Afraid of your car insurance claim being rejected? Follow these steps
Your car insurance policy is a mandatory attachment with your car. You might choose to avoid accessorizing your car but you cannot choose to avoid a car insurance plan. It is legally mandatory and you face legal consequences in the absence of a car insurance policy. Besides being mandatory, a car insurance policy is also useful in times of an accident. It pays for any third party liability you might incur or any damages faced by you and your bike. However, at the time of any accident, there are a few steps which you should follow to raise a claim. How many of you know about such steps?
Very few do. Most of you don’t know how to raise a proper and valid car insurance claim. This results in rejection of your car insurance claim. Are you afraid of your insurance claim being rejected?
Don’t be. Here are some common instances of claim rejection and how you can avoid being stuck in the same:
Rejection due to non-adherence to claim process
After an accident there is a claim initiation process which you are required to follow. If you do not follow the prescribed steps or if you miss any step your claim might get rejected.
How to avoid rejection – know and follow your car insurance plan’s claim settlement process. For starters, you should inform the insurance company as soon as you face an accident and are planning to raise a claim. This intimation is necessary so that the insurance company arranges for an inspection of your vehicle. If you get your vehicle repaired without an inspection, any claim you make has high chances of rejection.
Know the process to claim your car insurance with the help of below video
Rejection due to lapsation of policy
If your car insurance policy has lapsed and you have not renewed it you can bid adieu to any possible claim settlement. A lapsed policy means that your insurance cover is inactive. If you raise a claim in a lapsed policy it would get rejected.
How to avoid rejection –A car insurance policy is an annual contract and needs annual renewals. You should renew your policy diligently every year without fail. Only if your cover is active would you be able to get your claims settled.
Read more about Why is an on-time renewal of a car insurance policy important
Rejection due to excluded damages
There is a list of exclusions in your car insurance policy. These exclusions are not paid for. For instance, if you face any damages when driving outside the geographical boundaries of India, such damages are not paid. Similarly, if you face damages when driving under the influence of alcohol, the claim is rejected.
Read more about 7 exclusion in a car insurance policy that you need to keep in mind
How to avoid rejection – You should pay heed to the exclusion list given in your car insurance policy. Before making a claim know whether your claim is for a valid damage or for a damage which is excluded.
These were the possible causes of rejection. You have also been advised on how to avoid these causes. Besides these, you should also try and become a ‘good customer’ for your insurer. If you are a good customer you would have a good insurance history with your insurer which would build your rapport. To be a good customer you should:
- Avoid making small claims. When you make any claim you lose out on the accumulated No Claim Bonus discount available on your renewal premiums. So, when claims are of a smaller amount, try and pay them from your own pockets. Do not raise a claim and save your NCB from getting lost.
- Renew your policy on time. As stated earlier, on-time renewals are very necessary because a lapsed policy does not settle claims. On-time renewals also have other benefits. Your NCB discount is protected and you can also avoid the hassle of inspection of your vehicle which happens when the policy lapses.Read more about Car Insurance terminologies you should know .
- Carry important claim-relevant documents at all times. Your Insurance Certificate, PUC certificate and driving license are important at the time of a claim. You should always carry them with you whenever you are driving.Read more about what documents to carry when you are driving your car
- Install safety devices in your car. Devices like ABS, anti-theft mechanisms, etc. help you lower your claim. Moreover, you should follow traffic rules when driving and drive safe. Here are some safety features in your car which you might not know.
Car insurance claims do not get rejected if you understand the claim process and make a valid claim. Your policy should be in-force so that your cover is active. Also, being a good customer not only lowers your chances of claim (which lowers the chances of rejection), it also earns you great savings. So, be a good customer, know about your car insurance claims and avoid possible rejections.
Know more about how to choose hassle-free car insurance which is claim friendly