Your car insurance claims might be denied! Right here is when – Monetary Categorical

From Rakesh Kaul

We all expect our car insurance to cover any claims made during the term of the contract. However, most of us do not read the policy document and are unaware of the scope of our policy and the exclusions. A claim can be rejected because of this fine print, resulting in disappointment and financial loss. Here are some reasons that would result in the claim being denied or not being paid in full:

Insured declared value (IDV): IDV is the value of your vehicle at the time the insurance was taken out. This is the amount you will receive in the event of theft or total loss of your vehicle. It is highly recommended that you purchase the correct IDV that is closest to the market value of your vehicle as any under or over value can affect the claim in the future.

Bonus without entitlement (NCB): This is a reward (discount) that is granted to the insured by the insurance company at the time the contract is extended if no claims are made during a contract year. It is very important to provide the correct claim status in order to get an accurate NCB according to the range (usually between 20 and 50%) as incorrect information at the time of the claim can lead to conflict. An incorrect NCB declaration can affect claims settlement.

Delay in reporting the damage: After an accident, there is a deadline before which you should notify the insurance company. Too late notifying the insurance company may result in the claim being rejected. The insurance contract instructs the policyholder to inform the insurer immediately upon occurrence of the event (accident). A couple of days after the accident should be fine.

Driving without a driving license / invalid driving license: The driver of the vehicle must have a valid and valid license. For example, if he has a license to drive a two-wheeler but is involved in an accident while driving, the claim will be denied. The license should not have expired and be in effect on the day and time of the accident.

Lack of insurable interest: This means that the owner has not transferred the registration and insurance in his name. If your vehicle is involved in an accident in such a case, the damage will not be taken into account by the insurer as there is no legal transfer of ownership by the RTO. In simple terms, the policyholder should be the registered owner of the vehicle.

Changes to the vehicle: Any change to the vehicle, e.g. B. for the installation of a CNG kit, for the installation of a music system, an amplifier, etc., should be communicated to the insurer and the policyholder should be covered by paying an additional premium. Failure to provide these changes may result in your application being refused.

Misrepresentation of facts: When you take out your policy, you need to find out about the condition of your car, your previous insurance history, etc.

Missing insurance extension: If you do not renew your car insurance in time, your policy will expire. If your car has an accident in such a situation, the insurance company will ignore the claim and reject it. You have to pay all costs out of your own pocket.

Some important additional covers to consider:

Zero depreciation: In the case of car insurance without depreciation, the entire amount of the damage is paid by the insurance company without taking into account the depreciation of the car. If this coverage is not chosen, the depreciation will be made according to the plate at the time of the drawdown.

Motor protection: The engine protection cover is an add-on for car owners to protect their vehicle's engine from uncertain loss and damage. This damage is only covered if this add-on is included in the basic insurance of the vehicle. This is an important add-on to choose as it can save you a lot of money in the event of damage.

Other points where your application will be denied:

Drunk driving is a criminal offense and will result in a criminal charge. In such a case, the insurer will not process your claim.

Use of your private car for commercial purposes

Driving outside of the geographic area specified in your insurance policy

In conclusion, remember that insurance companies will not refuse or refuse claims if you are making claims for the right reasons.

Always remember to read your insurance document and the policy terms and conditions to know what is and what is not. A little bit of work at the beginning will ensure that you are well informed and clear about your insurance policy, thus avoiding a later claim rejection.

(The author is the Chief Distribution Officer, Edelweiss General Insurance. Views expressed are personal. Please read the offer document carefully before purchasing insurance.)

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