Car Insurance Claim Rejection Reasons : What can Prevent Rejection of Motor Insurance Claims?


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Updated on Aug 08, 2023

When we buy a car insurance policy, we do so because it is a mandatory requirement. Thus, we part with our hard-earned money on the legally compulsory motor insurance cover. We believe that the policy would come in handy when we face an accident and make a claim. But what happens when our motor insurance claim gets rejected? We feel sad, cheated and also face huge financial expenses. But do we ever look inwards and find out why the claim was rejected? Were we to blame for the rejection?

Most often than not, it is we, the policyholders who make errors which result in rejection of our motor insurance claims. Such errors, however, can be avoided. There are ways to avoid rejections of motor insurance claims. Do you know what they are?

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Ways to prevent rejection of your motor insurance claims:

Intimate the insurance company immediately after an accident

When you suffer an accident, the right thing to do is to inform the insurance company immediately. The insurer then sends its surveyor who assesses the damages before any repair work begins. If you do not inform the insurer and get your car repaired, the company might reject the claim because the survey of the damage was not done. Thus, making a claim on time is essential. When you intimate the insurer on time the insurer can arrange for the survey of your damaged vehicle, make estimation and allow the repairs to begin. For informing the company, you should call the helpline number of the insurance company, quote your policy number, inform the accident and then take down your claim reference number. This would help when the claim settlement process is initiated by the company.

Give the details of the accident or theft

Only informing the insurance company is not enough. You should also report the accident in complete details. When you do so, the surveyor is duly informed of the situation. He then assesses the damages himself and corroborates the details provided by you. If details are withheld from the company, the company might suspect you of fraudulent claims and this increases the chances of rejection.

In case of theft, both the keys of your car should be in your possession for your claim to be settled. If your car is stolen, filing a FIR is compulsory. Your FIR should specify complete details of instances leading to a loss. You should also mention that both the keys of your car are with you in the FIR. This FIR forms the basis of your claim and should be as detailed as possible. Moreover, when your car is recovered, inform the insurer. The insurer would arrange for a surveyor who should be taken to the police station to have a look at the recovered car so that any damages could be assessed before any repairs are to take place.

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Drive with a valid driving license

Whoever is driving the vehicle which suffers an accident should have a valid driving license. If the driving license has expired or if anyone is driving without a license, e.g. minors, any accidents happening consequently would not be covered by the policy. Thus, to ensure claim settlement, ensure that the driver has a valid driving license.

Submit proper documents purporting your claim

After an accident, the insurance company would ask you for certain documents to process your claim. The important documents include the driving license, insurance certificate, registration copy of your vehicle, a FIR in case of damages caused to any third-party, etc. After the documents are duly submitted, the claim would be easily settled.

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Approach a preferred garage if you have availed of add-on covers

Though you might get your vehicle repaired at any garage, a preferred garage becomes mandatory if you have added optional riders to your motor insurance policy. Repairing your vehicle at the preferred garage not only ensures your claim settlement, but also ensures that the settlement is cashless.

Avoid making claims for expenses which are excluded from the policy

Just like other insurance policies, your motor insurance policy too has some expenses which are not covered. For instance, any consequential loss or wear and tear of your vehicle would not be compensated for. Similarly, if you face accidents outside the geographical area of the country, your motor insurance policy would not pay any resultant claims. When you make claims for these excluded expenses, your claim would be rejected. So, understand the coverage offered by your motor insurance policy before you make any claim.

If you follow these above-mentioned tips, you can easily prevent rejection of your motor insurance claims. Another thing to keep in mind, with respect to a valid claim, is that you should also have a valid motor insurance cover on your vehicle. Usually, motor insurance policies are offered for one year after which they should be renewed for continuous coverage. If you have not renewed your motor insurance policy and make a claim, your claim would, obviously, be rejected. So, always renew your motor insurance policy regularly to avoid any lapse and any consequent claim rejection. A valid motor insurance policy along with the tips mentioned above would help you prevent rejection of your motor insurance claim.

Choose wisely!

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Mar 17, 2021
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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