An insurance policy is a compulsory requirement that all car owners need to comply with. Not only does it ensure legal compliance with the Motor Vehicles Act but also provides a financial cushion against steep repair costs. For instance, a major accident may result in complete damage to your car. In this situation, a car insurance
policy is what will help to safeguard your finances without having to break your bank account.
But when raising a claim, you need to be aware that every insurance company has a set procedure that must be followed. Ignorance or non-compliance with these rules can result in rejected claim applications. So, when it comes to eliminating these minor frictions in your insurance claims, this article mentions some useful tips. Continue reading to know more.
Not filing an FIR
Not filing an FIR or First Information Report when the situation demands is the most common reason that can lead to a rejected claim. An FIR is an official document reporting the incident, and rests with the jurisdictional police authorities. It is necessary in cases of accidents where a third-party claim needs to be raised. In addition to it, theft is also a situation where an FIR is essential. Only after submitting the no-trace report by the policy authorities will the insurer compensate by paying the insured declared value (IDV) of your car. To know which situations require an FIR, it is best to enquire with the customer support team when raising an insurance claim
Insufficient or incorrect documents can also get a claim rejected. When you purchase a new policy or renew your existing one, the insurer shares the car insurance policy with necessary supporting documents that may be required during a claim. This is a crucial set of documents that you mustn’t ignore and pay close attention to the process laid down therein. In case any documents are insufficient for your claim, the insurance company will inform you. Failure to submit them on time will lead to a rejected insurance claim. *
Not familiarising yourself with the policy’s coverage
Depending on the coverage of your insurance policy, the claims are honoured. For instance, third party car insurance
is where only liability claims are settled. These may arise due to accidents resulting in bodily injury or property damage to a third person. On the other hand, comprehensive plans cover more than third-party losses, thereby providing a broader insurance cover. However, standard comprehensive plans exclude the depreciation on your vehicle, which results in a lower insurance claim. Thus, it is essential to know the different policy features and exclusions for ensuring the coverage to deal with losses. *
Failing to renew the policy on time
Lastly, failure to renew the policy on time is one of the reasons that leads to a rejected claim application. It may so happen that you miss your car insurance renewal date, and an accident takes place, requiring you to raise a claim for insurance. Since the policy is no longer active, any claim made is rejected by the insurer. Although some policies provide a grace period to renew your policy, the claims made during such a grace period are not valid. *
* Standard T&C Apply
Thus, you must remember to avoid the above mistakes so that a rejected claim can be avoided. A rejected claim brings about a financial blow most of the times, which can burn a hole through your wallet. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.