4 Reasons Why a Vehicle Insurance Claim Can be Denied

by Jessica Kappor Project Manager

Although it is a mandate as per The Motor Vehicles Act, 1988 for every vehicle owner to have motor insurance, there’s no denying that it is essential as well. It is further important to get the motor insurance renewal done regularly and on time. Motor insurance has several benefits. For one, a comprehensive policy not only covers the third party liability but also the repair cost of the vehicle in

some cases, and the hospitalization of the driver in case of an accident. All that one has to do in cases like these is file a claim with the insurance company. However, not all insurance claims are settled. The insurance company holds the right to deny a claim in certain cases. Let us now briefly discuss why a

vehicle insurance claim can be denied:

1. Accident caused because of the negligence of the policyholder

Accidents can happen unexpectedly. Considering the high number of potholes on the Indian roads, the risk of an accident is high as well. After analyzing the policyholder’s claim, if the insurance company concurs that the accident could have been prevented or it was caused due to the negligence on the policyholder’s part, then the insurance company can rightfully deny the claim.

This includes instances like drunk driving in which if the accident is caused because the policyholder was driving the car under the influence of alcohol. In such cases, the insurance company will deny the claim.

2. No Medical Proof

In case an accident causes any kind of injury, it is the responsibility of the policyholder to seek medical attention as soon as possible. Failure to do so can result in denial of claim. In that case, a counter argument can be made against not getting medical attention which one needed and these injuries may not have been the result of the accident. Therefore, it is important for the policyholder to get medical help for injuries as soon as possible and also maintain the proofs for the same to show to the insurance company.

3. Lack of Proof for the Accident

An insurance company can also deny the claim on the basis of lack of proof of the accident. Therefore, if one wants to get their claim settled, then they should ideally click the photos of the damage suffered by the car in the accident. Failing to do so can result in denial of the claim. First, the policyholder should take is file an FIR for the accident, followed by taking notes of the driver(s) involved in the accident, note the name and phone numbers of the eyewitnesses of the accident, and lastly click the photographs of the accident scene. These strengthen the policyholder’s claim.

4. Filling Wrong Information in the Policy Application

An insurance policy is an agreement between the insurance company and the policyholder. Several people fill in false details to wrongfully take advantage of the policy. For instance, they can falsely write about an accident, lie about their driving experience etc. Partaking in such acts can result in claims getting rejected. Therefore, it is always important to write only the truth and not take undue advantage of the policy.

In order to fully utilize your vehicle insurance policy, it is important to keep the bike or car insurance policy active at all times and do not let it expire. For each day the vehicle is not insured, not only is the driver flouting a mandate but also putting himself at risk of paying repair costs from his own pocket if in case an accident was to occur.