February 25, 2024

Genevie Aslinger

Safe Havens

Your Motor Insurance Claim Can Be Rejected For These 8 Reasons

10 reasons why your car insurance claims could be rejected | 1Life Insurance

Following a fatal motorcycle accident, the motor insurance provider recently denied the claim because the motorcycle was a 346 cc model. If the bike’s capacity were more significant than 150 cc, the company would not be responsible for paying under the terms and conditions of the policy.

Here are a few reasons why your vehicle insurer might reject your claim or only partially pay it.

  1. Ignorance Of Policy And Add-On Covers: People frequently complain that their claims are denied because the policy does not cover certain specific damages and must be covered separately by add-on insurance. For instance, the basic policy does not cover engine damage or depreciation losses; you must purchase separate engine protectors and zero depreciation add-on covers for these. *
  1. Car Sent For Repairs: It’s a common mistake to have the car fixed on your own and then notify the insurance company. It’s a mistake because the business finds tracking the incident and the repairs challenging, making it difficult to evaluate the damage and approve the claim. This is the reason you need to contact the insurer so that it can assess the damage, offer roadside assistance, and transport the vehicle to one of its partner garages.
  1. Commercial Use Of Vehicle: In the event of an accident, your claim will be rejected if you purchased a car for personal use but began using it for business.
  1. Concealment Or Wrong Information: Falsifying the no-claim bonus or failing to disclose material facts, such as pre-existing damages, when purchasing a policy are examples of concealment or incorrect information that will result in the claim being rejected. Similarly, a motor insurance claim form may only be accepted if correct information about the incident or the damage it caused is provided. *
  1. Lack Of Insurable Interest: The owner must still transfer the registration and motor insurance in his name. The insurer will not accept the claim in this situation.
  1. Vehicle Modifications: You must notify the insurer immediately if you install a CNG kit in your car, add accessories, or change the vehicle’s body. Otherwise, your claim in the event of an accident won’t be accepted.
  1. Policy Guidelines: The claim will only be accepted if you follow the restrictions on use clauses in your policy. Therefore, the claim will likely be rejected if you are not driving within the designated geographic boundaries or if the vehicle does not meet the policy’s listed requirements, like having a specific engine capacity.
  1. No Driving License: If the driver of the car did not have his license at the time of the collision, the claim will be rejected. A valid consent that has not expired and is for the type of vehicle it is designated for is also required. For instance, the claim will be rejected if he only has a two-wheeler license but is involved in an accident while operating a car.

Make sure you carry out the process for vehicle insurance renewal on time.

* Standard T&C Apply 

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