Five Lesser-Known Reasons behind the Rejection of your Car Insurance Claim
As per law, in India, buying a vehicle’s insurance is mandatory for every automobile owner. There are several advantages of having a car insurance. It is really helpful in fulfilment of the legal liability and financial security of the vehicle and riders.
There can be certain instances when people find it difficult to understand why their four-wheeler insurance claim has been rejected in accidental or any other scenario. If you do not want to face any such similar situation, then there are certain lesser known facts and reasons that will help you file the claim successfully.
Understanding the Reasons behind Third-party Insurance Claim Rejection
1. Damages on the vehicle that are not a Result of a Disaster
Before you file for the claim, you should know what kind of events you are insured against. If you do not know this, you may be misled that any one particular incident or event is insured under the vehicular insurance when it actually is not.
2. Non-disclosure Process.
As a per the agreement between the insurance holder and the insurance company, you are obliged to not disclose any relevant information at the instance of buying or renewing the insurance policy and also filing the insurance claim. If it comes out that the insurance holder has provided incorrect information, the insurance company has the full authority to reject the claim.
3. Exclusion in the insurance policy.
Every insurance policy has some set of exclusions. For example, the insurance company will not provide any claim if there is involved the negligence or irresponsibility of the owner. If the car is left unlocked in a secluded location and later the insurance holder claims for theft, the insurance company will not provide any claim.
Some basic examples of exclusions in case of automobile insurance are listed below.
Damages to the vehicle due to prolonged exposure to the sun, water or arid land or in case of any natural calamity where the damage is because of the irresponsibility of the owner.
Theft or damage on the vehicle that are a result of the negligence of the owner.
Rare natural disasters that is unexpected for that particular region in which the insurance company is providing cover.
4. Cases of Fraudulence
In case where the insurance holder is found to deceive the insurance company or act is found in any manner that is found to mislead the insurance provider, then such a case is considered as fraudulence. This has an adverse effect on the chances on the claim to be accepted by the insurance company.
In any cases of fraudulence, the insurance company will make the point that the insurance holder has consciously intended to mislead and deceive the insurance provider. In such cases, the insurance company has all the right to involve the local police authorities and press legal charge against the policy holder for the criminal offences.
There are some exceptions where the insurance company rejects the claim based on fraudulence. Although, the insurance company generally does not reject the claim for a minor fraud activity which was not a result of the participation of the owner.