What to Do If Your Car Insurance Claim Is Rejected?
Whether you have the cheapest car insurance or the most expensive one, having vehicle insurance is surely a wise decision to shield yourself from the cost of repairs and replacement. Usually, comprehensive car insurance covers most types of auto damages. Moreover, dealing with sudden car damage alongside personal injury, if it is an accident, creates a quite stressful situation. During this moment of need, the rejection of your car insurance claim adds up to the agony.
To help you manage situations like these, the following overview talks about the common rejection reasons, mistakes to avoid and what to do after your claim is rejected.
Common Reasons for Car Insurance Claim Rejection
A car insurance provider refuses to pay the claim for various reasons. Take a look at the most common ones:
● Fraud Claims
Mutual trust is the cornerstone of the relationship between insurance providers and policyholders. While insured individuals trust to get comprehensive financial security for their vehicles, the companies also have faith in customers that they will raise truthful claims. Thus, if the insurer finds out about a false claim or intentional damage, they can reject it without any prior notification.
● Violation of Traffic Regulations
Along with natural and man-made disasters, car insurance also offers coverage against accidents. However, if the claimant is found to be violating traffic rules, such as driving without a valid driving licence, drunken driving, etc, then the claim will be rejected straight away.
● Breaching Policy Terms and Conditions
Every car insurance policy comes with a short disclaimer at the end that most people tend to ignore. It defines that one must always read the terms and conditions carefully. Any violation of these conditions can lead to the rejection of claims.
● Expired Policy
Just like every other element, a car insurance policy comes with an expiry date. Renewing your policy before the arrival of this date saves it from getting lapsed. If you file a claim without renewing your policy, the provider will not entertain it.
● Delay in Claim Filing
This is the most common reason that most claimants encounter. Usually, automotive policy claims should be filed within 1 to 7 days from the accident. In case you fail to file within this timeline, the provider might not consider the claim.
How to Deal with Rejected Car Insurance Claims?
If the claim is rejected and you believe that the claim rejection reasons are off-ground, you can follow the guidelines below to deal with such rejections:
● Review the Denial Letter
Mindfully review the denial letter to identify reasons that may have led to claim rejection. Thoroughly understanding the ground of rejection will help you address the issue precisely.
● Write to the Grievance Cell of the Insurance Company
All insurance companies have an escalation matrix. You can revert to them with your counterargument and appeal to review their decision.
● Consult Car Insurance Experts
Consulting with an expert is crucial to present your case effectively. Seek support from professionals who understand the regulations and can assist you in drafting a complaint letter.
● Reach Out to the Insurance Ombudsman
The Insurance Ombudsman is a Government of India-initiated independent set-up that eliminates the need to reach out to the court for any policy-related grievances. It resolves different types of policyholders’ grievances, be it about claim settlement or misrepresentation of conditions.
Mistakes to Avoid When You File a Car Insurance Claim
No matter how careful you are while making a claim, mistakes tend to happen. These mistakes often increase the chance of claim rejection. Ensure to stay steer clear by not repeating these issues:
● Not Skipping Filing an FIR
If you encounter an accident, you must file an FIR timely. An FIR is an important part of the claim approval documentation.
● Leaving the Scene of Accident
Never leave the accident spot on your own. Let the insurer send a representative who will evaluate the scene and the damages to your car. If you cause further damage to your vehicle by moving it on your own, you may not be able to get coverage.
● Forgetting to Capture Evidence
Take pictures or videos of the accident if you can as quickly as possible. These images support your version of events against the claim. Use your smartphone to capture clear photos that show the damages as they are at the scene.
● Exaggerating the Claim
Do not provide false information to your insurer, as this will likely lead to the denial of the auto insurance claim. Your insurer will send an expert to inspect your car before it goes to one of their garage partners for repairs. Always be honest about your claim to help ensure the process goes smoothly.
Final Words
Motor insurance companies usually only deny claims when they have valid reasons. By keeping these reasons and mistakes in mind, you can lower the chances of your car insurance claim being rejected. However, if you think your insurer has wrongly denied your claim, contact their customer care department or Insurance Ombudsman immediately.
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