The main purpose of a motor car insurance policy is to offset any financial risks and losses that you might face as a result of damage to your vehicle.
Today, most countries across the world have made car insurance mandatory to reduce the risk to both, the driver and the victim in case of a road traffic accident.
Thus, it is only logical to believe that a car insurance provides you with peace of mind and reassurance when driving.
However, there are times when a claim for car insurance can be rejected by the insurer. Read on to understand a few reasons that can result in your motor insurance claim to be rejected:
Incorrect or missing information
To file a motor insurance claim, you are expected to fill a claims form either online or offline that captures the details of the accident. Missing information in the form can be a grounds for rejection of your claims.
Also, all details and declarations provided by you at the time of purchasing the insurance are verified in the event that you claim for coverage. Hence, if you have concealed information or provided inaccurate details to lower the premium amount, there is a high possibility of your claim being rejected. For example, providing incorrect model type of your car or concealing any modifications that you have done to your car that impacts its safety can often result in the insurer not reimbursing your claim.
Failure to submit all necessary documents
To file a claim for car insurance, you are required to submit various documents such as your driving license, mulkiya or vehicle ownership or registration card, repair bills, and the police report. Failure to submit any of the essential documents might result in your claim being rejected by the insurer.
It is highly likely that your claim will be rejected if you have been found to be driving under the influence of drugs or alcohol.
Also, driving without a valid and genuine driver’s license is a common cause for car insurance claims to be dismissed.
Inappropriate use of vehicle
When you purchase a car insurance policy, you are required to fill in the details about the purpose and the usage of your vehicle. Any damage to your vehicle resulting in its usage for purposes other than those specified can result in a claim being cancelled.
For instance, there is a high likelihood that your claim will be rejected if your car is registered as a private vehicle for personal use but you had been using it for commercial purposes.
Delay in filing claims
A significant delay in filing the claims for a motor insurance can result in your claims being quashed. However, remember that most insurers have a cushion time period and you must read the fine print to know what it is. In case of an accident, you must remember to inform your insurer about the damage to your vehicle before turning it in for repair.
Damage due to your negligence
If your vehicle gets damaged due to negligence on your part, your insurance claim might get rejected. For instance, if your car is involved in a crash because you parked it in a no-parking zone, your claim might not be reimbursed.
Similarly, if an accident was caused due to you disobeying traffic rules, the claim can be rejected. Further, such an act can also result not only in a hefty penalty imposed on you by the authorities but also, under extreme circumstances, in arrest and imprisonment.
Also, if the damage to your vehicle has occurred due to heavy load of passengers or goods, which is above the authorised limit, the insurer is exempted from compensating you for the loss.
Further, a claim can be rejected in the event that a theft or an act of vandalism has occurred to your car due to you leaving it unlocked.
Third party using the car
In the event that you have loaned your car to a third party, and an accident occurs when the third party was driving the car, your claim can be rejected.
The idea behind purchasing an insurance policy is to protect your car without burning a hole in your pocket. However, this will hold true only until you are on the right side of the law and are truthful. So, be aware of the reasons that might result in a rejection of claims and avoid such instances.