider if you have made a claim on your vehicle in the past, if you have been
charged of any criminal offence, if there are any existing damages on your car,
etc. Such information should be provided when you fill the claim form or when
your vehicle is being inspected by the insurance provider.
Damages
not resulting from accident: Every incident occurring
on the road is not necessarily covered as part of your insurance policy.
Typically, you are only covered for traffic-related accidents on a third party
liability cover. If you have purchased a comprehensive 4 wheeler insurance policy,
you should read what events are covered. For instance, you could be covered for
certain natural disasters, but not all of them. The same applies for man-made
incidents; you could be covered for vehicle theft but not for damage arising
due to riots, strikes etc., for instance. As such, it is important to be aware
of what your insurance policy covers before you file a claim. Similarly, in
case of accidents, you could be eligible for cover in case of accidents
occurring when your vehicle is in motion and not damages caused while it is
stationary. This is why it is important to read the fine print of the insurance
policy. Also note that damages occurring due to daily wear and tear of the
vehicle cannot be claimed.
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