Possible Reasons Behinds the Rejection of Your Car Insurance Claim

It’s not anything new for a motor insurance company to turn down a claim. There could be due to a number of factors. Considering the rejection of car insurance claims, there couldn’t be anything more saddening than this. Having your vehicle insured, it is filing the claim with your insurer that you can do in case of any suffered damage or loss. And, if the motor insurance company rejects the claim, it could be a stressful situation since you will not be offered any compensation from the insurance provider. So, if your car insurance claim gets rejected, it could be due to any of the below mentioned reasons.

• Invalid License: If you don’t have a valid license or you are in the possession of a fake driving license, your car insurance claim could be rejected.
• Using the Vehicle For Different Purpose: Your car insurance claim could be rejected if you have insurance for your private car but you use it for commercial or business purposes.
• Driving Under the influence: If the motor insurance company finds out through their investigation that you were drunk at the time of the accident then don’t be surprised if your claim is rejected.
• Failing to Inform on Time: You must keep in mind that you are required to inform your insurer within a specified time in case you face any damage or loss due to an accident. Your failure to intimate the insurance provider on time could result in the rejection of claim when you file one.
• Car Insurance is on the Name of another Owner: In such scenarios where you are the owner of a second-hand vehicle but the motor insurance policy paper is on the name of the first owner, your car insurance claim will be rejected. It is advisable that you contact the seller and transfer the car insurance papers on your name while purchasing a second-hand motor vehicle to avoid the rejection of your vehicle insurance claim.
• Repairing Car before Informing the Insurance Provider: Car insurance companies in India are not liable to cover any loss or damages if your car undergoes any repair before your car insurance provider is intimated. In such cases, the car insurance company needs to estimate the cost of repairing in advance.
• Your Own Negligence: The motor insurance company will not pay a single penny in compensation if they figure out the damages to your vehicle caused from your own negligence; starting your car engine in a water-logged area for an instance. In such circumstances, your car insurance claim may get rejected.

Car insurance can offer you financial relief at the time of any unforeseen events such as an accident, theft etc. Make sure you compare car insurance before buying one on the basis of the claims settlement ratio of a particular motor insurance company in India to minimize the risk of claims rejection. You can avoid your car insurance claim from getting rejected by following these above-discussed points. You can compare car insurance by visiting GIBL.IN, India’s fastest growing online insurance marketplace.