Car insurance is among the bare minimum compliance and registration and PUC required per the Motor Vehicles Act. This makes it crucial not to miss such insurance cover. Since it is compulsory to have one, you must make full use of it. This starts with selecting one among the two types of car insurance policy, a 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, due to its limited coverage, people opt for a comprehensive plan. Under a comprehensive cover, 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.
To claim these damages depending upon your policy’s scope, it is essential to ensure compliance with your car insurance policy terms. But at times, due to lack of information, there is a lapse in such adherence, the claim may get rejected. This article elaborates on some of the reasons why your claim may get rejected and how you can avoid it.
Concealment of truth
Insurance policies are not a way to earn profits but instead mitigate the losses that might occur. An insurance contract is based on the principle of ‘uberrimae fidei,’ which means utmost good faith. The insurance companies rely on the information provided by you, the policyholder, and any concealment of truth is tantamount to fraud. This can be sufficient grounds for the rejection of your claim application, and hence, you are advised to declare all facts correctly and adequately.
Any modifications to the car need to be informed to your insurance company. Since changes are done to improve your vehicle’s aesthetic appeal or performance, they directly impact the insurance company’s risk, thereby impacting the premiums. Thus, any modifications to your car that are not informed to the insurance company may be a reason for the rejection of your claim application. To avoid this, you must keep the insurance company updated on any such modifications to your car.
Expired insurance cover
Car insurance plans are valid only for a specified tenure. Claims made after this period are rejected since the coverage has already 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 regulation is another reason why your claim may get rejected. The law and insurance rules go hand-in-hand, and 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 different reasons why 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, you can read the sales brochure/policy wording carefully before concluding a sale.