What Are the Reasons of Car Insurance Claim Rejection?
Policyholder’s often complaint of their claim being rejected by insurance company despite having a valid car insurance policy. And no matter what the circumstances are, the blame goes directly to the insurance company. But it is not always the insurance company who is at fault.
An insurance policy will always have certain rules, regulations, limitations and exclusions. Ignoring all these aspects can lead to claim rejection. Maximum population purchases the policy for the reason that it is mandated by the law and do not consider claim settlement procedures at all.
There are several reasons of insurance companies denying to settle claims. The below post will help you understand a few of them.
Know why your claim got rejected.
Know why your claim got rejected.
- Expired claims: Insurance companies provides coverage for recent and applicable damages that occur during the term of the insurance policy. Thus, if you are applying for claims of old or pre-existing damages, you will not be eligible for any coverage.
- No Registration: The vehicle you want your claims settled for should be registered as per motor vehicle act. It is an offence to drive an unregistered vehicle on road. And it is only one of the reasons why your claim might get rejected.
- Loss due to inappropriate reasons: If accident occurs due to rash driving or driving after consuming alcohol, then such type of claims will not be settled by insurance company.
- Wrong information: It is the duty of the policyholder to provide correct information related to accident and damages caused to third party. Any wrong information given will lead to denial of the claim.
- Late intimation: If your car meets with an accident, it is your responsibility to report accident as soon as possible. Immediate intimation gives insurance companies opportunity to verify facts of loss. In situations like theft, the initial report to police will be taken into consideration.