Reasons for Rejection of Insurance Claim by Vehicle Insurance Company

By | November 19, 2015

Top Reasons for Rejection of Insurance 

1) Get the car repaired after accident on own and then intimate the insurance company about the settlement.

2) Installing a CNG/LPG kit and which are not covered the kit while buying the policy.

3) The driver driving the insured car at the time of accident should not have a valid driving license.

4) Registered a car as private vehicle and is used for commercial purpose.

5) Need to notify the claim within specified time. Usually it is 48 hours to 72 hours

6) Specific cases like car parked in a no parking zone or loaded with passenger more than seating capacity,

7) Any consequential damage claims are liable for rejection.

8) The driver was under the influence of intoxicants like alcohol or drugs.

9) The insurance company may reject your claim, if an accident or theft happened beyond a single day after expiry of the policy.

10) The insurer may reject your claim related to the theft of the vehicle or items within, if it determines that driver was largely at fault with regards to the failure to prevent the theft.

Furthermore, the insurance company may reject your claims of theft of items from your vehicle, if you are unable to provide receipts to backup your claims.

11) The insurance company may reject your claim if the accident occurs outside the geographical area as defined in the policy.

There two geographical zones for automobile insurance, as defined by the IRDAI.

Zone A, which covers the metro cities, like Delhi, Mumbai, Kolkata and Chennai, and

Zone B, which covers the rest of India. Normally, automobile insurance is applicable throughout the country. Yet, insured should verify the same in your car insurance policy.

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