Avoiding rejection of car insurance claim

Car insurance is one of the most important insurance policies a person buys after life insurance, health insurance and home insurance. But it is quite a frustrating experience if the car insurance claim gets rejected due to some reason. Some of the reasons why car insurance claim may get rejected are as follows:

1. Non-notification of claim within the specified period: If the insurance company is not notified about the accident and the damage caused to the vehicle within 48 to 72 hours, the claim will be rejected by the insurance company.

2. Non-transfer of insured name: If the car is used or second hand car, the insurance policy has to be transferred in the name of the new owner. If the formalities of transferring the policy have not been completed, the claim is bound to be rejected.

3. Submitting claim after getting repaired: The insurance claim has to be submitted before and not after the vehicle is repaired. The insurance company would surely a claim if the insured intimates the company after carrying out the repairs.

4. Driving the vehicle without valid driving licence: If the person driving the insured vehicle does not have a valid driving licence, the insurance company would reject the claim.

5. Driving under the influence of alcohol or drugs: If the driver is found to be driving under the influence of alcohol or drugs, the insurance company would surely reject the claim.

6. Not getting cover for CNG/PNG kit: If the owner installs a CNG/PNG kit in the vehicle and if it is not covered under the policy, the claim would be rejected by the insurance company.

7. Private vehicle being used for commercial purpose: The insurance claim would be rejected if a private vehicle is used for commercial purposes such as carrying goods or passengers.

8. Car parked in ‘No Parking’ zone: If a car parked in a ‘No Parking’ zone suffers damage, the insurance claim will not be entertained by the company.

9. Vehicle loaded more than seating capacity: If a vehicle loaded with passengers more than the seating capacity of the vehicle meets up with an accident, the insurance claims for the damage caused will be rejected by the insurance company.

Hence, avoid all the above mentioned nine mistakes to avoid your insurance claim getting rejected.