Rejections are never easy to deal with. Moreover, it is really disheartening when these rejections come while you are dealing with a stressful situation. For instance,if you have met an accident and the damages done are very costly to pay for,you tend to look up to your car insurance provider for help. But what if the insurer denies to pay you money and settle your claim.
Majority of the time insurance companies provide you with the cover that was promised when you bought the car insurance. However, every insurance company has certain guidelines and specific conditions, and if only they are met, they clear your claim amount. It is also a right of an insurer to reject your claim under certain conditions, they are:
1. If The Reason OfAccident Was Your Negligence
Thanks to the cracked roads, potholes and well the cattle; Indian roads are highly prone to accidents. That being said, if the insurers think that there was any chance you could have avoided the accident, they can reject your claim. The insurance company can put forward a point that it was due to your negligence that the crash occurred.Activities like driving under the influence of alcohol, or under the influence of any other intoxicant is illegal, and the insurer has every right to reject your claim. In addition, if you are driving with a fake, expired license, then the claim will be denied.
2. If You Have Filled False Information In The Application
Majority o f the times, to save money applicants wrongly fill-in details in the application form. It may be about a driver’s ability to drive appropriately, previous car mishap records, or car-related information like speed, mileage, or any modifications done. When you file an insurance claim, and the company finds about false information, they can reject your claim. Moreover, not only your claim would be denied, but your policy will be cancelled on the basis of fraudulence. Therefore, it is imperative that you refrain from lying while filling the application form so that you can reap the benefits of the seed you sowed.
3. If You Wait To File TheClaim
Every insurance company has a specific time frame set for the policyholder to file the claim. If the policyholder fails to stick to the deadline the insurance company has every right to reject the claim.Moreover, many times insurance companies deny for consequential losses as well, which means if you drive your vehicle even after the accident that leads to further wear and tear then the insurance company will not process your claim. In case of an accident, therefore,insurance companies must be informed as soon as possible.
4. If You Do Not Have A Proof of The Accident
If you want to file for your insurance claim, then you should take photographs of the injuries and damages caused due to the accident. In case you forget to click these photographs, the claim settlement process can be put to a halt, till a proper proof is provided. So, if you want a smooth claim settlement then follow these tips:
- Take note of the details of the driver involved in the accident
- Take note of the details of any eyewitnesses present during the time of the crash
- Click pictures of the accident scene (It can be injuries, damages, skid marks and traffic signs)
5. If Your Policy Is Inactive
In order to claim insurance coverage,the policyholder should pay premiums to the company before the due date. If the premiums are paid on time, the insurer is obliged to pay coverage in case of unfortunate accidents. However, in case the premiums are not paid on time due to any reason, the insurer is not obliged to pay coverage and can back out on accepting the claim.
Having proper knowledge of the factors that can lead to your claim denial is essential. Moreover, it will also ensure that if any unfortunate event comes your way, you have the protective shield offered by your car insurance.