Car insurance is among the bare minimum compliance, registration, and PUC required per the Motor Vehicles Act. Therefore, it is crucial not to miss such insurance coverage. Since it is compulsory to have one, you must make full use of it. This starts with selecting one of the two car insurance policy types: third-party cover or a comprehensive approach.
Third-party insurance or a liability-only plan ensures coverage against legal liabilities that may arise in the event of an accident or collision, either injuring a third person or damaging third-party property. Both these forms of losses are covered under a third-party car insurance cover. However, people opt for a comprehensive plan due to its limited coverage. Under comprehensive coverage, the damages to your car are also covered by the insurer in addition to third-party coverage, akin to a liability-only policy. Moreover, other perils like natural calamities and manufactured events are also included in the comprehensive range.
Ensuring compliance with your car insurance policy terms is essential to claim these damages depending upon your policy’s scope. However, the claim may sometimes get rejected due to a lack of information and a lapse in adherence. This article elaborates on why your claim may be rejected and how to avoid it.
Concealment of truth
Insurance policies are not a way to earn profits but to mitigate losses. An insurance contract is based on the principle of ‘uberrimae fidei,’ which means utmost good faith. The insurance companies rely on the information you provide, the policyholder, and any concealment of truth is tantamount to fraud. This can be sufficient grounds for rejecting your claim application; hence, you must declare all facts correctly and adequately.
Uninformed modifications
Your insurance company needs to be informed of any modifications to the car. Since changes are done to improve your vehicle’s aesthetic appeal or performance, they directly impact the insurance company’s risk, impacting the premiums. Thus, any modifications to your car that the insurance company may not inform you of a reason for rejecting your claim application. To avoid this, you must update the insurance company on any modifications to your car.
Expired insurance cover
Car insurance plans are valid only for a specified tenure. Claims made after this period have been rejected since the coverage has ended. While it is apparent that you need to keep your coverage active to make a claim, it is essential to remember not to let it lapse. Thus, ensuring timely renewal is necessary. With the help of car insurance renewal online, such regeneration is possible without leaving your home.
Violating traffic regulations
Violation of traffic regulations is another reason your claim may be rejected. The law and insurance rules go hand-in-hand; thus, adherence to the law is essential. For instance, driving after consuming intoxicating substances attracts penalties, so accidents resulting from such situations are also rejected.
These are some of the reasons a car insurance claim can be rejected. In comparison, the article describes how you can avoid it and make a thorough note not to make these mistakes. Also, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, read the sales brochure/policy wording carefully before concluding a sale.
