Reasons Why Insurance Companies can Reject your Car Insurance Claims
Updated On Oct 15, 2023
There are various reasons that could lead to rejection of a claim raised towards your car insurance plan, to know some of the most common reasons and to avoid making the mistake in future read the article.
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Facing a rejection of any kind can be disappointing. And in case, this rejection is regarding your car insurance then it can negatively impact your bank balance. Having an insurance cover does not promise immediate gratification rather it depends upon the terms and conditions. If your insurance company does not fulfil the promise of claim settlement, then it is obvious to feel a bit disheartened and offended. However, a car insurance provider has its own reasons for the rejection of your claim.
Reasons Why Insurance Companies Reject Claim
By going through some of the below-mentioned points carefully, you can avoid making any such mistakes in future and make sure that the claim raised by you gets settled smoothly:
1. Drink and Drive
Drinking and driving on public roads is an illegal offence and can result in criminal processing on you. For instance, you consumed alcohol at a party and were driving your car home after the party, and while driving you lost your control and got into an accident with another car. The traffic police would instantly grab you and the party who had to suffer the loss would file a claim. Your insurance provider would investigate the whole scenario and upon knowing that you were drunk while driving, they would outright reject your claim.
2. Making a Fraudulent Claim
An insurance company offers you an insurance plan based upon the principle of ‘Utmost Good Faith’, meaning an individual should never raise a claim with an intention of fraud. In simpler words, insurance is not there for gaining profits but for mitigation of incurred losses. In case, your insurance provider comes to the fact that the claim has been raised with an intention of fraud, they would simply reject it. Moreover, it could lead to legal implications too.
You may also like to read:- Best Car Insurance Add-on Covers And Their Significance
3. Expired Insurance Plan
You can raise a claim against your car insurance plan as long as it is active and valid. In case, your car insurance plan has lapsed or expired, then even your car insurance company is not bound legally to consider your request for claim and compensate you for the damages incurred by your car. Thus, your respective car insurance provider can say ‘No’ to your claim request if the plan has expired.
4. Commercial Use
A claim raised for a four-wheeler used for commercial purpose when it has been insured with a private car insurance plan cannot be raised. The insurance companies offer a distinct cat insurance plan for the same.
Must Check:- Car Insurance Claim Settlement
Also Read:- Importance Of Add-On Covers In Car Insurance
Car repair can turn out to be a very expensive affair for you. And the last thing that you would want to happen would be to face rejection of your insurance claim. If you would remember a few of the aforementioned points in mind, you can save yourself from the horror of facing claim rejection.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.