Tips to avoid rejection of your car insurance claim

Tips to avoid rejection of your car insurance claim

Rajesh had gone to the insurance company to check why his claim was yet to be approved. To his surprise, Rajesh found that his claim has been rejected despite paying the premium on time. The reason? His driving licence had expired. Rajesh had forgotten to renew his driving licence on time. Beware, such trivial issues could result in rejection of your claim.

* Renew insurance on time. If your claim has to be honoured, the accident should have happened within in policy period. If the policy had expired at the time of the accident, your claim will not be entertained. Hence, renew your insurance on time.

* The insurance company won't pay for any damages caused to the vehicle if you drive it even after an accident. If the car meets with an accident, leave the car there. Do not try to drive it again. If you drive a vehicle that has met with an accident it could lead to more damages. Besides, you won't get the full claim amount. The vehicle should be moved from the spot only after the representatives of the insurance company (vehicle evaluator) visit the spot and assess the damages.

* All the documents of the vehicle should be in place. Check your driving licence, insurance policy, PUC certificate and others if they are valid or else renew them.

* The claim procedures need to be completed before the repair work on the vehicle begins. The insurance company should be intimated immediately after an accident, and only after an evaluator assesses the impact of the accident on the vehicle it should be taken to a service centre.

* The owner’s name should be the same in both the RC book and the insurance policy. While buying insurance cover for the vehicle, you should ensure that the vehicle owner's name and address are same in the insurance policy too. Otherwise the policy will be rejected.

* In case your car is involved in an accident after breaking traffic rules, your insurance claim will be rejected. Speeding, jumping traffic signals, not using helmet and seatbelt, and not following traffic rules could render your insurance invalid. Now, even the pillion rider should wear helmet. Rules also demand that even backseat passengers in a car should wear seatbelt. If you do not follow these rules, your claim could be rejected.

* Details like name, address, vehicle's registration number, engine and chassis numbers and other details should be correct. If you mix up numbers or if there are spelling mistakes, there could be difficulties at the time of claim approval. If there are mistakes in these details, rectify them as soon as possible.

* If you carry out modifications like adding LPG or CNG kit, you need to take the permission of the RTO and inform the insurance company. Otherwise your claim will be rejected.

* Your claim could also be rejected if modifications are carried out in the interior. Insurance cover is provided on showroom condition of the car. Modifications like exchanging steel wheels with alloys and fitting halogen headlamps could result in claim rejection. Modifications have been prohibited by law. However, if any modifications are carried out, the motor vehicles department should be informed about it and its approval should be obtained. The insurance firm should also be informed of them and if necessary additional premium should be paid on this count.

* The vehicle should not be used for criminal activities. If the vehicle has been used for murder, drug peddling, abduction, rape, traffic violations and racing, your claim will be rejected. Vehicles that are involved in police cases won’t get coverage. The vehicle should not be used for any illegal activities.

* In case of an accident, the insurance company should be informed immediately. The more the delay in informing the company, the more the chances of rejection of the claim. For e.g., if the firm is not informed immediately after the accident, the firm could think that the owner is away, which could lead to rejection of the claim.

* If the vehicle meets with an accident or it is stolen, inform the police immediately. If the accident has resulted in death or injuries to third parties, a copy of FIR needs to be submitted along with the insurance claim form.

* Keep cuttings of newspaper reports. Photos, videos and CCTV footages of the vehicle involved in accident could come in handy if the case goes to court. Screenshots of online news and paper cuttings of news reports could be used as proof during hearings.

* Permits and fitness certificates of commercial vehicles should be renewed on time.