Why Car Insurance Claims Are Rejected?

As per motor vehicle act 1988, if you own a car and driving on India road, you should opt for a vehicle insurance policy. Buying a vehicle insurance policy is mandatory for every car owner in India. The benefit of having a car insurance policy is a fulfillment of your legal liability and financial safety. Your car insurance policy comes into role play if you get approved claims. But sometimes you may get it difficult to understand why your insurance claim has been rejected. Here we will discuss some reasons behind the rejection of car insurance claims.

Reasons behind the Rejection of Car Insurance Claims

• Your car insurance policy only provides coverage for damages due to any accident. Damages which are not a result of an accident or disasters are not covered by car insurance policies. If you file a claim for the uncovered losses/damages, your claim definitely would be rejected.
• In most common cases, the vehicle is insured against natural calamities. That means the insurance company specifies the covered natural disasters in the document of the policy. In a similar manner, if your car is insured against the accidents, the insurance provider will only accept the claims resulting due to the traffic-related accident. Mishap/accident due to any other reason will not be considered as an insurance claim.
• Before filing a motor insurance claim, you should know in details what kind of events you are insured against. If you don’t know this, you may be misled into thinking that a particular event is insured under your car insurance policy when a fact is not like that. In that case, your vehicle is damaged due to the uncovered event; the insurer will reject your claim.
• In case your automobile is damaged due to the uncovered event, the insurance provider will reject your car claim.
• Car insurance policies come with a number of rejection lists and terms and conditions. If you don’t file the claim as per the terms and conditions and include the exclusion part, your claim would be rejected.
• If your vehicle is insured against theft but you left your car unlocked in an isolated place, the insurance company will reject the theft claim since the theft was caused due to your inattention.
• If you didn’t disclose any information regarding your vehicle at the time of purchasing insurance or filing the claim, there will be very chances of claim rejection.
• If your car insurance policy gets expired or the policy status is inactive and you file a claim; your claim would be discarded.
• If policyholders’ actions or behavior appear to be deceptive to the insurer, your claim would be rejected.

Above mentioned points are the reasons that will be responsible for the rejection of your car insurance claim. So to avoid such circumstances you should read your policy document or get in touch with your concerned insurance provider to understand the claim process thoroughly. Once you get to know all the terms and conditions, the process will be easier for you.

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